The buzz about Airbnb is loud. This sharing economy sweetheart and companies like it connect travelers to a completely different kind of travel experience. Affordable. Personal. Local. And disruptive to traditional hotels.
2,500 TRAVELERS IN FIVE COUNTRIES
about their lodging preferences.
BUSINESS TRAVELERS (74%) AND
LEISURE TRAVELERS (84%)
prefer hotels over all other options.
But private accommodations are gaining traction.
China has the highest percentage (78%) that would consider staying with friends and family when planning a business trip. This may reflect the still emerging mid-scale business class hotel market in the country, particularly in the 2nd and 3rd tier metro markets.
Travelers who stay only in private accommodations are a minority, but a significant one. Consider this: 41% OF TRAVELERS— 61% OF MILLENNIALS—chose to stay at a private accommodation over a hotel in the last six months.
For hotels to protect their market position, they must answer a fundamental question: WHY DO TRAVELERS CHOOSE PRIVATE ACCOMMODATIONS WHEN BOOKING A STAY?
Surprisingly, price is the top driver of consideration and choice, but not overwhelmingly so. Several factors influence why guests choose private accommodations.
Travelers in Europe, Asia and the United States have distinct views about private accommodations. Market nuance is everything. There are no one-size-fits-all answers to competing with private accommodations.
How to compete with private accommodations over the long term? Lowering prices is not the answer. Hotels must up their game across the board.