How The Big Hotel And Lodging Companies Respond To These Challenges Will Determine Their Future
You've probably stayed in major hotel chains like Hyatt, Marriott or Hilton over the years. When you make your decision about which hotel to stay in, you are probably trading off price against convenience and luxury level to figure out what works best on each trip. Like so much happening now in consumer products, new companies are being invented that blow up the paradigm consumers have long used to make their choices. Those new competitors can charge a price that generates a greater profit because they are offering something unique. In the case of these new hotel and lodging formats, they are offering an experience that traditional providers aren't competing with.
The first disruptors and threat to the existing lodging infrastructure were Airbnb, Homeaway and VRBO. What's so interesting about those companies now is how they are trying to expand from where they started by offering more than just accommodations. They are developing easy ways to facilitate what they call Experiences and Adventures, as well as connections to local restaurants in travel destinations. That's not just about expanding their business, although it's certainly that too. It's about giving consumers what they want: experiences when they travel.