Published By : 07 Jun 2016 | Published By : QYRESEARCH
In the tourism and hospitality industry, hotels play a pivotal role. The performance of the industry directly impacts the growth of the global hotels market. With an increase in number of consumers spending more on travel for business and leisure, the hotels market is anticipated to witness positive growth in the coming years. The growing expenditure on the travel and tourism sector has boosted the growth of the global hotels market. Segmented offerings from major players in the market, coupled with the rapid growth of the tourism industry will also support the growth of the market in the coming years. However, unstable political environment and natural disasters are anticipated to restrain the market’s growth. The overall market has a huge scope of growth in the luxury hotels segment.
Surprisingly, Hotels are Accepting Airbnb Now
The introduction of Airbnb in 2008 by Brian Chesky invited the ire of the hotel industry. Airbnb lets people find, list, and rent lodgings. The hotel industry had blamed that the Airbnb business represents unfair competition by not paying room occupancy taxes. Safety standards similar to hotels are not maintained in the lodgings listed by Airbnb. However, lately, hoteliers are learning to co-exist with Airbnb. Christopher Nasetta, the Chief Executive of Hilton Worldwide has stated that there is a growing possibility of hoteliers co-existing with Airbnb. Similar thoughts have been conveyed by Arne Sorenson, the Marriott International Chief. The home-sharing business of Airbnb is being increasingly seen as a less potent rival. Entrepreneurs are building micro hotels that are competing with the established players in the hotel industry. These micro hotels are residential units that are used as an investment instead of primary homes.