To compete with or embrace homesharing is key question that often reverberates around the C-suite at major hospitality providers these days.
According to a recent Skift article, many hotel CEOs are still on the fence about embracing this new business paradigm, especially when looking at the short-term track record of efforts like Onefinestay and Oasis.
Rather than embracing homesharing, many hospitality providers are trying out new tactics, which include everything from mood lighting to “name-your-rate” pricing. The latter would allow guests to ask for a lower rate at checkout if they feel that they stay did not align with their expectations.
In addition, some believe that automated, tech-driven micro-hotels will be the answer to competitive homesharing offerings. Hilton is dipping its toes into these waters with its Motto brand, which will offer smaller, customizable rooms that only appear in urban locations and have more affordable rates.
This all begs a bigger question, which is what lens do traditional hospitality view their business models? It is always critical to remember that hotels are essentially places to sleep – meaning a facility/property/building with guest rooms.
With this in mind, building a dynamic brand overall is no small challenge, let alone trying to get into the homesharing business. As such, it’s always important to remember that a hotel is essentially a concrete box in the sky where people sleep.
Time will tell if hotel leaders further embrace homesharing. However, with operational challenges – from outsourcing maid services and property management – this means completely breaking away from the traditional hotel business model.
Based on the recent Skift article, it seems that the jury is still out, and it may be best to stick with what hospitality leaders know best – selling and marketing their current properties by providing the best guest experiences.