News

News

Airbnb Becoming a (Big) Factor for Canadian Hotels

June 27, 2016

airbnb-local-recommendations

Airbnb Becoming a (Big) Factor for Canadian Hotels 

HLT recently collaborated with Ryerson University’s School of Hospitality and Tourism Management to study the impact of Airbnb on Canadian hotels. Presented to a standing-room only audience at the Canadian Hotel Investment Conference, the study found that Airbnb accounts for up to 5% of total demand in major Canadian cities such as Vancouver and Toronto. And the growth trajectory is very steep indeed.

However, as with the discussion on OTA’s more than a decade or so ago, our industry is rife with deniers. In fact, as recently as Q1 of 2016, one of our competitors told a major Canadian industry association that Airbnb’s impact had been, and was expected to be, negligible. Well…it’s not. And the impact in the future is set to increase. Airbnb is neither a product nor a brand, Airbnb is a delivery “channel” and a channel with lots of upside (or downside, depending on your point of view) given the ease with which new supply can be added. Airbnb is the very model of a disruptor.

Canadian hoteliers as well as municipalities/provinces need to wrap their minds around this potentially significant disruptor. Deniers be warned!

 

Download Report Here