Growth in the use of shared accommodation is outpacing its traditional rivals, despite new hotel developments adding thousands of new rooms to the Australian market in 2017, a new report shows.
In Australia in 2017 the number of nights in which guests used shared accommodation, such as Airbnb and Stayz, surged by 9.6 per cent, while nights at conventional hotels grew by 5.6 per cent, Deloitte Access Economics’ Tourism and Market Outlook found.
Yet guests were spoiled for choice with 5500 new hotel rooms and serviced apartments delivered in the same period – an uplift of 2.3 per cent to total stock.
Adele Labine-Romain, Deloitte’s national tourism, hospitality and leisure leader, said shared accommodation had been growing faster than traditional hotels in the past few years, and different factors were at play behind this.
“Certainly, the sharing economy growth is higher than the traditional economy,” she said.
“In parts of the market, the shared economy has actually facilitated a visitor economy where there wasn’t sufficient traditional supply. In other cases, we’ve had anecdotal feedback that having the sharing economy options has tempered the really high spike in terms of room rates that the hotels were able to command in the past.”
Ms Labine-Romain said business travellers were driving the growth of hotel stays in the domestic market, while the surge in shared accommodation rentals was coming from those visiting friends and family on holiday. This was similar for international travellers who were opting for sharing platforms over stays with friends and family.
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Source: Commercial Real Estate