There's been some big doings in the hotel industry lately.
The sector got seriously disrupted when Airbnb (ABNB) -) came on the scene in 2008 and allowed people to rent out their homes to travelers, providing a flexible alternative to hotels.
DON'T MISS: Tesla employees share a major hint that the Cybertruck is about to launch
Particularly for stays of over a month, the 20% to 30% discount offered by many homeowners turned some into "Airbnb converts" who were able to both save some money while also feeling as if they were better connecting with local culture.
Airbnb has more than six million active listings worldwide.
So hotels decided to get in on the act by getting into the vacation-home business.
Examples include Homes & Villas by Marriott Bonvoy, Accor's Onefinestay (ACCYY) -) and Mandarin Oriental Exclusive Homes. (JMHLY) -)
Offering short-term rentals
Hyatt Hotels (H) -) wants a piece of that action.
The Chicago hospitality company plans a new short-term vacation-rental platform, Homes & Hideaways by World of Hyatt, that will feature private homes and remote hideaways in the U.S.
The offering is expected to launch in the coming weeks, the company said on Sept. 28.
World of Hyatt members will have direct booking access to a collection of short-term private home rentals from beachfront escapes to mountainside ski chalets, where they can earn and redeem points beyond the traditional hotel stay, the company said.
“We are committed to evolving access to the type of accommodations World of Hyatt members are seeking that go beyond our hotels – from a large family who travels together or guests looking to work from anywhere for an extended period of time,” Amy Weinberg, Hyatt’s senior vice president for brand, loyalty and data, said in a statement.
Lowe, formerly Lowe Enterprises, a Los Angeles firm that invests in, develops and manages real estate, said it had acquired Hyatt’s vacation rental management business.
Airbnb is facing challenges
Things have changed somewhat since Airbnb's early days.
Between 2019 and 2023, the price for the average Airbnb rose by 36% while prices across major hotel chains such as Hilton and Marriott (MAR) -) rose only 12.8% and 7.8% respectively during the same period.
A study by the U.K.-based travel consumer watchdog Which? found that hotels are cheaper than an equivalent one-bedroom apartment on Airbnb or peer short-term-rental provider Vrbo in 38 out of 50 destinations popular among travelers.
Airbnb called the data "flawed" and said that it "overstates prices on Airbnb, and compares standard hotel rooms to entire places."
The company also has problems in New York.
Under a new ordinance, rentals shorter than 30 days are allowed only if hosts register with the city, commit to being physically present in the home for the duration of the rental and share living quarters with their guests.
Airbnb has said the new rules amount to a “de facto ban” on the platform and Chief Executive Brian Chesky said he was saddened and disappointed by the city's decision.
However, he said the company is now looking to Paris and other European locations
Chesky traveled to Paris to help the city plan for what is expected to be a big surge of tourists for the 2024 Olympics.
Get the smart plays to grow your portfolio. Join TheStreet® | SMARTS and take $10 off the original price!
