New research by PriceLabs, a revenue management software provider, indicates a significant shift in traveller preferences, with 82% of guests who stayed at a B&B, inn, or small hotel willing to consider a short-term rental if the price is comparable. This trend highlights the diminishing distinction between traditional hotels and short-term rentals.
The study surveyed over 1,000 travellers across the US, UK, France, Spain, and Portugal. It found that independent hotels face nearly double the competition from short-term rentals compared to larger hotel chains. Specifically, 30% of guests who booked a B&B or small hotel also considered a rental for the same trip, compared to 16% for large hotel guests.
Booking platforms play a crucial role in this trend. On sites like Booking.com, which list both hotels and rentals, 45% of guests compared the two, whereas only 29% did so when booking directly with a property. This suggests a growing opportunity for hoteliers to leverage platforms like Airbnb, which now includes hotel listings.
PriceLabs' data further reveals that hotel and rental prices are increasingly aligned. In locations like Mallorca and Barcelona, hotel and rental rates showed correlations of 94% and 84%, respectively, moving in tandem throughout the year.
Anurag Verma, Co-Founder of PriceLabs, stated, "For a long time, hotels and short-term rentals were treated as separate markets. Our research shows that many travellers stopped making that distinction some time ago." As this trend continues, it is vital for hoteliers to utilise tools like PriceLabs to navigate this evolving landscape.
This story was selected and published by a human editor, with content adapted from original press material using AI tools. Spot an error? Report it here.
