The Alternative Accommodation Market is Embracing the Trend of Personalization

The global alternative accommodation market consists of short-term rentals of private homes, apartments or rooms. Some of the most popular forms of alternative accommodation include homes, apartments, villas, cabins, beach houses and other unique spaces that are rented out anywhere from a night to several months. With platforms like Airbnb, VRBO and HomeAway, property owners have an easy way to share their extra space and earn additional income by renting to guests. Guests appreciate the more home-like experience and amenities compared to traditional hotels. The market offers options that are often more affordable as well as opportunities to live and travel like a local in attractive destinations worldwide.

The alternative accommodation market is estimated to be valued at USD 200.4 Bn in 2024 and is expected to reach USD 585.1 Bn by 2031, growing at a compound annual growth rate (CAGR) of 16.54% from 2024 to 2031.

Key Takeaways

Key players operating in the Alternative Accommodation are Airbnb, Expedia Group, Booking Holdings, TripAdvisor and other independent property owners. The rental of alternative accommodations gives property owners an additional revenue stream and allows them to share their unique spaces with travelers from around the world.

The Alternative Accommodation Market has witnessed significant growth over the past few years owing to the growing preference of consumers towards unique accommodation options over traditional hotels. Additionally, the ability to choose from a variety of listing types based on individual travel needs and budgets further drives the demand in this market.

Major online platforms for alternative accommodations have expanded globally with listings available across various cities and countries. The growing popularity of remote working and workingations have further aided the expansion of this market. Additionally, boutique chains have also mushroomed offering niche accommodations tailored to certain consumer interests. This has allowed travelers access to truly local authentic stays all over the world.

Market Key Trends

One of the major trends in the alternative accommodation market is personalization. Property owners are tailoring their space offerings to cater to special interests and experiences for guests. For example, some properties promote themes around cooking, art, wilderness, music etc. Personalized touches and local recommendations help enhance the visitor experience. Interactive platform features also allow guests to provide their preferences which helps hosts customize service. This trend is expected to grow further as travelers look for truly memorable accommodation choices.

Porter’s Analysis

Threat of new entrants: Low capital requirement for new startup and expansion of business model attracts new players in market. Bargaining power of buyers: Large buyer base and availability of substitutes increase buyer power in market. Bargaining power of suppliers: Alternative accommodation market has high dependency on property suppliers and management service providers for operations. Switching cost is low if suppliers don't meet buyer expectation. Threat of new substitutes: Emergence of new business models like hostels, co-living and hybrid accommodations pose threat to alternative accommodation market share. Competitive rivalry: Major players compete on basis of technology, portfolio, customer experience, branding and pricing to gain market share.

Geographical Regions

North America region accounts for around 35% of global alternative accommodation market value due to large network of hosts, high adoption of new trends, and business travels. USA and Canada are major revenue generators.

Asia Pacific region is fastest growing for alternative accommodation market driven by huge inbound tourism, rapid urbanization, increasing disposable income, and promotion of domestic tourism by governments in countries like India, China, Thailand and Indonesia. Travelers prefer affordable stays offered by alternative accommodations.

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About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)