Study analysis: Airbnb’s Millennials’ strategy at a turning point

In a recent article posted on ehotelier.com, co-founder and manager of PrivateDeal SA, a Swiss company specialized in night & day-use bidding solutions for hospitality businesses, Isabelle Jan reports that according to a new detailed study on US Millennials travel (Source: Resonance Consultancy, issued Jan.2018), in spite of Airbnb’s millennial targeted strategy, “Millennial travelers prefer upscale and luxury hotels/resorts (35%), followed by camping (33%) and apartment and/or condo (23%)”. Only 23% of them said a condo/apartment rental is their preferred type of accommodation.
“Findings are contrary to the prevailing belief that hotels are in trouble with younger travelers who prefer home sharing,” said Chris Fair, president of Resonance Consultancy”.
Millennials are mostly searching for security and cost
Safety has been for a long time a nightmare for the company, due to terrible stories of trashed houses, fake rentals…, and even if these issues are not 100% solved, there has been a great improvement in the security aspects over time. Cost “is the second-most important factor when deciding on a vacation, at 52%”.
Despite security issues, Airbnb succeeded in understanding the sharing economy and also the needs of Millennials to travel more and live new experiences.
“As of late August 2017, more than 700 bookable experiences were listed on the platform.” There is still a gap between Airbnb practice and hotels’ practice regarding new experience driver for Millennials.
Airbnb strategy is to dominate the whole Millennial spectrum, from backpackers looking for a room at $10 to posh Millennials keen on booking in a luxury hotel or resort. Opening AirBnB to hotels provides a new platform able to cut market shares from the big OTAs like Booking.com and Expedia.
Nevertheless, the ability of Airbnb to offer a adequate booking platform for hotels is being currently questioned by hoteliers around the world. Here is the standpoint of Troy Flanagan, Vice President of State & Local Government Affairs at American Hotel & Lodging Association (AHLA), in regards to Airbnb’s announcement about its new Airbnb Plus and Boutique programs.
“Whether it’s called Plus or Boutique program, Airbnb’s latest scheme is just further proof the company is trying to play in the hoteling space while evading industry regulations. If Airbnb wants to enter the hoteling business, then it needs to be regulated, taxed and subject to the same safety compliances and oversight that law-abiding hotel companies adhere to each and every day.”
“The question that cities and neighborhoods should be asking – will these ‘Plus’ or ‘Boutique’ listings include commercial operators exploiting Airbnb’s platform to run illegal hoteling schemes that have fractured our communities, raised serious safety concerns and increased the price of rent while depleting affordable housing options?”
Overcoming competition
Here we can expect that Airbnb will have to fight hard to enter the hotel market, and overcome competition with the big OTAs.
Moreover, in the battle for direct bookings, hoteliers are more and more involved in actively monitoring their customer base thanks to multiple innovations in the tech travel world.
According to the same study, 47% of Millennials are reported to prefer booking through specific hotel, resort and airline websites. Consequently, hotels need more than ever to concentrate on managing their image, their differentiation, their offer and their prices in order to fit their Millennial clients’ needs. They are supported in this process by new technologies in many areas.
Just to mention a few that are allowing a more efficient and personalized service: chatbots to help guests book on hotel websites, direct bidding engines to boost direct bookings, check-in on apps and self-check-in to save time and money, smartphone apps enabling hotels to open rooms without physical keys, concierge apps to provide additional services and travel information to guests, yield management and so many others.
We will soon assist in big changes in the way travelers book their trip as well as in the way hotels are providing their offer on the market.
About the author
Isabelle Jan is co-founder and manager of PrivateDeal SA, a Swiss company specialized in night & day-use bidding solutions for hospitality businesses. After several years of experience in hotel management and an entrepreneurship background, she is now focused on helping hotels to find new ways of attracting their Millennial guests while improving their direct bookings and simplifying yield management.
Read more here.
RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations , Greek travel market, Greek tourism statistics, Greek tourism report
Source: ehotelier.com
Photo Source:pixabay.com
16/04 23:41
Promotion of Central Macedonia in Poland - direct flights to Thessaloniki begin
16/04 21:19
Hersonissos: 33,000 tourist beds in the “Pay As You Throw” system
16/04 21:07
16/04 16:29
Destination Management and Promotion Organization established in Rethymno
16/04 16:26
PPA | Series of upgrades to the infrastructure of the port of Piraeus
16/04 15:34
Wizz Air: Medical awareness campaign in view of increased Easter travel traffic
16/04 13:38
Expedia | Sports Tourism Accounts for 10% of Global Tourism Spend
16/04 11:59
American Tourism | + 38% travel costs to Europe in 2025 - Shift to more affordable destinations
16/04 11:48
Chania olive oil as a growth driver in the tourism economy of Crete
16/04 11:45
16/04 08:52
CHC Group: The Greek chain that brings Hilton to Elounda and Karpathos
16/04 08:05
The great restoration of the Venetian Wharfs of Chania begins
16/04 07:59
16/04 07:56
Koziakas Mountain Race 2025: The mountain challenge in Koziakas
15/04 17:27
Easter in Syros, Paros, Kimolos, and Alonissos | What the island authorities say to TN
15/04 16:36
Passenger traffic in Q1 | +9.1% at CAA airports, +6.5% in all
15/04 16:30
Investment interest in tourism remains stable internationally in the first quarter
15/04 15:40
Great Britain | Greece and the Greek National Tourist Office at Kuoni Road Show
15/04 15:23
What will our world be like in 2035? - Read what the participants at the Delphi Forum answered
15/04 14:45
Norwegian Cruise Line christens new ship - new attractions on private island
15/04 11:57
Dynamic presence of the Winemakers of Crete at the PROWEIN exhibition
15/04 11:53
Municipality of Sfakia: The Lykos - Marmara route is safer and more accessible again
15/04 08:02
Paros | Optimism for the new season - Bet on extending the season
15/04 07:07
Anopaia Atrapos: A mountain running race with a historical route and an athletic ethos
14/04 21:19
14/04 20:32
14/04 19:36
14/04 14:17
Workshop in Thessaloniki and Athens for cooperation between Greece and Turkey in tourism
14/04 13:39
Increase in visitor numbers and revenues to museums and archaeological sites in 2024
14/04 12:42
14/04 11:52
GNTO | Event for Aegean's new flights from Turkey to five Greek destinations
14/04 11:45
14/04 11:04
Mercan and Wyndham partner for Corfu Acharavi hotel in Corfu
14/04 08:09
March air traffic: Up on last year's March, which had Easter
14/04 07:10
Permits for 8 hotels in Thessaloniki, Crete, Kos, Corfu, Ouranoupoli, and Nafplio
14/04 07:04
13/04 13:15
TUI Musement | Skiathos, Kefalonia, Larnaca, and Troodos in top-7 destinations for tourists 65+
13/04 12:11
Mayor K. Ventouris on TN | Optimism for this year's tourist season in Kimolos
11/04 18:20
A. Fiorentinos at an Expedia event: Santorini is returning to normality
11/04 16:07
G. Hatzis: Trump tariffs could theoretically affect tourism from the US
11/04 12:23
Double international distinction for Paros by American Express Travel and Forbes
11/04 11:43
Crete: Pioneer for resilient tourism in the face of climate change
11/04 11:32
“Philoxenia Travel & Culture”: A Photographic Journey to Authentic Greece
11/04 11:28
11/04 08:51
Participation of the municipality of Erymanthos as a full member in the Network of Cities with Lakes
11/04 08:46
"Two destinations, one purpose": Promoting pilgrimage tourism in Lesvos and Chios
11/04 07:54
11/04 06:11
ForwardKeys | Heraklion and Thessaloniki among the top Easter destinations in Europe
10/04 16:15
N. Chalkiadakis on TN | Arrivals take off at the airport in Kastelli
10/04 12:56
WTTC: Global tourism to soar over the next 10 years - Contribution to $16.5 trillion in 2035
09/04 23:02
Digital tourism promotion for the Holy Shrine of Panagia Kastriani of Kea
09/04 22:08
International award for the Venetian Castle of Fortezza in Rethymno
09/04 19:45
09/04 19:13
Olga Kefalogianni: Authenticity, sustainability, and tourism 12 months a year
09/04 16:19
09/04 13:24
09/04 12:27
Pieria | POTAP - jet2 collaboration to open up the British market
09/04 11:36
09/04 11:31
09/04 08:50
09/04 07:57
"Thematic olive routes” | Crete opens a new page for its visitors
09/04 07:52
New English-speaking postgraduate program from the Technical University of Crete
09/04 07:49
Sitia Geopark: Educational tourism in the nature of the Ziros Plateau
09/04 07:45
Mykonos: Investments in infrastructure to boost cruise tourism
08/04 04:55
N. Chalkiadakis on Tornos News: How a beer brought swingers to Crete
08/04 04:55
Alexandroupolis Municipality at Tourism Workshop in Bucharest
08/04 04:55
Municipality of Drama: Highlighting and integrating Byzantine fortification into urban fabric
08/04 04:55
Participation of Samothrace in a project to highlight the cultural value of historical sites
08/04 04:55
08/04 04:50
07/04 22:48
07/04 22:42
07/04 22:34
07/04 22:14
Crete | Agrotourism in the spotlight: presentation of the “epaithros” Network in Heraklion
07/04 16:17
Promoting Greece in the American market as a cruise destination
07/04 16:15
alltours boosts presence in Greece | Two new alltoura Club Hotels in Crete and Rhodes
07/04 15:43
M. Konsolas: 3 proposals to prevent citizens from being burdened by the increase in ferry tickets
07/04 15:37
Preveza "travels" to Syntagma - Exhibition promoting the prefecture and local products
07/04 14:20
07/04 12:27
Athens Airport: +10.8% passenger traffic in March, +11.4% in the quarter
07/04 11:32
International Tourism | 16.8% jump in hotel bookings for Easter 2025
07/04 08:40
Special forms of tourism | Birdwatching: The first birdwatchers arrive in Lesvos
07/04 07:46
06/04 14:13
Sleep Tourism: Sleep becomes the new "destination" - opportunities for Greece
06/04 08:34
Greek wine in Brazil: Challenges and opportunities with partnerships as a “weapon”
06/04 07:53
Impressive increase in Turkish tourist arrivals in Chios in the quarter
06/04 07:00
Municipality of Heraklion: 45 bicycles for free use by citizens
05/04 08:02
04/04 19:36
04/04 18:47
04/04 18:39
Running with the History of Arta | 9th Half Marathon "The Road of Giofiriou"
04/04 15:12
Greek Tourism 2025: With 28.2 million airline seats, the summer season opens
04/04 11:55
4300 runners from 60 countries in the 10th anniversary TUI Rhodes Marathon
04/04 11:41
Athens Municipality Festival 2025 | The city's biggest celebration, with more than 200 events
04/04 08:30
Decisions for 6 hotels in Mykonos, Rhodes, Kos, Crete, Samos, and Meteora
04/04 06:51
Info-kiosks in Poros | informing visitors about accommodation, catering, and shopping
04/04 00:05
Decisions for 7 hotels in Athens, Rhodes, Crete, Halkidiki, Corfu, and Kos
03/04 19:44
Crowds of wine lovers and professionals at the Cretan Wine Exhibition "OiNotika 2025"
03/04 19:40
Strategic cooperation between GNTO and jet2 | Samos, a new destination
03/04 13:48
Angela Gerekou: Returning to nature and our roots is a driver of tourism development
Promotion of Central Macedonia in Poland - direct flights to Thessaloniki begin
Chania olive oil as a growth driver in the tourism economy of Crete
Wizz Air: Medical awareness campaign in view of increased Easter travel traffic
Expedia | Sports Tourism Accounts for 10% of Global Tourism Spend
Hersonissos: 33,000 tourist beds in the “Pay As You Throw” system
American Tourism | + 38% travel costs to Europe in 2025 - Shift to more affordable destinations
PPA | Series of upgrades to the infrastructure of the port of Piraeus
Destination Management and Promotion Organization established in Rethymno
CHC Group: The Greek chain that brings Hilton to Elounda and Karpathos
The great restoration of the Venetian Wharfs of Chania begins
Koziakas Mountain Race 2025: The mountain challenge in Koziakas
Investment interest in tourism remains stable internationally in the first quarter
Norwegian Cruise Line christens new ship - new attractions on private island
Easter in Syros, Paros, Kimolos, and Alonissos | What the island authorities say to TN
Passenger traffic in Q1 | +9.1% at CAA airports, +6.5% in all
Great Britain | Greece and the Greek National Tourist Office at Kuoni Road Show
Athens transportation schedules over 2024 Greek Easter holidays announced
What will our world be like in 2035? - Read what the participants at the Delphi Forum answered
Airbnb | 76 billion euros in revenue for hosts in Europe in 2024
Priceless antiquities returned to the people of Greece at New York Consulate