“The relatively stable and growing economy of the past couple of years has given consumers the confidence to resume taking vacations and overnight trips. However, competitors to traditional lodgings, like airbnb.com, have emerged that can both threaten the existing players and grow the overall market.”
– Fiona O’Donnell, Category Manager – Multicultural, Lifestyles, Travel and Leisure
This report answers the following questions:
- Will home sharing affect revenues?
- How important are Hispanics to future growth in the market?
- Are hotels missing an opportunity with frequent hotel guests?
Despite all the media coverage of Airbnb.com and the sharing economy, most Americans are staying at hotels for leisure and business travel. Revenues are increasing and metrics are strong. Hotels are perceived as safer and more reliable than sharing services. Yet, complacency in the face of competition is not an option. The industry must continue to deliver exceptional customer experiences.
- Hotels/motels are the most popular type of paid accommodation.
- Hotel users average 5.6 separate visits per year.
- Hotel stays are integral to leisure/holiday-related travel.
- Most adults choose midscale and upscale hotel chains.
- Good customer service is the number-one factor impacting hotel selection.
- One in three adults avoid certain hotel brands.
Technology & mobile:
- Many adults usually do research online before staying at an unfamiliar property.
- Free breakfast factors into hotel selection.
While “sharing economy” services like Airbnb have had a minor impact on hotel revenues to date, they are growing astronomically and should not be ignored. Hotels need to focus on their perceived competitive advantage for reliability and safety and continue to improve both their customer service and the customer experience to fend off competition. Evolving hotel design and amenities to address the needs and desires of Millennials (for adventure, technology and the needs of their young families) will ensure continued growth going forward.