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Hotels and Accommodations - US - May 2017

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Figure 1: Total US revenues and forecast of travel accommodations, by segment, at current prices, 2011-21
The issues
Modern hotel amenities are of less interest to older travelers
Figure 2: Interest in modern hotel amenities – TV and tech, by age, March 2017
Price-sensitive travelers only want to pay for the basics
Figure 3: Attitudes toward hotels and other accommodations – price items, by household income, March 2017
More-frequent travelers have more favorable opinions of home shares
Figure 4: Attitudes toward home-sharing rentals, by travel frequency segments, March 2017
The opportunities
Online reviews – whether positive or negative – influence younger travelers
Figure 5: Influences for hotel vs home rental or home share stays – good online reviews, by age, March 2017
Amenities and reviews are important to young women
Figure 6: Influences for hotel stays – select items, by gender and age, March 2017
Home rental/home sharing services attract young travelers
Figure 7: Used a home rental/home share, provides a better overall experience, by age, March 2017
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Robust growth for travel accommodations over the past five years
All segments growing, hotels and motels are dominant
Outside players, consolidation shake up the hotel industry
Consumer confidence at odds with business travel forecast
MARKET SIZE AND FORECAST
Hotel and accommodations growth outpaces total spending growth
Figure 8: Total US revenues and fan chart forecast of travel accommodations, at current prices, 2011-21
Figure 9: Total US revenues and forecast of traveler accommodations, at current prices, 2011-21
MARKET BREAKDOWN
All segments of the hotels and accommodations market show growth
Figure 10: Travel accommodations revenues, by segment, at current prices, 2014 and 2016
Hotels and motels account for 72% of the market
Figure 11: Total US retail sales and fan chart forecast of hotels and motels (excluding casino hotels), at current prices, 2011-21
Accounting for one quarter of the market, casino hotels grow modestly
Figure 12: Total US retail sales and fan chart forecast of casino hotels, at current prices, 2011-21
RV parks, other accommodations are small but fast-growing players
Figure 13: Total US retail sales and fan chart forecast of RV parks and recreational camps and other accommodations, at current prices, 2011-21
MARKET PERSPECTIVE
Retailers and lifestyle brands enter the hotel scene
Hotel loyalty programs continue to update and upgrade
Figure 14: Hotel loyalty programs, by estimated number of members, April 2017
Big brands get bigger with consolidation and new developments
Figure 15: Largest hotel groups (global), properties, brands
Home shares and peer-to-peer rentals gaining ground
MARKET FACTORS 
Consumer sentiment at highest level in more than a decade
Figure 16: Consumer Sentiment Index, January 2007-April 2017
Domestic business travel growth slows, international arrivals may suffer
Millennials seen as key to growth . . . but don’t forget the Baby Boomers
Figure 17: Population, by generation share, 2017
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Acquisitions makes big brands even bigger
Airbnb reigns as social media king
Experience above all
Legislation, regulation, and cybercrime, oh my!
Hotel brands look to get smarter and more socially responsible
LEADING COMPANIES
AccorHotels
Best Western International
Choice Hotels International
Hilton Inc.
Hyatt Hotels
InterContinental Hotels Group (IHG)
Marriott International
Wyndham Hotel Group
Airbnb
SOCIAL MEDIA BREAKDOWN
Hotels may need to revamp their social media to boost engagement
Figure 18: Social media terms and definitions
Airbnb dominates social media landscape . . .
Figure 19: Cross-channel posts over past year, by accommodations brand, April 2016-17
. . . and boasts the highest engagement per post among lodging brands
Figure 20: Cross-channel engagement totals over last 12 months, April 2016-17
Airbnb’s and W Hotels’ content is more than just about its hotels
Figure 21: We Accept | Airbnb
Figure 22: Cross-channel engagement rate over last 12 months, April 2016-17
WHAT’S WORKING?
Accommodation brands invest in experiences
Large hotel chains emulate smaller, independent boutiques
Lodging brands join the home share market with luxury rental brands
Direct booking wars
Figure 23: How to Land a Job with Grace Helbig, August 2015
WHAT’S STRUGGLING?
Legislative changes could mean a decline for hotels
Hotels trying to understand Millennials
Figure 24: Hilton and IBM pilot “Connie,” the world’s first Watson-enabled hotel concierge, March 2016
Hotel chains struggling with cybercrime attacks and data breaches
WHAT’S NEXT?
First came pop-up stores. Are pop-up hotels next?
From soap to food, hotels look to reduce waste
Hotel subscription services
Invisible service may help travelers truly live like locals
Hotel brands compete to see which is the smartest
THE CONSUMER – WHAT YOU NEED TO KNOW 
Travelers are most likely to stay at hotels, namely midscale and upscale
Hotels are more positively perceived than home shares/rentals
Good past experiences are key for future stays at all accommodations
Streaming services and smart TVs are most desired services at hotels
Travelers want adventure, but not from their accommodations
Frequent travelers are most open and positive about home shares
ACCOMMODATIONS USED IN THE LAST 12 MONTHS
Eight in 10 traveled overnight in the past year
Figure 25: Overnight travel, by key demographics, March 2017
91% of past year travelers have stayed in a hotel
Figure 26: Accommodation types used, March 2017
Figure 27: Stays at hotels vs hotel alternatives – count of stays, March 2017
Young men use more diverse types of accommodations
Figure 28: Accommodation types used – select items, by gender and age, March 2017
Hotel stays correlate with income, hotel alternatives used by all
Figure 29: Accommodation types used, by household income, March 2017
Most stayed at brands are Best Western, Marriott, and Hampton Inn
Figure 30: Hotels used in the previous 12 months, top 10 hotels, October 2015-November 2016
PERCEPTIONS OF HOTELS VS HOME RENTALS/HOME SHARES
Travelers view hotels far more positively than home rentals/home shares
Figure 31: Perceptions of hotels vs home rentals/home sharing, March 2017
Hotels have stronger advantage for security, reliability among women
Figure 32: Perceptions of hotels vs home rentals/home sharing – Hotels better, by gender, March 2017
Young travelers more positive about home rentals/home sharing
Figure 33: Perceptions of hotels vs home rentals/home sharing – Hotels better, by age, March 2017
INFLUENCES FOR HOTELS AND ALTERNATIVES
Past experience tops list of hotel influences, price for non-hotels
Figure 34: Influences for hotel vs home rental or home share stays, March 2017
Hotel guests consider much more than physical offerings
Figure 35: TURF Analysis – Influences for hotel stays, March 2017
Reputation and service influence young men, women consider amenities and reviews
Figure 36: Influences for hotel stays – select items, by gender and age, March 2017
High earners prioritize past experiences, consistency, loyalty programs
Figure 37: Influences for hotel stays – select items, by household income, March 2017
Cost, good past experience yield greatest reach for home share/rentals
Figure 38: TURF Analysis – Influences for home rental or home share stays, March 2017
Women more likely to consider cost, convenience, getting just what they want
Figure 39: Influences for non-hotel stays – select items, by gender, March 2017
Online influences and unique properties/location impact younger travelers
Figure 40: Influences for non-hotel stays – select items, by age, March 2017
INTEREST IN MODERN HOTEL AMENITIES
Tech innovations related to entertainment inspire interest at hotels
Figure 41: Interest in modern hotel amenities, March 2017
Younger travelers who have stayed at a hotel are most attracted to modern offerings
Figure 42: Interest in modern hotel amenities – select items, by age and gender, March 2017
Multicultural guests most interested in in-room entertainment upgrades
Figure 43: Interest in modern hotel amenities – TV items, by race and Hispanic origin, March 2017
ATTITUDES TOWARD HOTELS AND OTHER ACCOMMODATIONS
Travelers want adventure, but not necessarily from their lodging choice
Figure 44: Attitudes toward hotels and other accommodations, March 2017
Young travelers have most optimistic view of home sharing
Figure 45: Attitudes toward hotels and other accommodations – home-sharing items, by age and gender, March 2017
Amenities may not be enough to attract travelers, especially low earners
Figure 46: Attitudes toward hotels and other accommodations – price items, by household income, March 2017
Parents embrace local culture, but stick to “touristy” activities
Figure 47: Attitudes toward hotels and other accommodations – local immersion items, by parental status, March 2017
TRAVEL FREQUENCY SEGMENTS
Figure 48: Travel frequency segments, March 2017
42% of Ultra Travelers stayed at a non-hotel accommodation last year
Figure 49: Stays at hotels vs hotel alternatives, by travel frequency segments, March 2017
Travel frequency impacts sentiment of overall experiences
Figure 50: Perceptions of hotels vs home rentals/home sharing, overall experience, by travel frequency segments, March 2017
Good past experiences, brand reputation, and consistency are key
Figure 51: Influences for hotel stays – select items, by travel frequency segments, March 2017
Frequent travelers want efficient processes and wellness services
Figure 52: Interest in modern hotel amenities, by travel frequency segments, March 2017
Home shares and home rentals are a sweet spot for frequent travelers
Figure 53: Attitudes toward hotels and other accommodations, home share and home rental items, by travel frequency segments, March 2017
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
TURF methodology
APPENDIX – THE MARKET 
Figure 54: Total US revenues and forecast of traveler accommodations, at inflation-adjusted prices, 2011-21
Figure 55: Total US revenues and forecast of traveler accommodations, by segment, at current prices, 2011-21
Figure 56: Total US revenues of traveler accommodations, by segment, at current prices, 2014 and 2016
Figure 57: Total US revenues and forecast of hotels & motels, at current prices, 2011-21
Figure 58: Total US revenues and forecast of hotels & motels, at inflation-adjusted prices, 2011-21
Figure 59: Total US revenues and forecast of casino hotels, at current prices, 2011-21
Figure 60: Total US revenues and forecast of casino hotels, at inflation-adjusted prices, 2011-21
Figure 61: Total US revenues and forecast of RV parks and recreational camps & Other accommodations, at current prices, 2011-21
Figure 62: Total US revenues and forecast of RV parks and recreational camps & Other accommodations, at inflation-adjusted prices, 2011-21

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