Hotels expected to incorporate short-term rentals

Israel: A survey commissioned by Guesty reveals that 60 per cent of respondents believe that hotels will begin to incorporate alternative accommodation options, with a full recovery of travel predicted in 2022.

The survey, comprised of 523 property management companies, hosts, investors, tech providers, and members of the hospitality ecosystem, shares insights on travel recovery and what the new landscape might look like.

A majority of the respondents (83.2 per cent) feel that short-term rentals (such as vacation rentals and Airbnbs) have won over hotel-goers, with this new user base unlikely to book traditional hotel stays once the crisis has passed. 

60.4 per cent believe that hotels will adopt alternative accommodations, and 22.6 per cent believe that hotel chains will purchase property management companies to support expansion.

This coincides with 75.6 per cent of property management companies (and professional hosts) intending to grow portfolios in 2021, with over one-third believing this growth to be 25 per cent or more compared to the size of business in 2020.

17 per cent however think that booking patterns will return to normal, and the majority of hotels’ business models will remain the same.

In terms of recovery, 51.2 per cent predict travel return to full volume in 2022. The top three factors all survey respondents believe will delay this recovery are:

• Longer vaccine distribution times in certain countries and populations (27 per cent)

• A reduced ability to spend on travel due to economic hits (24.3 per cent)

• Lingering consumer hesitance to travel despite the vaccine (21.8 per cent)

In light of vaccines, 56.1 per cent have not made any price adjustments for dates in 2021. That said, 24.4 per cent have raised prices in anticipation of greater demand and 19.5. per cent have lowered prices in anticipation of greater demand to stay competitive.

Widespread remote work gained the most votes at 33.5 per cent as the trend most likely to endure post-Covid.

The full report, which will include predictions on consolidation, revenue projections and insights on traveller habits, is set to be released later this month.