The structure of the accommodations industry has remained relatively unchanged for over half a century; the product has evolved, followed trends and absorbed technology, though due to the capital nature of the business, generally, it has been slow to do so. Meanwhile, the growth of tourism has been unrelenting driving, demand for accommodations. The exponential rise in strength of booking.com and Airbnb over the past decade has significantly disrupted the industry, triggering adaptation and innovation. With the application of rapidly emerging technology, further fundamental changes in the structure of the accommodations sector are evident.
The main drivers for change in the accommodations sector include:
- Low-cost Travel: Travel was considered a luxury, low-cost airline & coach carriers, advance/offpeak rail, and vehicle sharing drive considerable increases in tourism volumes and opened up more comprehensive travel opportunities to different socioeconomic groups with diverse accommodation desires
- Booking Platforms: The trust created by large cross-market OTAs, homestay and mega search platforms combined with bank and internet payment systems and review sites, provides confidence to utilise diverse accommodations
- Technology: Smartphones, social media, AI and potentially blockchain, are changing how accommodations are marketed, transactions are made and experiences managed
Product & Distribution Change
- Consolidation of Hotel Operators
- Co-working Space
- Experiential Travel
- Homestay Lodging
- Hostels
- Online Travel Agencies (OTAs)
Technology Change
- Artificial Intelligence
- Blockchain
- Edge Computing / Cloud
- Internet of Things
- Social Media
Global Environmental Issues