How are hotels responding to Airbnb types?

Airbnb Vs. Hotels

While using residential and multi-family properties for vacations rentals is nothing new, the rising trend of using one’s home as a de-facto hotel can largely be attributed to websites such as VRBO, Airbnb and Flipkey. The hassles of marketing are largely handled by them, leaving only the extra troubles of management to the property owner.

This pattern is raising many questions, one of which is the impact this trend is having on Hotels and Resorts. Interestingly, despite the enormous growth vacation rentals are experiencing, hotel-lodging demand isn’t declining. According to HVS, hotel-lodging demand has been increasing since 2010 and another study completed by PricewaterhouseCoopers expects this trend to continue through the remainder of 2015.

Publicly both the hotel industry and Airbnb are attributing these statistics to the fact that they offer a completely different experience, something they both insist on. Following an interview with Mark Hoplamazian, CEO of Hyatt, Michael Santoli wrote that Hoplamazian has indicated he sees “no need for a direct business response to Airbnb, in part because it is offering a fundamentally different product than his branded hotels.” If both Airbnb and Hoplamazian are right, then it may be that Airbnb alternatives are creating net new demand for longer term less expensive more do-it-yourself lodging. B&B’s may be more affected than traditional hotels.

While hotel associations haven’t been publicly fighting for an end to Airbnb, they have been adamantly fighting for regulation, in their eyes to level the playing field. Interstate Hotels CEO Jim Abrahamson, chairman of the American Hotel & Lodging Association has said, “We’re not going to stop them, but they have to be regulated.” Airbnb seems to agree. Recently they have begun striking deals with municipalities to tax their guests and remit the payment directly, the same way other lodging establishments currently do.

Is there room for both actors to play by the same rules and offer their different products? Publicly both seem to think so, but only time will tell. Perhaps the battle is still in its infancy, or maybe it’s going to take our next deep recession for the fight to really begin.

 

Explore the housing theme at MIPIM 2016

 

Read more on Hotels & Airbnb:

 

The impact of Airbnb’s luxury apartments on London’s market

Budget and luxury hotel sector enjoy growth worldwide

 

Drew Ector, USD, MIPIM 2016Drew Ector is a California licensed real estate agent and  LEED Green Associate currently working in the real estate and construction fields – primarily investing in distressed multi-family properties and repositioning them for maximum returns.   Drew is hands on in all facets of the business including real estate, construction, and finance.  A graduate student with University of San Diego’s MSRE program, Drew is looking to syndicate larger commercial projects upon graduation.  Drew’s previous experience has included working in policy positions for local elected officials, focused on public safety, the city budget, managed competition, pension issues, economic development, and labor relations.  

 

About Author

Drew Ector

The Ector Group is a family of professionals with a deep understanding and history of residential real estate. With backgrounds in construction, real estate and property management they are able to offer theiur clients a variety of services and comprehensively address their real estate needs.

32 Comments

  1. Avatar

    I get pleasure from, lead to I discovered just what I used
    to be taking a look for. You have ended my four day lengthy hunt!
    God Bless you man. Have a great day. Bye

  2. Avatar

    Hmm it appears like your blog ate my first comment (it was extremely long) so I guess
    I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog.
    I too am an aspiring blog blogger but I’m still new to everything.
    Do you have any tips and hints for newbie blog writers?
    I’d definitely appreciate it.

  3. Avatar

    Greate article. Keep posting such kind of info on your blog.
    Im really impressed by it.
    Hey there, You’ve performed an excellent job. I’ll definitely digg
    it and in my view suggest to my friends. I’m confident they
    will be benefited from this website.

  4. Avatar

    I was curious if you ever thought of changing the
    page layout of your blog? Its very well written; I love what
    youve got to say. But maybe you could a little more in the way of content so people could connect with it better.

    Youve got an awful lot of text for only having one or 2
    images. Maybe you could space it out better?

  5. Avatar

    Have you ever considered about including a little bit more than just your articles?
    I mean, what you say is fundamental and all. Nevertheless think of if you added some great graphics
    or videos to give your posts more, “pop”! Your content is excellent but with pics and video clips, this website could definitely be one of the greatest in its niche.
    Superb blog!

  6. Avatar

    What i don’t realize is actually how you are now not actually much
    more neatly-liked than you may be now. You are very intelligent.
    You realize thus considerably in the case of this matter, made me personally imagine it from so many
    numerous angles. Its like men and women are not fascinated except it’s something to
    do with Woman gaga! Your individual stuffs outstanding.
    At all times care for it up!

  7. Avatar

    Hi! I know this is kinda off topic but I was wondering which blog platform are
    you using for this website? I’m getting sick and tired of
    Wordpress because I’ve had problems with hackers and I’m looking at options for another
    platform. I would be awesome if you could point me in the direction of a good platform.

  8. Avatar

    Hmm is anyone else having problems with the pictures on this
    blog loading? I’m trying to find out if its a problem on my end or if it’s the blog.
    Any suggestions would be greatly appreciated.

  9. Avatar

    Generally I don’t read post on blogs, however I wish
    to say that this write-up very pressured me to check out and do it!
    Your writing taste has been amazed me. Thanks, very great post.

  10. Avatar

    Wonderful beat ! I wish to apprentice while you amend your site,
    how can i subscribe for a blog website? The account aided me a
    acceptable deal. I had been a little bit acquainted of this
    your broadcast provided bright clear idea

  11. Avatar

    If some one wishes to be updated with latest technologies therefore he must be go
    to see this web site and be up to date daily.

  12. Avatar

    Woah! I’m really enjoying the template/theme of this website.

    It’s simple, yet effective. A lot of times it’s challenging
    to get that “perfect balance” between usability and appearance.
    I must say you’ve done a very good job with this.
    In addition, the blog loads very fast for me
    on Opera. Outstanding Blog!

  13. Avatar

    Hey there! This is kind of off topic but I need some advice
    from an established blog. Is it hard to set up your own blog?
    I’m not very techincal but I can figure things out pretty
    fast. I’m thinking about setting up my own but I’m not sure where to start.
    Do you have any tips or suggestions? With thanks

Leave A Reply