Hotels are weathering the Airbnb storm, according to new research which shows that occupancy rates are continuing to grow and prices remain higher than those at the shared economy upstart.
Researchers at STR analysed data from 13 global markets for the year ending July 2016 and found that hotel occupancy was “significantly higher” than Airbnb occupancy.
It also found that Airbnb had grown, with more hosts than ever renting their homes meaning it typically accounts for 3-4% of the market. But Airbnb’s biggest occupancy levels were seen in markets where hotels had high occupancy too.
Average daily rates were generally higher at hotels than on Airbnb – on average it was $16 higher in the USA.
Hotel ADR only decreased in one market (Paris) while Airbnb rates decreased in eight markets and increased in five.
The research also found that Airbnb renters typically stayed longer than hotel guests, with roughly half of Airbnb customers staying for a week or longer.
The report concluded: “It’s clear Airbnb is a force in the travel industry.
“Our research reveals strong Airbnb growth rates in supply and demand. It’s important to note that such increases are coming off relatively low baselines for comparison.
“Still, the trend highlights not only the desire of unit owners to make their spaces available for short-term rent but also the desire of a willing audience to book them.
“While that much is certain, less so is the direct impact that Airbnb has on hotel demand. So many factors are at play—supply growth, macroeconomic headwinds, disruptive technology and new entrants to the accommodations space—which makes isolating causality between any one or two a challenging pursuit.
“Airbnb may be a relatively new factor, but it is one among many in a long line of rent-by-owner platforms.”