Tag: Homestay

Briefing: 72% of families considering alternatives for holiday accommodation

Posted on by Guy Lean

New research from ExpertFlyer found that 72% of family travellers have either booked a non-traditional vacation accommodation, such as hostels or home and apartment rentals, or would consider it. The popularity of alternative accommodation continues to increase. For example, Evercore found that; ‘the online vacation rental market stands to grow from approximately $30bn to $70bn over the next five years.’

In these videos experts from different sectors discuss the appeal and profitability of their product compared to hotels:

Alternative accommodations not only appeal to markets untouched by hotels but can make better financial sense. Research by design consultancy WATG found that an aparthotel operation is able to drive higher levels of profit per sqm than an equivalent hotel operation (£488 and £442 per sqm respectively). WATG’s research also showed GOP margins of 63% for an aparthotel compared to 49% for hotel operations.

Online distribution has helped open up the market to different types of accommodation. Evercore’s report A Change of Vacation Plans, released in April 2015, states that the online vacation rental opportunity stands at approximately 7% of global bookings, a figure which they expect will increase to approximately 11% over the next five years.

The major distributors of vacation rentals are HomeAway, Airbnb and TripAdvisor. HomeAway has over 1 million listings. TripAdvisor’s Vacation Rental’s business grew from 29% of properties in 2011 to 45% by year-end 2014.

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Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Illuminating all accommodation options

Posted on by Guy Lean

A new report from Savills found that only 8% of UK consumers can name a serviced apartment or aparthotel brand.

Although alternative accommodation sectors like serviced apartments, vacation rentals, and hostels have been growing, largely thanks to the opportunities online, there is still a lack of awareness of these products compared to hotels.

To rectify this, companies have been investing in marketing campaigns and launching TV adverts.

In these videos, four experts discuss awareness of hospitality products:

Savills’ European Serviced Apartment report states that 41% of UK consumers don’t know what a serviced apartment is and 57% don’t know what an aparthotel is. Awareness of serviced apartments was better among business travellers, although only 52% knew what an aparthotel was.

HostelWorld put out a new TV advert this year, aimed at young travellers looking for an authentic experience and inviting them to ‘meet the word’. This booking site features campsites, self catering accommodation, B&B’s, and budget hotels as well as independent hostels, and currently lists over 27,000 properties in more than 180 countries.

HomeAway, a vacation rentals model based around people renting out their second homes to holiday makers, has put a significant investment into its marketing budget this year. According to HomeAway’s second quarter reports, the company spent $100,887 on sales and marketing in the first half of 2015. This is up by about 25% on the same period in 2014. They have put out a 2 part TV campaign aimed at families.

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Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: The expansion of extended stay

Posted on by Guy Lean

A Special Report by Skift and Homewood Suites by Hilton found that there has been a 42.3% year over year growth in the pipeline for extended-stay properties in the US. Homewood Suites has 325 hotels in the US. Another growing extended-stay brand is Staybridge Suites, which has 101 hotels in the pipeline. With increasing awareness and demand for extended-stay accommodation internationally, there is high potential for growth.

Experts discuss extended-stays in a variety of accommodation types:

The report ‘The Changing Business of Extended-Stay Hotels’ found that the average age of extended-stay travellers is mid-40s. Also the 18-34 year old age group slightly favours extended-stay style accommodation for leisure trips.

The survey found that guests in extended-stay accommodation are more likely to be on business than leisure and that business travellers will stay longer.

Unsurprisingly the survey found that free wi-fi and a complimentary hot breakfast were considered the two most important amenities in an extended-stay hotel by both business and leisure travellers.

The survey found that only 45.4% of travelling Americans had stayed in extended-stay accommodation and 8.6% didn’t know what extended-stay accommodation was, suggesting there is potential for further growth in the market in America.

According to figures from STR, occupancy in extended-stay has been growing over the past few years. In the US, demand for extended-stay was 72.5% in 2012, 73.1% in 2013, and 74.9% in 2014. 125,000 new extended-stay rooms are expected to open in the US by 2018.

In the economy sector, STR data also showed that extended-stay supply growth was 2.6% YTD in May 2015 and ADR showed a 7.9% year on year change.

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Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Good data management brings insight and development

Posted on by Guy Lean

Our reliance on digital technology means that data is building at an increasing rate. According to IBM we currently create 2.5 quintillion bytes of data everyday and 90% of the data in the world today has been created in the last two years alone.

Much of this data is irrelevant but where businesses are identifying the correct data sources and taking the time to analyse them they are finding value. Hospitality business should also think about making accurate data available to guests and clients.

In this briefing four hospitality experts discuss data management and analysis:

Many disruptive businesses have digital and data front and center of their strategy.

In hospitality Airbnb employs ‘data scientists’ to analyse things like the likelihood of a host accepting requests from potential guests. This analysis can help them increase the amount of successful matches.

In other industries, companies like Uber have invested in clever data analysis to be able to make predictions about its customers’ behaviours outside of the cab.

Established hospitality brands are also investing in digital and data. In October last year Accor announced plans for its digital transformation, which involves a €225 million investment plan and focus on two ‘pillars,’ IT infrastructure and data management.

Much of the data used and produced today is on mobile devices. According to Accenture ‘50 billion devices will produce actionable data by 2020’.

Research by Ericsson found that mobile data traffic increased by 55% from 2014 to 2015.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do so here. It’s free.

Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

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