November 13, 2018
Booking.com’s alternative accommodations listings surge
In the third quarter, Booking.com reported having 21% more global alternative accommodations listings than it reported having in the same quarter last year.Read more
As new travel aspects surface across Airbnb initiatives, the contest to compete is constantly evolving. For hotels and resorts this presents an exciting opportunity to initiate innovative hotel experiences.
Depending on the choice of property, destination and time of year, hotel pricing can vary substantially. Many times, pricing is based on availability, season or simply demand. Airbnb pricing can vary for similar reasons to hotels. However, these rates have become increasingly competitive as the Airbnb platform continues to thrive. The chart below, highlights hotel vs. Airbnb average rates in some select U.S. cities.
In some cases, such as New Orleans, Airbnb rates have shown to exceed the ADR of local hotels. As a result of this, the New Orleans City Council has temporarily "banned new whole-home-short-term rentals in residential neighborhoods." This action subjects temporary STR's with a 90-day limit until new regulations can be introduced to ratify short-term rentals.
This is a common outcry amongst popular second and third tier destination cities. And further supports the call for updated hotel performance reviews and potential program revisions. It's essential to know where the opportunities exist to recalibrate new pricing structures and tactical planning.
Get the full story at Hotel Online
Read also "Do price positioning and dynamic pricing work on Airbnb too?" at Hospitality Net
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