Marriott International is entering the vacation rental market to compete with Airbnb in response to the company's need for a different kind of experience, according to Marriott CEO Arne Sorenson.
Formulated with groups in mind, Marriott announced a six-month pilot program in April, in partnership with London-based home rental management company Hostmaker, which does still work with other services, including Airbnb and Home Away.
"Increasingly, people are looking for places that groups can stay," Sorenson told CNBC's Seema Mody on "Squawk on the Street." "Think about a family group, or think about a college reunion, or a bridesmaid weekend, whatever it is."
Airbnb, founded in 2008, is a popular website and app that allows users to reserve short-term lodging in private residences.
Addressing why it took Marriott 10 years to get into the vacation rental business, Sorenson said it took awhile for Marriott to become comfortable with the laws and regulations around the practice.
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