"Airbnb is coming for our kids," hospitality and nightclub legend Ian Schrager has cautioned the industry in a major speech this week.
When asked if hotels should be worried about the home sharing economy, Schrager notes that while the "gloves have come off" for some big hotel brands, overall the industry needs to stop being in denial about the disruption.
Subscribe to our newsletter below
The founder of Studio 54 and the iconic Paramount and Royalton hotels was addressing property owners at the annual Expedia Partner Conference in Las Vegas.
"Fighting for legislation [around home sharing apps] will perhaps delay them, but it won’t stop them," he says. "We have to focus on the hotel as a distinct product."
The hotel industry is a product-centric industry, he adds, and that as product gets better, people benefit from it. His own new Public hotel in New York City, for example, offers high-end amenities at reasonable prices, making its offerings accessible for many consumers.
To distinguish from the likes of Airbnb, one area hotels should focus on is communal spaces, which can’t be replicated in home shares, Schrager argues.
"Disruptive things come along and we have to adjust the model, or else it’s going to be yesterday’s news," he says.
Fighting for legislation will perhaps delay them, but it won’t stop them. We have to focus on the hotel as a distinct product.
Ian Schrager
So what else does the hotel of the future look like? And is there a fear of dehumanizing the experience as tech advances?
"The issue isn’t dehumanizing,” Schrager says. "The issue is the wizardry of tech. If it’s easy and makes it fun [people will use it.]"
On the way out, according to Schrager, are room service and the front desk. With tech, "you can do everything without wasting time to get from one department to the other. It’s the absolute future.
If there’s one area where hoteliers should put their tech budget, it’s at the check-in process.
He claims: "People want to get up to the room as fast as possible; they don’t want a glass of champagne."
* This reporter's attendance at the event was supported by Expedia Inc.