4 Ways Startups Disrupted the Hotel Industry
With several beaches and highly sought after vacation sites, Florida hotels should be sitting pretty. However, innovative startups like Airbnb have gouged a considerable chunk out of the hotel industry’s profits. As a result, many states are pushing back against the newcomer, throwing various laws in its path. Even so, if history is any indication, innovation will continue and the hotel industry will need to implement several changes to remain relevant.
The following are several ways startups have changed how hotels run their businesses as well as what to expect in the near future:
- More competitive pricing. Airbnb is largely behind this change. With millennials growing more money-conscious, they’re less willing to pay standard hotel fees. For example, a college student on holiday over summer break would much rather spend $50 a night for a room on Airbnb than $100-$150 for a hotel room. As a result, hotels have had to hustle and find ways to offer economy lodging while still turning a profit.
- Optimized pricing. In response to the above challenge, hotels are shifting how they price out their rooms. Factors that affect demand such as the season, local events, and the weather can increase or decrease the cost of a room. For example, hotels along Florida’s coast may drop their room prices during forecast periods of rain while increasing them during popular events. More and more, hotels are relying on data to make decisions regarding their pricing.
- Room options that match travelers’ needs. Large families often have a hard time booking hotel rooms together. It can be difficult to enjoy a vacation when various family members are strewn across numerous floors or down the hall from each other. Airbnb excels in this area as families can rent out an entire home with numerous rooms to ensure they maximize their vacation time together. Hotels will need to address this issue to remain competitive.
- Cultural immersion. Hotels struggle to compete with startups in this arena as they can’t offer authentic meals or local connections. Millennials often want to experience life as locals do during their travels, and hotels will need to find ways to provide that environment.
With schools on the verge or releasing students for summer break, Florida hotels need to be ready for the summer season. While the industry scrambles to keep up with shifting customer expectations, hotels also need to keep their risks in mind. The experts at MMA Florida are intimately familiar with the difficulties hotels encounter and we strive to provide services to ease these burdens. Contact us to learn how we can help your business.