March 24, 2017
Google Travel exec details changing consumer behavior
If you want to dig for new information about consumer behavior in travel and beyond it, Google’s a good place to start.Read more
The report, called “Who will Airbnb hurt more - ootels or OTAs? … one year later” says the threat is greatest for hotels because “Airbnb usage has increased more than we thought it would and cannibalization of traditional hotels has also been higher.”
Brian Nowak, executive director of Morgan Stanley Research, wrote in the report: “Our AlphaWise survey shows rising Airbnb adoption (now approximately 18 percent of travelers) with demand increasingly coming from hotels.” He added, “While still small, we believe Airbnb has been almost double the threat to hotels in 2016 than previously believed, and the threat is growing.”
Looking at data collected in 2015 and 2016, Morgan Stanley noted a significant increase in the number of travelers who have used Airbnb in the last 12 months. In 2015, only 15 percent of leisure travelers surveyed had used Airbnb in the last 12 months, while in 2016, that number rose to 19 percent. Morgan Stanley predicts that number to rise to 25 percent in 2017. For business travelers, only 12 percent had used Airbnb in the last 12 months in 2015, versus 18 percent in 2016, and in 2017, Morgan Stanley predicts that number will jump to 23 percent.
Among those surveyed, approximately 49 percent also said they had replaced a traditional hotel stay with an Airbnb stay in 2016. In 2015, 41 percent had done so. Morgan Stanley predicts this number will remain steady throughout 2017 and Airbnb’s cannibalization of hotels business will hover at approximately 50 percent for both business and leisure travel.
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Read also "The failure of hotel loyalty programs to defend against Airbnb, quantified"
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