Hotels are slowly gaining ground over short-term rental units as more
and more people took to travelling in the last few months, according to
STR’s latest hotel performance report.
Its data showed that 51% of travellers for an upcoming or recently
undertaken trip selected a hotel as their top choice in July 2022, which
is four percent more than the same period last year.
“Indeed, since July 2021, most travellers have opted to use hotels,
which signals strong underlying interest in this traditional form of
accommodation,” the report stated.
However, a slight decline in hotel engagement in July 2022 was detected compared to May 2022 (56%).
But STR said this could be related to seasonal travel patterns where
customers choose different accommodations, such as camping and
caravanning, or participated in other type of trips compared to those
earlier this year.
For leisure trips though, hotels were less preferred than short-term
rentals, suggesting that although there has been some progress in hotel
preference since May, there is ground to regain yet.
Released early September, the findings generally show a positive
trajectory for travel. Thus, understanding consumer preferences and
actual behaviour regarding choosing accommodation and destinations is
crucial intelligence to enable more effective marketing.
Accordingly, STR’s data revealed that urban destinations continued to
intrigue travellers as nearly half of those surveyed booked such trips.
In fact, those who selected those destinations were “far more likely”
to pick hotels as their accommodation choice, as opposed to rural
destinations where short-term rentals were more appealing.
“Hotels are more common in urban destinations while short-term
rentals are more often found in rural destinations. Nonetheless, the
analysis reveals an important link between urban destinations and hotel
performance recovery,” STR said.
Having said that, the report highlighted that countryside
destinations continue to pique travellers’ interest as outdoors trips
were higher than other trip types.
Meanwhile, full-service hotels, which are defined by STR as having
multiple facilities onsite, including restaurants, are in “high demand”.
“Leading the way as the most popular hotel type, this property type
has grown in favour recently. This is likely due to a shift in needs as
consumers, eager to make up for lost time after restrictions, seek
additional levels of service and comfort,” it wrote.
As for smaller hotels with less than 50 rooms, surveyed travellers
found them to be appealing in the current environment, possibly due to
“lingering concerns and increased desire” for personal space as a result
Conversely, limited-service hotels, as the name suggests, are the
“least sought-after” type of hotel, currently, the report stated.