U.S. Occupancies Reach All-Time High, but Airbnb Nips at the Edges

The hotel industry is stronger than it’s ever been, with U.S. occupancy rates an all-time high of 65.8% in 2015, PKF Hospitality Research president Mark Woodworth said at The Hotel Experience (HX) trade show in New York.

But sharing-economy companies like Airbnb are having an impact in several markets. Airbnb already is a force pushing down rates in cities like New York, where rates are 17% below their pre-recession peak, he said.

Woodworth noted in particular that an increasing number of Airbnb hosts now control multiple accommodations and bring a more businesslike approach to the segment—making it more of a threat to traditional hotels.

Also at the show, Rafat Ali, CEO of Skift, the travel information site, said “the messaging economy” is coming to dominate communication, and predicted that travel brands will be looking for ways to use that channel.

Where Facebook and Twitter do not allow for two-way conversations, people are moving to messaging on Snapchat and WhatsApp.

“Brands may not be using messaging for transactions but they could become sources of information through that platform,” he said.

–Harvey Chipkin