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.
Lodging Econometrics has tracked the hotel industry since 1998. Its global database includes new-hotel pipelines as well as renovations and brand conversions. Hotel franchisers once eager to launch new brands are focused on converting existing hotels because it’s a faster way to recover revenue lost to the COVID-19 pandemic than through new construction. In Episode 346, Lodging Leaders explores the increasing number of conversions in the U.S. hotel industry and what owners and operators need to consider before repositioning an asset.
In the first few months of the COVID-19 pandemic in the U.S., financiers anticipated a swell of distressed hotel businesses. Some raised rescue funds to respond to what they thought was a pending crisis. Though there are financial rescues taking place, the level of such activity is far below what industry advisers and fund managers expected. Commercial real estate investors positioned to act in the early days of the pandemic held off and are now just beginning to unleash their cash hoards totaling billions of dollars. Episode 345 of Lodging Leaders podcast explores the state of capital investment in the hotel industry.