Skip to main content

Hotels are now entering the short-term residential rental business

It is clear that room-sharing services have created a big threat to hotels — even though a recent study also reported that Airbnb listings could actually have positive impacts on hotels' RevPAR (revenue per available room) performance. Hotels are firing up for a new war against Airbnb, as well as other platforms that provide short-term residential rental services.
Many hotels, for example, have initiated book-direct campaigns and have reinvented their reward programs as a means to encourage travelers to repeatedly make purchases on their hotel websites directly. They are also making a lobbying push and recently have successfully convinced legislators to impose stricter regulationson room-sharing operators in several popular tourist destinations, including San Francisco, Vancouver, Amsterdam and London.
Additionally, more hotels are responding to the shifting needs of customers by introducing new products and services to the market. They are getting ready to compete head-to-head with Airbnb.

The Unbound Collection by Hyatt

The Unbound Collection is a new flagship of Hyatt for boutique hotels, intending to give travelers "the freedom to be extraordinary at unique properties around the world," according to the hotel's website. In fact, creating a unique collection of boutique hotels is not a new strategy among major hotel chains. Marriott's Autograph Collection and Hilton's Curio Collection are two examples.
What really sets the Unbound Collection apart is its new partnership with Oasis Collection, a network for "handpicked" homes that meet hotel standards and, at the same time, provide the services usually found in hotels but not in Airbnb.
One reason why travelers choose Airbnb over hotels is the authentic experience they could get from a trip as a "local resident." Yet there are many concerns associated with residential rentals, such as safety and lack of established service standards.
For short-term residential rentals, the listings on Oasis, or the Unbound Collection by Hyatt, also feature some standardized hotel amenities, such as in-person check-in and check-out service, on-demand concierge services and toiletries packed in small containers. More importantly, travelers will soon be able to earn and redeem their travel reward points from Hyatt for their stays on Oasis.
With its new partnership with Oasis, Hyatt reported promising growth in the second quarter. Aligning with Hyatt's new "asset-light" strategy, the hotel is predicted to have more cash flows for product development.

The Moxy Hotels by Marriott

Marriott debuted the Moxy Hotels brand in 2013 as a new product to enter the economy-tier, three-star segment in Europe. The latest addition of the brand's portfolio includes the Moxy NYC Times Square.
Marriott CEO Arne Sorenson described Moxy Hotels in an interview with Fortune Magazine as a "distinct" brand that could compete with other lodging options in the market, including short-term residential rentals.
The Moxy NYC Times Square also aims to provide travelers affordable stays, in which rooms could be small but with urban and functional designs (some with bunk beds). However, the highlight of this property is really its great public space that can be utilized for different social activities  possibly an inspiration of how hostels make good use of their public space to encourage more social interactions among guests.
Sorenson believed the public space in Moxy Hotels, as well as its affordable price, could make it a better option for young travelers, who would possibly have chosen residential rentals over hotels. For a rate starting of $107 plus tax on Nov. 21 at the Moxy NYC Times Square, would you choose to stay in an Airbnb instead?
No wonder Fortune called this the hotel "for the Airbnb generation."

Airbnb volleys back

The latest move made by Airbnb came Monday when the company's head of public policy, Josh Meltzer, sent an open letter to Sorenson, suggesting Marriott uses taxpayers' money to subsidize the construction and operation of the Marriott hotels. In addition, the letter claimed that taxpayers also helped fund Sorenson's compensation of almost $12.3 million in 2016.
In what direction is the war between hotels and residential rentals heading? Will more hotels enter the short-term residential rental market to compete with Airbnb and others?
Note: This post is also available on Multibriefs.com; The picture was downloaded from DestinationDevelopmentWatch.com

Comments

Popular posts from this blog

Luxury vs. Millennials and Their Technology: The Ritz-Carlton (By Julia Shorr)

Embodying the finest luxury experience, The Ritz-Carlton Hotel Company, LLC has been established since 1983. In 1998, Marriott International purchased the brand offering it more opportunity for growth while being independently owned and operated. They are known for their enhanced service level as the motto states, “Ladies and Gentlemen serving Ladies and Gentlemen”. The luxury brand now carries 97 hotels and resorts internationally and is attempting to keep the aspects of luxury while keeping up with the trends of the technologically improving generations. The Varying Demographics of the Target Market The Ritz-Carlton’s typical target market includes: business executives, corporate, leisure travelers, typically middle-aged persons and elders, and families from the upper and upper-middle class section of society .   This infers a large range of types of travelers in which all are similar in that they are not opposed to spending extra for the luxurious ambiance. However, with

Is It OK for Hotel Staff to Wear Piercings and Tattoos?

Time has changed. I see more and more college students wearing piercings and tattoos nowadays, but is it OK for hotel staff to wear piercings and tattoos? The answer is “no, no, no.” According a report at USAToday.com, customers across the board do not want to see any hotel workers with pierced eyebrow, pierced tongue, tattooed arm, or nose ring. Some may argue that tattooed and pierced workers may seem more acceptable in edgy boutique hotels as compared to the big franchised hotels, but the survey results did not find any differences among a variety of lodging products. Many respondents believe people who wear visible tattoos and piercings are taking a high risk of their professional lives. If you stay in a hotel, do you mind being served by tattooed and/or pierced staff? What if you are the one who makes the hiring decision? References: USAToday.com: http://tinyurl.com/linchikwok08042010 Picture was downloaded from http://tinyurl.com/linchikwok08042010P

Besides helping the environment, what other benefits can restaurants see from green food packages?

Restaurant curbside pickup evolved from the old-fashioned takeout service and has gained momentum since COVID. Restaurateurs embrace the concept, and consumers want it. Curbside pickup will remain an essential restaurant distribution method even after the pandemic. Do off-premises restaurant services add a burden to the environment? The surge of restaurant off-premises services (curbside pickup, takeout, or delivery) could harm the environment because many retailers use food containers and packages made of plastic for one-time usage. Research shows that our world populations produce 130 million tons of single-use plastic a year (including more than food packages here), but in the U.S., only 8% of all plastic products get recycled. Some restaurants have begun using more sustainable materials in food packaging (e.g., disposable containers). Their efforts deserve a round of applause! Nevertheless, it is unclear if their good deeds can also bring them monetary rewards. For example, can gr