Varsha Arora

The composition of the European accommodations sector has drastically changed over the last decade with short-term rentals gaining a substantial share. The next few years will be very crucial in shaping the sector in the region with respect to market dynamics.

Short-term rentals outshone hotels during the pandemic years in the U.S. accommodation sector. However, the boundaries between hotels and so-called STRs are blurring and it is still to be seen how the two segments will compete to define the market landscape.

Except for the down year of 2020, the U.S. accommodation sector has been performing robustly, with the short-term rental segment gaining market share. We believe hotels will make a strong comeback in 2022 relative to the short-term rental sector.

As the short-term rental market grows rapidly in Asia-Pacific, all of the stakeholders involved will grow along with it. The sector is expected to remain fragmented for now, but in the coming few years as the market matures and its demand-supply equilibrium gets defined, market leaders will emerge.

The STR industry in APAC is at a nascent stage with promising growth prospects. It is to be seen how the STR market matures to find its demand-supply equilibrium and market leaders.

The pandemic has been both a blessing and a curse for destination marketing with restricted budgets, a broadened scope of work, and a breather to rethink and restructure. This year will be pivotal for laying the groundwork to evolve nimbly in line with travel trends and to enhance organizational efficiencies.

Destination marketers have put up a positive outlook for 2022 aiming for diversified funding and revenue sources along with some crucial internal changes focusing on stakeholder engagement, targeted marketing, and sustainability initiatives. It is to be seen if the changes contribute to continual recovery and growth.

People in the West traditionally have used mobile phones as a research tool and a desktop for transactions whereas in the East, since people mostly skipped the offline era, users began directly in the digital age through mobile. Companies looking to boost mobile commerce need to create unique touchpoints and tailor their product offerings to achieve a greater sales mix.

Mobile is already the primary device for travel planning in the majority of the world. Still, mobile bookings are yet to surpass desktop bookings in volume or value. Undoubtedly, travel companies need to increase mobile investments while also deploying an overarching multi-device strategy to engage customers throughout.

The online travel market in Southeast Asia is a promising market, a rapidly growing region with a digitally engaged and highly aspirational middle class that is currently underserved. The industry dynamics are ever-evolving with OTAs endeavoring to do things differently in order to maintain and grow their slice of the market.