AirDNA | November 15, 2022
A new joint report from hospitality data supplier STR and short-term rental analytics provider AirDNA shows that competition between short-term rentals and hotels has accelerated in the fight for leisure guests, with the price gap tightening and rental supply falling behind in urban markets.During the pandemic, the U.S. short-term rental sector used its supply flexibility to recover faster than hotels, especially in coastal and mountain destinations, pushing rentals' market share to a record 17% of total lodging in summer 2020. Hotels retargeted towards leisure guests to reclaim demand, focusing on urban areas, pushing short-term rentals' market share back to below its pre-pandemic trajectory.
"During the pandemic, short-term rentals had an advantage over traditional hotels due to consumer perception of better COVID-19 safety, Now in 2022, hotels can compete on price and have claimed demand on key holidays where, pre-pandemic, they typically lost out on leisure travelers."
-AirDNA Vice President of Research, Jamie Lane
Hotels Lead in Cities
In large cities, short-term rental supply contracted dramatically as demand dropped off in 2020, while government subsidies helped to reduce permanent closures of hotels. As urban demand began to recover in 2022, hotels were ready to accommodate travelers, while urban rental supply remains 17% below 2019. With strict regulations limiting short-term rentals in cities like New York and San Francisco, which both lost 25% of their pre-pandemic supply levels, supply is unlikely to fully recover in these areas.
"Looking to the future, hotel supply will likely remain strongest in urban and suburban locations, with low development in coastal and rural areas due to higher barriers to entry, where short-term rentals will likely see more opportunity for growth,"
-STR's Vice President of Analytics Isaac Collazo.
A new STR survey of more than 1,000 travelers shows that value for money is an important factor for rental guests, even more than hotel guests. Despite the perception that rentals are cheaper, in 2019, hotels and comparably-sized rentals were priced around the same, except in urban locations. In large cities, hotels were priced 42.9% higher than rentals, but that gap has closed to 26.6% in 2022. Hotels are now offering lower rates than rentals in all location types except urban and coastal resorts, where the difference is 10%.
While rentals' market share is highest in coastal and mountain or lake destinations, in urban and suburban locations their share has flattened or declined. Rentals should continue to grow their market share, albeit at a slower pace than pre-pandemic, led by expansion in resorts and small towns less well-served by traditional hotels.
AirDNA helps hosts, property managers, and investors succeed in the short-term vacation rental market by turning rental data into actionable analytics. The Denver-based company has tracked the daily performance of 10 million vacation rentals in 120,000 global markets since 2014 to provide real-time market insights. Their range of online and exportable reports offer a solution for everyone in the industry to analyze trends, price rentals, identify new investment opportunities, and benchmark performance.
STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces.
TRAVEL TECHNOLOGY, AIRLINES AND AIRPORTS
Allegiant | September 23, 2022
Uplift, the only enterprise Buy Now Pay Later (BNPL) solution serving the world's top travel and retail brands, has grown its long standing partnership with Allegiant by introducing Allegiant Pay Powered by Uplift on all flights, hotel and car rental bookings making it even easier for customers to pay over time.The new brand Allegiant Pay Powered by Uplift aligns with Allegiant's company mission to offer value and affordability to customers, creating memories that last forever. This enhanced way to pay also now offers customers one easy click to estimate how much they can spend and pay over time, making the booking of their next getaway even easier and more budget friendly.
Since 1999, Allegiant has been connecting customers to the people, places and experiences that matter most. Focused on taking travelers from small to mid-sized cities and jet setting to popular leisure destinations, Allegiant now offers service into more than 30 airports across the country. Allegiant is also a travel company at heart offering easy bookings for all the necessities of a memorable family trip or group getaway.
"From inception, Allegiant has remained committed to affordable and accessible travel. That's why we're introducing Allegiant Pay Powered by Uplift, allowing our customers to go now and rest easy knowing they can pay it with low monthly installments. Our extended partnership with Uplift means Allegiant customers will have a flexible payment option for flights, hotels and car rentals as we continue to grow,"
-Scott DeAngelo, Allegiant Executive Vice President and Chief Marketing Officer.
From the beginning of our partnership, Allegiant believed in the power of Uplift's pay over time solution to create yet another way for consumers to associate Allegiant with accessibility and value," said Tom Botts, Uplift Chief Commercial Officer. "One of the many reasons we enjoy our growing relationship with Allegiant is their commitment to consumer value, for not only flights but complete vacation packages as well.
Uplift partners with over 200 of the world's leading airlines, cruise lines, resorts and other major travel providers to offer BNPL payment options to help more consumers make meaningful purchases and experience the travel that they deserve.
Allegiant Pay, Powered by Uplift - is now available for purchases beginning as low as $49 and for 3 to 11 month terms, with no late fees or prepayment penalties. Customers can book today and fly as soon as tomorrow – even before they are finished making their payments. For more information, visit Allegiant Pay Powered by Uplift.
Down payment may be required. Actual terms are based on your credit score and other factors and may vary. Not everyone is eligible, and some states are not served, including IA and WV. Loans made through Uplift are offered by these lending partners: www.uplift.com/lenders.
Allegiant – Together We Fly™
Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with the people, places and experiences that matter most. Since 1999, Allegiant Air has linked travelers in small-to-medium cities to world-class vacation destinations with all-nonstop flights and industry-low average fares. Today, Allegiant's fleet serves communities across the nation, with base airfares less than half the cost of the average domestic round trip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF
Uplift is the leading Buy Now Pay Later solution empowering people to get more out of life, one thoughtful purchase at a time. Serving the world's top enterprise level travel and retail brands, Uplift's complete range of flexible payment options drive higher conversion and loyalty for partners, while giving customers a simple, surprise-free way to pay over time with no late fees or prepayment penalties. Uplift is currently available throughout the United States and Canada. To learn more, visit Uplift.com.
INDUSTRY OUTLOOK, HOSPITALITY TRENDS
Marcus® Hotels & Resorts | October 10, 2022
Marcus® Hotels & Resorts, a nationally recognized hotel owner and management company and division of The Marcus Corporation (NYSE: MCS), announced today that seven of its owned and/or managed properties have been recognized as top hotels and resorts by the 2022 Condé Nast Traveler’s annual Readers’ Choice Awards.
“We are thrilled that the judicious readers of Condé Nast Traveler recognized seven of our properties as being among the very best of the best, This year’s list includes the largest number of Marcus Hotels & Resorts properties in our history. This is testament to the commitment across our portfolio to the highest standards of excellence. As travel preferences evolve and change, Marcus Hotels & Resorts continuously provides our guests with enriching and authentic amenities, experiences and hospitality. We thank the readers of Condé Nast Traveler for their continued support as they explore and enjoy our properties across the country, and offer our huge congratulations to our outstanding associates who everyday work to make even ordinary days for our guests extraordinary.”
-Michael Evans, president of Marcus Hotels & Resorts.
The Marcus Hotels & Resorts properties that were recognized by Condé Nast Traveler readers as top hotels and resorts in their respective categories are:
Grand Geneva Resort & Spa in Lake Geneva, Wisconsin was recognized as the #2 Top Resort in the Mid-Atlantic and Midwest. This all-seasons premier resort is the ideal Midwest vacation destination. Situated on 1,300 acres in the beautiful woodlands of Lake Geneva, the resort features two championship golf courses, Mountain Top downhill ski hill, full-service WELL Spa & Salon and a wide array of fine dining options. This is the sixth consecutive year this property has been named a Top Resort by Condé Nast Traveler readers.
Saint Kate – The Arts Hotel in Milwaukee, one of the country’s most immersive and inviting arts hotel experiences, was honored as the #10 Top Hotel in the Midwest and #1 hotel in Milwaukee. This is the third consecutive year that the property, which opened in 2019, has been named a Top Hotel in the Midwest by Condé Nast Traveler readers. The hotel broadly celebrates the arts in its many forms with multiple gallery and exhibition spaces, nightly live music and programmed events, and unique culinary experiences awaiting guests inside.
Milwaukee’s distinguished luxury hotel, The Pfister Hotel was recognized as the #15 Top Hotel in the Midwest. This is the sixth consecutive year the 127-year-old, iconic property has been named a Top Hotel in the Midwest by Condé Nast Traveler readers.
For the third time since being redeveloped in 2015, Kimpton Hotel Monaco Pittsburgh was recognized as the #2 Top Hotel in the Mid-Atlantic. Located in the nearly 120-year-old historic James H. Reed building, the property is situated in the center of downtown Pittsburgh near the Cultural District’s many art galleries, restaurants, and retail shops.
The Garland, in North Hollywood, California, was recognized as the #15 Top Hotel in Los Angeles. Built in 1970 by Hollywood actress Beverly Garland and her husband, real estate developer Fillmore Crank, this sophisticated boutique hotel allows guests to relax and unwind in a secluded urban paradise that is only minutes from the excitement and thrills of LA. This is the seventh year the hotel has been named a Top Hotel in LA by Condé Nast Traveler readers since its rebirth in 2015.
Skirvin Hilton was named the #6 Top Hotel in the Midwest, marking the second consecutive year it has been recognized by Condé Nast Traveler readers. This contemporary-classic hotel has a rich history in Oklahoma City stretching back to 1911. At the epicenter of Oklahoma City’s vibrant culture, guests can experience many of the city’s biggest attractions.
A Lincoln, Nebraska landmark, Lincoln Marriott Cornhusker was honored as the #7 Top Hotel in the Midwest. This is the second year the property was recognized by Condé Nast Traveler readers. Just minutes away from the historic Haymarket District, this beautiful hotel has been serving Nebraska's capital city for nearly 90 years and offers guests unique, popular and fun experiences.
The Condé Nast Traveler Readers’ Choice Awards are the longest-running and most prestigious recognition of excellence in the travel industry and are commonly known as “the best of the best of travel.” The 2022 Readers’ Choice Awards are published on Condé Nast Traveler’s website and celebrated in the November issue.
About Marcus Hotels & Resorts
Marcus Hotels & Resorts owns and/or manages 17 hotels, resorts and other properties in the U.S. The company’s distinctive portfolio includes city-center meeting hotels, upscale resorts, historic properties, and premium branded and independent first-class hotels. Marcus Hotels & Resorts is an approved operator for all major lodging brands. A leader in the hospitality industry since 1962, Marcus Hotels & Resorts creates asset value for hotel owners through its expertise in management, development and product repositioning. This includes premier food and beverage brands such as Mason Street Grill, ChopHouse, Miller Time® Pub & Grill and SafeHouse® Restaurants. For more information, please visit: http://media.marcushotels.com and follow the company on Facebook and Twitter (@MarcusHotels).
About The Marcus Corporation
Headquartered in Milwaukee, The Marcus Corporation is a leader in the lodging and entertainment industries, with significant company-owned real estate assets. In addition to its lodging division, its theatre division, Marcus Theatres®, is the fourth largest theatre circuit in the U.S. and currently owns or operates 1,064 screens at 85 locations in 17 states under the Marcus Theatres, Movie Tavern® by Marcus and BistroPlex® brands. For more information, please visit the company’s website at www.marcuscorp.com.