Table of Contents
Executive Summary
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- Overview
- Observations
- Takeaway 1: Hotel alternatives have a bright future
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- Figure 1: Hotel alternative brand usage and reasons for usage, by age group, April 2019
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- Figure 2: Perceptions of affordability of homeshares vs hotels, by age group, April 2019
- Opportunity
- Takeaway 2: Safety and loyalty programs are issues for hotel alternatives
- Opportunities
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- Figure 3: Desired features of hotel alternative loyalty programs, by experience with alternatives, April 2019
- Takeaway 3: Branding is important
- Opportunities
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- Figure 4: Hotel alternative preference, by age group and parental status, April 2019
- What it means
The Market – What You Need to Know
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- A “hotel alternative” by any name
- The big players are doing well
- Vacation trends are shifting
- The wild is calling
- An unpredictable economy gives homesharing a boost
Market Breakdown
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- Airbnb
- Company Financials
- Expedia Group
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- Figure 5: Vrbo logo and mobile site redesign, June 2019
- Company Financials
- Booking Holdings
- Company Financials
- OYO
- Sonder
- Kampgrounds of America (KOA)
Market Perspective
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- Vacation trends favor homeshares
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- Figure 6: Preferred vacation length and frequency – by age, 2014-18
- Vacationers are seeking the road less traveled
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- Figure 7: Attitudes toward vacation destinations, February 2019
- The outdoors are getting greater
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- Figure 8: Enjoyment of camping/hiking, by age group, 2014-18
- Working retirees provide a good host base
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- Figure 9: Boomer attitudes towards continued employment, March 2019
Market Factors
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- Economic gains are unpredictable
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- Figure 10: GDP change from previous period, Q1 2007-Q1 2019
- Hotel ADR climbing
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- Figure 11: Monthly hotel ADR, March 2017-April 2019
- Pass-through income makes hosting worth its SALT
- High participation in the gig economy works for alternatives
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- Figure 12: Percentage of employed adults with a “side gig,” by generation, March 2019
Key Players – What You Need to Know
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- Hotels and alternatives are moving on each other
- Recreational vehicles look forward, not at the rear view
- Loyalty programs aren’t helping alternatives
- Homeshares have a lot against them
- Hostels, but less hostile
- Temporary rooms for temporary guests
- Wellness gives new areas a shot in the arm
What’s Up?
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- Hotels are getting into alternatives
- Airbnb is getting into everything
- Limited-time hotels
- RVs are rolling out updates
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- Figure 13: Airstream “Bambi” trailer features
What’s Down?
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- Loyalty programs aren’t great for alts
- Perception that homeshares hurt local economies
- Regulation threatens the homeshare model
- Alternatives make headlines with issues of safety and prejudice
What’s Next?
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- A hostel by any other name
- Hotels will deploy their own mod squads
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- Figure 14: Flying Nest modular accommodation
- Wellness tourism give alts a leg up
The Consumer – What You Need to Know
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- Airbnb is the industry leader
- Younger travelers get to stay in alternatives, older ones have to
- The proof is in the pudding
- Safety is paramount
- People want unique lodging, not unique FTPs
- Hotels are seen as more responsive
- Host expertise is nice, but not necessary
Hotel Alternative Guest Segmentation
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- Factors
- Avid Adventurers (AAs) (37%)
- Leery Lodgers (LLs) (26%)
- Traveling Traditionalists (TTs) (38%)
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- Figure 15: Hotel alternative guest segments, April 2019
Number and Type of Stays
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- Alternatives are seeing lots of repeat business
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- Figure 16: Mean and median stays in paid accommodations, 2017-19
- Alternatives have lots of room to grow
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- Figure 17: Types of accommodations stayed, April 2019
- There’s Airbnb, and everyone else
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- Figure 18: Alternative brands used, April 2019
- Homeshares and the outdoors more popular with younger lodgers
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- Figure 19: Hotel alternative brands used, by age group, April 2019
Reasons for Using Hotel Alternatives
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- Perceptions of alternatives improve with experience
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- Figure 20: Reasons for using hotel alternatives, April 2019
- Younger travelers seek alternatives; older travelers settle for them
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- Figure 21: Reasons for using hotel alternatives, by age group, April 2019
- Even older travelers can be won over
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- Figure 22: Reasons for using hotel alternatives among age 45+, by experience, April 2019
- Parents want to be part of the action, but only part-time
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- Figure 23: Reasons for using hotel alternatives among ages 18-44, by parental status, April 2019
- Alts have appeal to different segments
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- Figure 24: Reasons for using hotel alternatives, by segment, April 2019
Perceptions of Homeshares vs Hotels
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- Homeshares win on uniqueness and experiences
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- Figure 25: Perceptions of homeshares vs hotels, April 2019
- Experience matters
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- Figure 26: Perceptions of homeshares vs hotels, by experience with homeshares April 2019
- Homeshares aren’t hip
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- Figure 27: Perceptions of homeshares, by age group, April 2019
- Homeshares lose any perception of affordability with age
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- Figure 28: Perceptions of affordability of homeshares vs hotels, by age group, April 2019
- Homeshares aren’t “for” the over-55 crowd
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- Figure 29: Perceptions of appropriateness of homeshares, by age group, April 2019
- Leery Lodgers stay in alternates despite views favoring hotels
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- Figure 30: Perceptions of hotels vs homeshares, by segment, April 2019
- Even homeshare champions don’t think they’re safer
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- Figure 31: Perceptions of safety, by segment, April 2019
Choosing a Hotel Alternative
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- Security is the top priority
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- Figure 32: Reasons for choosing a hotel alternative, April 2019
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- Figure 33: Reasons for choosing a hotel alternative, by gender, April 2019
- “A” for Safety
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- Figure 34: TURF analysis – decision factors for choosing hotel alternatives, April 2019
- Leery Lodgers want to be close to the action
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- Figure 35: Proximity factors in choosing hotel alternatives, by segment, April 2019
Hotel Alternative Loyalty Programs
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- Preferred FTP features
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- Figure 36: TURF analysis – Hotel alternative loyalty programs, April 2019
- Hotel alternative FTPs don’t need to be unique
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- Figure 37: Desired features of hotel alternative loyalty programs, by experience with alternatives, April 2019
- Parents are more interested in perks
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- Figure 38: Desired features of hotel alternative loyalty programs, by parental status, April 2019
Attitudes toward Hotel Alternatives
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- Hotel alternatives are preferred by parents, younger travelers
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- Figure 39: Hotel alternative preference, by age group and parental status, April 2019
- Alternative guests are more complacent about hotels
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- Figure 40: Attitudes of lodging as simple quarters, April 2019
- Hotels are seen as more responsive
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- Figure 41: Attitudes toward service, April 2019
- Alternative guests value (but don’t seek) their hosts’ expertise
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- Figure 42: Attitudes toward host value, April 2019
- Alternatives have ease of navigation, some level of trustworthiness
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- Figure 43: Attitudes toward hotel alternative infrastructure, April 2019
- More digitally savvy travelers have the most concerns about contact
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- Figure 44: Concerns about online communication, by age group, April 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 45: Preferred vacation length and frequency – nets, by age, 2014-18
- Figure 46: Enjoyment of camping/hiking, by age group, 2014-18
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- Figure 47: Attitudes toward hotel alternatives, April 2019
- Figure 48: Monthly hotel ADR, March 2017-April 2019
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