Hotel companies are getting into the private home rental market, spurred on by competition from the booming home-sharing industry.
Makarand Mody, assistant professor of hospitality marketing at Boston University, explains that hotels were "in a bit of denial," about competition from home-sharing companies like Airbnb, "Now, they see it’s the same travelers, just choosing different accommodations based on the occasion or situation. Adding private home rental is a way to capture more of the customers’ total travel spending," he says. Dr. Cathy Enz, professor at Cornell University’s School of Hotel Administration tells The New York Times that hotel companies are well-positioned in the private home rental sphere, with the framework and mechanisms in place to provide a "custom, authentic, local experience and the consistent services that hotel customers expect."
AccorHotels, which operates hotels and other properties in 100 countries, has entered the home sharing market over the past two years by acquiring companies already operating there. In 2016 it bought Onefinestay, which was founded in London in 2010 and rents upscale private homes and apartments. Accor has also purchased Squarebreak, which offers home rentals across a wider price spectrum, and Travelkeys, which manages vacation properties, like condominiums at beach resorts. The properties all offer check-in with a company employee, 24-hour support services, professional cleaning and hotel-style toiletries. Private home rental is complementary to hotel offerings, said Javier Cedillo-Espin, chief executive of Onefinestay.
