The $100 billion industry vacation rental sector could be going into over-drive as it attracts growing interest from investors, major hospitality brands and travelers seeking alternate accommodations.
Hotels are getting more people to join their loyalty programs than ever before. Now they just need to raise their engagement levels to keep them coming back — booking direct, as they'd prefer.
On hotels' direct-booking rates, one of the major chains is already talking to traditional travel agencies about handing them over. In addition, Choice Hotels, for one, is signaling that better deals from online travel agencies could go a long way toward ending its boycott in distributing loyalty-member rates. If every person has a price, then so indeed do hotel chains.
Although most of the rankings fall in line with what you'd normally expect, there were a few surprises. It's also clear hotels have some work to do when it comes to their food quality, amenities, and loyalty programs.
Choice Hotels recognizes that traveler behavior is changing. For the sometime-business and other-times-leisure traveler, Choice Privileges members can earn points whether staying in a hotel or in a vacation rental. And because "millennials want instant gratification," according to CEO Stephen Joyce, Choice is giving it to them in the form of perks at check-in.
The latest revenue numbers from Airbnb explain why Expedia is acquiring HomeAway, the Priceline Group is touting its 21 million bookable rooms, and Wall Street analysts are questioning hotel-chain CEOs on the prospect of selling hotel rooms through Airbnb.