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Home letting platform Airbnb has seen its brand value exceed that of all but one hotel brand valued in the Brand Finance Hotels 50 report.
The brand valuation consultancy defines brand value as ‘the value of the trade mark and associated marketing IP within the branded business’.
The startup saw its brand value rise by more than 51% to over $5.5bn (£4bn) in 2017, meaning it was only beaten by hotel giant Hilton – valued at $6.3bn (£4.54bn).
Hilton was named the world’s most valuable hotel brand for the third year in a row with with Marriott coming in second with $5.46bn (£3.93bn).
However Airbnb isn’t officially included in the Brand Finance Hotels 50 league table, as it doesn’t own its properties.
In its report, Brand Finance said Airbnb is the “biggest threat to the hotel industry”, predicting that it will be in “direct competition” as it targets business travellers through its new Airbnb for Business programme.
Brand Finance said in the report: “Given Hilton’s downward trend, it would not be surprising to see Airbnb surpass all hotel brands in the 2019 table. Time will tell if hotels move to collaborate with Airbnb in the future or try to compete by providing authentic personalised services to consumers, raising the game for guest experience.”
Commenting on the official table 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.”
Under the Brand Strength Index (BSI), Premier Inn continued to be the strongest hotel brand, with a 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.
BSI reflects mass-market appeal, as well as customer appreciation of value for money, which supports higher scores for preference and satisfaction.
