July 24, 2018

Tapping into hotel suites to compete in an era of Airbnb


The key is to give travelers what they’re looking for - more space - by taking advantage of something they already possess: hotel suites.

Hotels today tend to overprice their suites, which typically account for one-third of room inventory or less. With so few available, management prices them high to keep them from selling out - but in the end, this often leaves many of them sitting empty and unused.

Hotel staff tend to offer these suites as loyalty perks to their most valued guests or concessions to disgruntled guests, thereby gifting them to travelers who may not have been looking for a suite in the first place. Meanwhile, travelers who are in fact interested in a suite may have trouble finding and booking them - most hotel websites don’t have effective pathways for guests to discover and reserve them. This leaves suites functionally invisible and underutilized as an alternative to Airbnb or VRBO rentals.

Due to these dynamics, suite pricing is not a true reflection of supply and demand. Two-bedroom suites frequently cost four times as much as a regular single hotel room. Hotels that want to accommodate larger groups that may otherwise turn to vacation rentals can work to bri

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