How Millennials and The Sharing Economy Are Transforming Hotels
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Are millennials' use of the sharing economy crashing traditional hotels? The answer – as AdWeek discovered – is not yet.
“While Airbnb's growth rate has been impressive (from 47,000 guests worldwide in the summer of 2010 to 17 million in the summer of 2015), it actually hasn't yet made a dent in hotel chains' bottom lines. From 2014 to 2015, REVPAR for U.S. hotels was up 6.2 percent, from $74.11 to $78.71. And from 2010 to 2015, REVPAR rose from $58.45 to $78.71, according to hotel industry research firm STR,” wrote Christine Birkner.
The lodging industry, as a whole, has plenty of room for everyone, pardon the pun – at least for right now.
"We've always believed that for us to win, no one has to lose," said Nick Papas, director of public affairs PR at Airbnb, in the AdWeek article. "Hospitality is a large, growing market, and we think there's a place in this market for everyone."
Despite the fact that Airbnb hasn’t made a dent in hotel’s bottom lines, they are laser focused on catering to the millennial generation, which they see as the future of their livelihood.
"We did tons of research to find out what millennials wanted, and the ideas of authenticity and communal spaces were very important. The idea is to create a living room where you can hang out with people and also always be plugged in," Vicki Poulos, global brand director of Moxy Hotels, told AdWeek. "It's like a boutique hotel that has the social heart of a hostel. That's why people stay at an Airbnb, so we built a brand that had that same communal spirit."
What else are hotels changing for millennials? Find out here.
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