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US Hotel Alternatives Market Report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Hotel Alternatives market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

For the purposes of this report, Mintel has used the following definitions:

  • Hotel alternative: Paid lodging other than hotels, motels or casino hotels. This report focuses on the following hotel alternatives:
  • Homeshares: Private residences that are rented by the owner in whole or in part to overnight guests.
  • Vacation rentals: Similar to homeshares, but generally rented as entire residences (opposed to smaller units) for longer terms.
  • Apartment rentals: Residential units within multi-unit buildings that are rented on per-night or per-week basis, as opposed to monthly leases.
  • Campgrounds: Outdoor areas that provide spaces for guests to camp in tents or RVs. Also includes areas that provide on-site lodging such as cabins.
  • Hostel: A building that accommodates many overnight guests in a setting with more basic amenities than a hotel. For instance, many hostels have dormitory- or barracksstyle sleeping areas with minimal privacy, as well as more residential-style common areas.
  • Bed and breakfast: Lodging that tends to be small and privately-owned and is typically rented for one- or twonight stays. Differs from a homeshare in that while many are converted residences, they are fully considered to be businesses.

Expert analysis from a specialist in the field

Written by Mike Gallinari, a leading analyst in the Travel & Leisure sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The number of non-hotel lodging choices available to travelers has exploded in the last decade, becoming a categorical juggernaut in the travel industry. Younger, more experience-minded travelers jumped on early, and in fact remain hotel alternatives’ strongest supporters. Now, while hotel alternatives are still attractive to current young travelers and grown-up early adopters, they have to start filling the gaps in satisfaction to prevent their fans from “aging out” Mike Gallinari
Travel & Leisure Analyst

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Overview
          • The issues
            • Hotel choice relies on experience
              • Figure 1: Factors influencing lodging choice, April 2019
            • Emerging travelers aren’t connecting with brands
              • Figure 2: Attitudes toward hotel brands, by generation and parental status, April 2019
            • Homeshares are popular among younger travelers, parents
              • Figure 3: Attitudes of hotels vs homeshares, by age group, by parental status, April 2019
            • The opportunities
              • Higher tiers are seeing more growth
                • Figure 4: Types of accommodations stayed in, 2017 and 2019
              • Hotels are appreciated and their value recognized
                • Figure 5: Attitudes toward the hotel experience, April 2019
              • Food is a universal draw
                • Figure 6: Desirability of food amenities, by generation, April 2019
              • What it means
              • The Market – What You Need to Know

                • The accommodations market continues to be strong
                  • Hotels, motels and casino hotels are all growing
                    • Loyalty programs are an important tool for brand consideration
                      • Big brands are expanding their portfolios
                        • Economic headwinds could temper healthy industry metrics
                          • Labor shortages could affect consumer satisfaction
                          • Market Size and Forecast

                            • Hotel industry will continue its steady growth
                              • Figure 7: Total US revenues and fan chart forecast of hotel accommodations, at current prices, 2014-24
                              • Figure 8: Total US revenues and fan chart forecast of hotel accommodations, at current prices, 2014-24
                          • Market Breakdown

                            • All hotel industry segments show growth
                              • Figure 9: Travel accommodations revenues, by segment, at current prices, 2016 and 2019
                            • Hotels and motels are the industry workhorse
                              • Figure 10: Total US sales and fan chart forecast of hotels and motels, at current prices, 2014-24
                            • Casino hotels adapt to continue their growth
                              • Figure 11: Total US sales and fan chart forecast of casino hotels, at current prices, 2014-24
                          • Market Perspective

                            • Loyalty programs are an important tool for hotels
                              • Easy booking is important to younger travelers
                                • Figure 12: Hotel/accommodation booking lead times, by generation, February 2018
                              • Big brands are filling gaps in their portfolios
                                • Soft branding and lifestyle boutiques remain popular
                                • Market Factors

                                  • GDP experiencing decelerating growth
                                    • Figure 13: GDP change from previous period, Q1 2007-Q1 2019
                                  • Occupancy is steady for each season
                                    • Figure 14: US hotel occupancy, January 2017-March 2019
                                  • ADR continues its steady climb
                                    • Figure 15: US hotel ADR, January 2017-March 2019
                                  • Despite blip, RevPAR continues record streak
                                    • Figure 16: US hotel RevPAR, January 2017-March 2019
                                  • Nice hotels you’re building…
                                    • …shame there’s nobody to staff ’em
                                    • Key Players – What You Need to Know

                                      • OTAs are E-A-Ting hotel revenues
                                        • Guests are thinking globally and locally
                                          • Hotel tech is getting away from guests…
                                            • Google will run Lodgingtown
                                              • From hotel lobby to town square
                                                • The future won’t have hotel companies or homeshare companies
                                                • Leading companies

                                                  • Best Western International
                                                    • Background
                                                      • New news
                                                        • Choice Hotels International
                                                          • Background
                                                            • New news
                                                              • Hilton Worldwide Holdings, Inc.
                                                                • Background
                                                                  • New news
                                                                    • Hyatt Hotels
                                                                      • Background
                                                                        • New news
                                                                          • InterContinental Hotels Group (IHG)
                                                                            • Background
                                                                              • New news
                                                                                • Marriott International
                                                                                  • Background
                                                                                    • New news
                                                                                      • Wyndham Hotels and Resorts
                                                                                        • Background
                                                                                          • New news
                                                                                          • What’s Happening?

                                                                                            • Direct booking efforts aren’t resonating
                                                                                              • Wellness tourism taking off
                                                                                                • Figure 17: The Vessel at Hudson Yards
                                                                                              • Going green to earn green
                                                                                                • “Alexa…go away.”
                                                                                                  • Bringing local flavor to the hotel room
                                                                                                    • Casinos betting on experiences
                                                                                                      • Hotels are be places to be seen
                                                                                                      • What’s Next?

                                                                                                        • Upscale hotels look to be tech LIDAs
                                                                                                          • Google will dictate hotel booking
                                                                                                            • It’ll all be lodging
                                                                                                            • The Consumer – What You Need to Know

                                                                                                              • Adults average three hotel stays per year
                                                                                                                • With age comes experience, and revisitation
                                                                                                                  • Being an upscale hotel guest is something to aspire to
                                                                                                                    • A good stay starts with a free breakfast
                                                                                                                      • Robots haven’t taken over…yet
                                                                                                                        • Hotels matter for vacations, and brand matters for hotels
                                                                                                                          • Hotels are generally preferred to homeshares
                                                                                                                            • Hotel guest segments
                                                                                                                            • Hotel Choices

                                                                                                                              • Average American has 3 hotel stays per year
                                                                                                                                • Figure 18: Mean and median stays in paid accommodations, 2017-19
                                                                                                                              • Hotel stays are getting more upscale overall
                                                                                                                                • Figure 19: Types of accommodations stayed in, 2017 and 2019
                                                                                                                              • Upscale and higher tiers attract $75K and higher
                                                                                                                                • Figure 20: Type of accommodation stayed in, by household income, April 2019
                                                                                                                              • Age plays a factor in lodging choice
                                                                                                                                • Figure 21: Type of accommodation stayed in, by age, April 2019
                                                                                                                              • Parents are cost-conscious
                                                                                                                                • Figure 22: Type of accommodation stayed in, by parental status, April 2019
                                                                                                                              • Motel men
                                                                                                                                • Figure 23: Economy/motel patronage, by gender, April 2019
                                                                                                                            • Hotel Influences

                                                                                                                              • Experience determines choice
                                                                                                                                • Figure 24: Factors influencing lodging choice, April 2019
                                                                                                                              • Reaching guests can be hard to control directly
                                                                                                                                • Figure 25: TURF Analysis – Hotel influences, April 2019
                                                                                                                              • Age stresses experience
                                                                                                                                • Figure 26: Factors influencing lodging choice, by age group, April 2019
                                                                                                                              • Younger generations look for style and profiles
                                                                                                                                • Figure 27: Factors influencing lodging choice, by generation, April 2019
                                                                                                                              • Parents have more tangible considerations
                                                                                                                                • Figure 28: Factors influencing lodging choice, by parental status, April 2019
                                                                                                                              • High-end earners’ influence is cyclical
                                                                                                                                • Figure 29: Factors influencing lodging choice, by household income, April 2019
                                                                                                                            • Hotel Guests

                                                                                                                              • Hotel Guest Perceptions
                                                                                                                                  • Figure 30: Correspondence Analysis – Symmetrical map – Perceptions of hotel guests, April 2019
                                                                                                                                • Midscale hotels – the future of casual chic?
                                                                                                                                  • Figure 31: Perception of Midscale hotel guests, by age group, April 2019
                                                                                                                              • Hotel Amenities

                                                                                                                                • If you feed them, they will come
                                                                                                                                  • Figure 32: Desired hotel amenities, April 2019
                                                                                                                                • Go ahead and let guests eat and swim
                                                                                                                                  • Figure 33: TURF Analysis – Hotel amenities, April 2019
                                                                                                                                • Holding onto the brunch bunch
                                                                                                                                  • Figure 34: Desirability of food amenities, by generation, April 2019
                                                                                                                                • Parents look to get a lot from their hotels
                                                                                                                                  • “Wellness” isn’t for everyone
                                                                                                                                    • Figure 35: Desired hotel amenities, parent vs non-parent, April 2019
                                                                                                                                • Hotel Tech

                                                                                                                                  • Guests prefer individual, purposeful tech
                                                                                                                                    • Figure 36: Desired hotel tech, April 2019
                                                                                                                                  • TV and seamlessness win out
                                                                                                                                    • Figure 37: TURF Analysis – Hotel tech, April 2019
                                                                                                                                  • Younger travelers are comfortable with digital help
                                                                                                                                    • Figure 38: Desired hotel tech, by age group, April 2019
                                                                                                                                  • High earners want a simple stay
                                                                                                                                    • Figure 39: Desired hotel tech, by household income, April 2019
                                                                                                                                  • Parents welcome robot overlords
                                                                                                                                    • Figure 40: Desired hotel tech, by parental status, April 2019
                                                                                                                                • Attitudes Toward Hotels

                                                                                                                                  • Hotels are crucial to the vacation experience
                                                                                                                                    • Figure 41: Attitudes toward the hotel experience, April 2019
                                                                                                                                  • Older guests have more appreciation for hotels
                                                                                                                                    • Figure 42: Attitudes toward the hotel experience, by age group, April 2019
                                                                                                                                  • Room exists to change parents’ perceptions
                                                                                                                                    • Figure 43: Attitudes toward the hotel experience, by parental status, April 2019
                                                                                                                                  • Add-ons aren’t worth added cost
                                                                                                                                    • Figure 44: Attitudes toward the hotel experience, by select demographics, April 2019
                                                                                                                                  • Hotel brand matters
                                                                                                                                    • Figure 45: Attitudes toward hotel brands, April 2019
                                                                                                                                  • Brand retention difficult among younger generations, parents
                                                                                                                                    • Figure 46: Attitudes toward hotel brands, by generation and parental status, April 2019
                                                                                                                                  • Price isn’t everything, but matters more to some
                                                                                                                                    • Figure 47: Attitudes toward hotel booking, by generation, by parental status, April 2019
                                                                                                                                  • Price-conscious guests are adept at booking through OTAs
                                                                                                                                    • Figure 48: Attitudes toward OTA/hotel website search, by generation and parental status, April 2019
                                                                                                                                • Hotel vs. Homeshare Perceptions

                                                                                                                                  • Hotels are well-liked, but losing the perception battle in trendy categories
                                                                                                                                    • Figure 49: Descriptions of lodging, hotels vs homeshares, April 2019
                                                                                                                                  • Parents, younger travelers are warmer toward homeshares
                                                                                                                                    • Figure 50: Attitudes around hotels vs homeshares – value and convenience, April 2019
                                                                                                                                    • Figure 51: Attitudes of hotels vs homeshares – value and convenience, by age group and by parental status, April 2019
                                                                                                                                • Hotel Consumer Segmentation

                                                                                                                                    • Factors
                                                                                                                                      • Villa Valuers (VVs) (27%)
                                                                                                                                        • Four-wall Finders (FFs) (28%)
                                                                                                                                          • Hotel Huggers (HHs) (27%)
                                                                                                                                            • Independent Interactors (IIs) (18%)
                                                                                                                                                • Figure 52: Hotel consumer segments, April 2019
                                                                                                                                                • Figure 53: Attitudes toward hotels and hotel alternatives, by hotel consumer segments, April 2019
                                                                                                                                            • Appendix – Data Sources and Abbreviations

                                                                                                                                              • Data sources
                                                                                                                                                • Fan chart forecast
                                                                                                                                                  • Consumer survey data
                                                                                                                                                    • Abbreviations and terms
                                                                                                                                                      • Abbreviations
                                                                                                                                                        • Terms
                                                                                                                                                          • TURF Methodology
                                                                                                                                                            • Correspondence Analysis Methodology
                                                                                                                                                            • Appendix – The Market

                                                                                                                                                                • Figure 54: Total US revenues and fan chart forecast of travel accommodations, at current prices, 2014-24
                                                                                                                                                                • Figure 55: Total US revenues and forecast of travel accommodations, at inflation-adjusted prices, 2014-24
                                                                                                                                                                • Figure 56: Total US retail sales and forecast of hotels and motels, at current prices, 2014-24
                                                                                                                                                                • Figure 57: Total US retail sales and forecast of hotels and motels, at inflation-adjusted prices, 2014-24
                                                                                                                                                                • Figure 58: Total US retail sales and forecast of casino hotels, at current prices, 2014-24
                                                                                                                                                                • Figure 59: Total US retail sales and forecast of casino hotels, at inflation-adjusted prices, 2014-24
                                                                                                                                                            • Appendix – The Consumer

                                                                                                                                                                • Figure 60: Table - TURF Analysis – Hotel influencers, April 2019
                                                                                                                                                                • Figure 61: Table – TURF Analysis – Hotel amenities, April 2019
                                                                                                                                                                • Figure 62: Table - TURF Analysis – Hotel tech, April 2019