Last week, part one of our report on Airbnb looked at the home-sharing giant’s impact on hotel business performance. We reported on a study that shows for every 100 percent increase in Airbnb accommodations in a market, hotel RevPAR declines by an average 3 percent.
We also reported a growth in the number of whole houses on online distribution channels as homes become “investor units.”
Meantime, more everyday homeowners have warmed up to the idea of making some extra money by sharing their digs with short-term travelers.
This week, in part two, we explore what’s good and smart about Airbnb and how hotels can successfully vie for travelers’ bookings and loyalty. We also take a look at new lodging trends spurred by the home-sharing movement.
We talk to Leslie James, head of marketing at AirDNA, a data research platform for the home-sharing industry. We hear from Paul Breslin of Horwath HTL and Mark Woodworth of CBRE Hotels Americas Research about the new generation of travelers driving the home-sharing trend. We also talk more with Makarand Mody, a researcher and assistant professor at Boston University School of Hospitality Administration who has published several studies about Airbnb and the home-sharing phenomenon. And with Hans Detlefsen of Hotel Appraisers and Advisors, who has ideas about hotel companies adopting some Airbnb business practices.
The coronavirus pandemic is forcing the lodging industry to rethink health and wellness. Designers such as Blanche Garcia of B. Garcia Designs see this as an opportunity for hotels to revise their messaging beyond clean and safe by introducing wellness products and programs they can market and attract guests who want to feel good during their stay and return home feeling better than when they left. Those who promote healthy buildings as well as safe travel are exploring how implementing elements of wellness can be a cure for hotel businesses struggling to survive the COVID-19 pandemic and the subsequent economic downturn. This report is part of Long Live Lodging’s ongoing coverage of the coronavirus crisis and its impact on the hotel industry.
She Has a Deal, a program that promotes women as hotel owners, last month minted several new investors through its inaugural pitch competition. Long Live Lodging examines what it took for the three women who comprise the team called Datcher to win the top prize of $50,000 in equity in a fund that would include their $27.4 million project proposed for downtown Detroit. Two additional projects proposed during the competition were selected to benefit from She Has a Deal’s first investment fund. Datcher’s winning formula as well as the other project proposals can be emulated as hotel developers and investors search for ways to fund upcoming projects that reduce investors’ risk while delivering a healthy return as the lodging industry navigates its way through the business downturn caused by the coronavirus pandemic.