Business View Magazine | January 2020

11 BUSINESS VIEW MAGAZINE JANUARY 2020 ALTERNATIVE ACCOMMODATIONS LIKELY TO BRING CONTINUED DISRUPTION TO HOTEL INDUSTRY IN 2020 T he alternative accommodation business is a significant hotel industry disruptor and is becoming increasingly institutionalized characterized by sophisticated revenue management, multi-unit management companies, and talks of IPOs. According to MaryJo Finocchiaro, Executive Vice President and Chief Financial Officer for BRE Hotels & Resorts, “The alternative accommodation trend is expected to continue to grow but facing headwinds with the threat of expanding regulation on the horizon.” Finocchiaro noted that the data regarding home-sharing growth is evident. “Demand for alternative accommodation is up 35 percent year over year, while U.S. hotel demand is up only two percent.” She continued, “While home- sharing was initially launched to focus on the budget-conscious consumer with modest annual income, the paradigm has changed dramatically. According to Skift, 50 percent of affluent consumers have stayed at a short-term vacation rental. What’s more, preference for a traditional hotel room drops from 78 percent to 44 percent once an individual has enjoyed an alternative accommodation, linking a positive home-sharing experience to repeat loyalty business.” Airbnb, Vrbo, and HomeAway are the principal competitors in the industry but Finocchiaro noted that Airbnb is the dominant frontrunner. “Airbnb leads the alternative accommodation industry. They are planning to launch their OPENING L INES