Qantas first airline to get into bed with Airbnb

The hotel industry has lashed out at Qantas for partnering with sharing economy giant Airbnb.

‘The genius of Airbnb is that it works on two levels,’ says Airbnb host Vanessa Vartto, pictured in her premium-listed apartment in North Bondi, Sydney. Picture: Renee Nowytarger

Qantas has struck a world-first deal with sharing economy giant Airbnb that will allow the airline’s 11.4 million frequent flyers to earn points when they book accommodation.

The deal, which has raised the ire of hotel groups, will allow Qantas frequent flyer members to earn one Qantas point for each dollar spent on any of Airbnb’s 2.5 million accommo­dation listings across 191 countries.

The two-year deal marks the first time the San Francisco-based Airbnb — which allows individuals to rent out a private room or their home to travellers — has worked with an airline loyalty program.

“The way that people around the world plan, book and experience travel is changing rapidly with the digital revolution,” Qantas chief Alan Joyce said.

“We know many of our customers are just as likely to arrange an Airbnb as they are to book a hotel, and we wanted to recognise and reward them for that.”

Tourism Accommodation Aus­tralia, whose board includes members from influential hotel groups such as Crown, Radisson and Hilton, was incensed by the deal, describing it as a “slap in the face” to an industry that supports Qantas through the marketing of Australia as a tourist destination.

“We are furious. Ultimately, Qantas is now supporting an ­industry that is unregulated and non-compliant with the ­insur­ance and safety rules that hotels are bound by,” TAA chief executive Carol Giuseppi said.

“Hotel groups have worked very closely with Qantas investing in promotion of Australia as a travel destination to benefit all ­operators of tourism businesses. By doing this deal, Qantas is ­ignoring the legitimate hotel ­industry and instead supporting an unregulated operator.”

A spokesman for Qantas said hotel bookings remained a “very important” part of what Qantas offered travellers but Airbnb was also something its customers were using. “We think it’s important to give them the choice,” he said.

Airbnb host Vanessa Vartto, 39, said it was no surprise hotels were angry about the deal between Qantas and Airbnb, but she said the online platform provided a service hotels failed to address.

“Of course hotels are angry, but this is about choice. The ­genius of Airbnb is that it works on two levels. Anyone can make money from their home without additional investment but more importantly, it makes accommodation more ­accessible for travellers by opening up locations outside the hotel network at a price for any type of budget,” Ms Vartto said. She and her husband began listing their property on Airbnb three years ago after overseas trips to visit friends and family left their home empty. Their three-bedroom North Bondi apartment commands a premium on the site and can list for as much as $700 a night for six guests.

“We started listing it between two and three times a year but now it’s so popular we rent it out most of the year,” she said.

Despite the popularity of Airbnb, the service continues to operate in a legal grey area in many Australian states and is not bound by the regulations, taxes and insurance that apply to hotels.

Airbnb hopes the deal with Qantas will help legitimise the company in the eyes of governments and regulators. “Qantas is certainly one of Australia’s most trusted brands … and this lends to the legitimisation of Airbnb here in Australia,” Airbnb Australia New Zealand country manager Sam McDonagh said.