Airbnb-style rentals have as of late been taking a big bite out of hotel industry earnings but according to a recent analysis by Kyle Killion, co-founder of online luxury suites platform Suiteness, the game is not over yet. Key winning point: the people factor.
According to Killion, short-term rentals succeeded by bringing the human element back into travel. So what can hotels do to gain some ground back? Focus on: location, amenities, and service.
-Amenities – Again, the diversity of services offered at hotels like restaurants, spas, clubs onsite are unbeatable.
-Service is one of the hotel industry’s biggest strengths. Sharing economy rentals often end up being below par with issues like broken plumbing or problematic air conditioning, which you wouldn’t find at a hotel. Plus, the hotel experience can be a luxury experience complete with full staff at your disposal.
Killion concludes the upcoming period will set the new standard as short-term rentals will be getting taxed at the same rate as hotels.