>> Just in time for the brutal crush of the holiday travel season to grandma's house, bad news for the online travel industry. Priceline, Expedia, and TripAdvisor, three internet companies that disrupted the traditional hotel marketplace, now getting disrupted by four simple syllables, Airbnb. Alana Wise covers the sector for Reuters.
>> So what we saw with Airbnb is that they really came in with this brand new model of offering these vacation rental homes. Wherein rather than buying a room in a crowded hotel, you get an apartment, you get a house, all to yourself, to your friends, right somewhere nice in the middle of the city.
Now Airbnb been extremely successful with this model. Whenever you speak with someone about getting a vacation rental home, Airbnb has now become kinda the short hand for these vacation rentals.>> Priceline warning the growth rate for nights booked and total bookings for the holiday-heavy first quarter could be as much as half rate than three months before.
TripAdvisor reeling from the company's biggest ever stock market plunge after forecasting flat sales growth. And Expedia, the conglomerate behind Orbitz, Travelocity, Trivago, and HomeAway, its answer to Airbnb, also predicting slower demand. Airbnb, however, is not the group's only problem.>> Now we're seeing a shift back to what has previous been the norm.
Where hotels have gotten much better than incentivizing consumers to book directly through, be it free WiFi, discounts on rooms.>> Leaving the websites with no other choice than to spend heavily on advertising to rebuild brand loyalty. But analysts say getting travelers back will be difficult when competing with the experience of Airbnb and the freebies coming from hotels.