January 17, 2017

The incredible shrinking hotel industry


The hotel industry isn’t known for being quick to adapt and evolve, and it often finds itself scrambling to catch up with changes in technology and traveler behavior.

Online travel agencies are a perfect example. Rather than impede the growth of OTAs by maintaining tighter controls on rates and inventory, hotels threw open their doors and continue to fuel their remarkable growth to this day.

The hotel industry is in a similar state of denial in regard to the latest threat to its well-being: the private rentals sector. And yet the threat is far greater. Whereas OTAs help to fill hotel rooms, private rentals lure travelers away from hotels entirely. And their growth is probably unstoppable.

Vacation rentals have been around for decades, but in recent years the sector has moved from niche market to mainstream, expanding into urban markets and attracting both business and leisure travelers. The great disrupter has been Airbnb, which launched in 2008 and now reports over two million listings in 191 countries worldwide.

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