VIDEO: How COVID-19 is shifting the dynamic between hotels and short-term rentals

It’s been one of the most debated topics related to the impact of the COVID-19 pandemic on the travel industry: Do consumers put more trust in hotels or private rentals to provide a safe, sanitized accommodation? And which sector will be better positioned to attract travelers as the industry recovers? 

Initial data indicates an advantage to short-term rentals – a July analysis by STR and AirDNA showed that in the first few months of the crisis, rentals saw both less of a drop and a faster rebound in occupancy than hotels. Expedia Group CEO Peter Kern has touted Vrbo as leading his company’s bookings, and Airbnb is riding its recovery wave to an upcoming IPO.

Some say all of this is no surprise as leisure travel has come back first and as travelers have sought properties that allow them to isolate from others. But what will be the long-term impact, and how will both sectors of hospitality have to adapt to the new demands of travelers?

During the Phocuswright Europe 2020 event in September, a panel of industry leaders debated these topics in a discussion led by Phocuswright senior analyst and founder Lorraine Sileo. 

Participating in the panel were Patrick Andrae, co-founder and CEO of HomeToGo; Raj Kamal, CEO of OYO Vacation Homes; Henrik Kjellberg, group CEO of Awaze; Alexander Limpert, co-founder and CEO of GuestReady; Julie White, vice president, commercial for EMEA, of Wyndham Hotels & Resorts; and Jerome Wise, vice president for enterprise clients at TravelClick.