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.
COMMERCIAL TRAVEL, HOSPITALITY TRENDS
ROOMDEX | September 20, 2022
ROOMDEX, a pioneer in automated hotel upselling solutions, announces that Pandox, a leading hotel company that has ownership in 156 hotels across the globe, activated ROOMDEX’s Upgrade Optimizer software in two hotels, including:“We've always worked with a tool for upselling, but they all required some amount of human labor. So, we were looking for something else, something that was better,” said Jens Egemalm, Distribution Director for Pandox Operations Hotel, “One of my colleagues at the revenue center was doing research on upsell tools in the MEWS marketplace and found ROOMDEX. It was one of the few that was a fully automated system. We liked the simplicity of it, and that led to the first call.”
ROOMDEX Upsell Automation is a set-it-and-forget-it solution that delivers the lowest cost revenue a hotel can generate. ROOMDEX’s Upgrade Optimize combines 2-way integration with a proprietary algorithm to generate True Availability, forecasting inventory usage so there are no operational conflicts. With ROOMDEX, hotel can effortlessly sell and guarantee pre-arrival offers for Room Upgrades, Early Check-in, Late Departure and Guest Services (Breakfast, Parking, etc.).
“In terms of performance, we had high expectations because it was sold to us that it would perform well. And it did. We didn't have to wait one or two weeks before it started performing – it started performing directly. Within just a few days of one of the properties going live, we had more than €5000 worth of upsells. And it’s been consistent – we haven't gone any day without any upsells. Plus, our ROI is higher than what was promised or expected. We are very happy with that.”
ROOMDEX pilot hotels have reported an average of $75 of additional room product up-sell revenue per up-sold stay since using the hotel upsell tool. Upgrade OptimizerTM room revenue is improving RevPar and boosting ADR when hotels need it most.
“We have been very happy with our partnership with MEWS and their app marketplace,Hotel groups like Pandox, who are very experienced in both cloud technology and the upselling space, have found it very easy to run a free trial of ROOMDEX through MEWS. ”
-Jos Schaap, CEO and Co-Founder of ROOMDEX,
ROOMDEX’s hotel upsell software, “Upgrade Optimizer,” automates, monetizes and ultimately simplifies the hotel room upgrade process by putting the power of choice in the hotel guest’s hands. Automation is the cornerstone of our pioneering hotel optimization platform. ROOMDEX uses hotel reservation, guest data and its proprietary persona and price algorithms to deliver personalized digital offers, greatly enhancing the guest experience. The hotel upsell tool relieves hoteliers of the labor time required by other upselling solutions while delivering high margin revenue and a substantial ROI. The company was founded by Jos Schaap, Pierre Boettner and Denis Bajet, three industry veterans (Ex. MICROS-OPERA (now Oracle Hospitality), StayNTouch, Shiji and Nor1). ROOMDEX leverages that 90 years of hotel software innovation experience in PMS, integrations, revenue management, BI, mobile, self-service and upgrade optimization software. Since founding in spring of 2020, ROOMDEX has signed on more than 100 hotels with 9,000 rooms across the U.S., U.K. and Europe.
Pandox is a leading owner of hotel properties in Northern Europe with a focus on sizeable hotels in key leisure and corporate destinations. Pandox’s hotel property portfolio currently comprises 156 hotels with approximately 35,500 hotel rooms in 15 countries. Pandox’s business is organised into Property management, which comprises hotel properties leased on a long-term basis to market leading regional hotel operators and leading international hotel operators, and Operator activities, which comprises hotel operations executed by Pandox in its owner-occupied hotel properties. Pandox was founded in 1995 and the company’s B shares are listed on Nasdaq Stockholm. http://www.pandox.se
Motivation Excellence | November 07, 2022
With the ever changing, and nightmarish, travel scene right now, having a personalized itinerary with up-to-date adjustments as needed in the palm of your hand is exciting! Group incentive travel programs operating through Motivation Excellence all include Inspire, our fully customizable and personalized mobile travel site.
Features of Inspire include:
personalized air, land and event itineraries
airline and customs information
text messaging alerts
interactive photo gallery
"This is something no other incentive company has at their disposal. The personalized itineraries is a game changer for our industry. Plus, we can customize the app in a number of ways to make it truly unique to our clients' needs and travel destination,"
-Brad Hecht, VP Travel at Motivation Excellence.
For a quick overview of Inspire please watch the video on our Motivation Excellence homepage.
Motivation Excellence is a performance improvement agency. We use a variety of award solutions to inspire extraordinary performance among our clients' participants. Through a deep dive into each client's particular situation, we develop a comprehensive plan to meet goals and drive peak ROI.
"I'm extremely confident Inspire adds incredible value to our travel programs. Our own people built it and it's already part of the travel solution; there's not an upcharge for this technology. This represents our commitment to our clients and their most deserving participants,"
-David Jobes, President and CEO of Motivation Excellence.
For more information, please contact our Strategic Marketing Manager, Sky Z. Capriolo at email@example.com.