Online community accommodation brand Airbnb has for the first time seen its brand value overtake all but one hotel group – Hilton.
In the Brand Finance Hotels 50 report, Airbnb saw its brand value rise by more than 51% to over $5.5b (£4b) in 2017, marking the first time in which Airbnb’s brand value exceeded that of all but one hotel brand valued in the Hotels 50.
For the third year in a row, Hilton was named the world’s most valuable hotel brand, with a brand value of $6.3b (£4.5b) with Marriott coming in second at 8% to $5.5b (£4b) on the back of growing group revenues, such as the acquisition of Starwood, which boosted the company’s number of properties by 40%.
Although Airbnb isn’t included in the Brand Finance Hotels 50 league table, as it doesn’t own its properties, it’s still seen as a threat to hotels. Brand Finance predicted that it will be “direct competition with hotels” as it begins to target business travellers through its Airbnb for Business program, which launched in the second half of 2017.
David Haigh, chief executive of Brand Finance, said: “The trends in the Brand Finance Hotels 50 league table reflect the success of Marriott’s expansion strategy, which is likely to continue exerting a positive impact on brand value in the future. It will be interesting to see if Marriott overtakes Hilton to claim the top spot for most valuable hotel brand next year.”
Premier Inn continued to be the strongest hotel brand, with a Brand Strength Index (BSI) score of 88.7 and a brand rating of AAA, while UK competitor Holiday Inn managed to hold on to its place in second with a score of 85.0, also receiving an AAA brand rating.
This reflects their mass-market appeal, as well as customer appreciation of value for money, which supports higher scores for preference and satisfaction.
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