Is Alternative Accommodation a Boon for the Travel Industry Post COVID-19?

2020 has been a year of unforeseeable, unexpected and sudden changes – the global pandemic wrecked the travel industry and shook it to its core leaving many small and medium-sized businesses in the dust. However, as it’s said, a rising tide lifts all boats, similarly, a new segment in the travel industry is taking shape at par with this pandemic. This new segment is called alternative accommodation, a quaint market that had been quietly taking shape over the years is showing enormous potential today. Today, travel enthusiasts are looking at safer options for travel and this need has given rise to alternative accommodations, a growing trend. That is the reason we decided to take this deep dive into alternate accommodations and the way it is transforming the modern travel and hospitality landscape through its innovative new strategies even during a global pandemic.

What are Alternative Accommodations?

The rapid development of transportation and communication technologies, improvements in the distribution of income, and expansion of the right to vacation to the masses are growing the tourism market all over the world. The demands are diversifying and different sub-markets that address the increasingly varied understandings of vacation and accommodation are emerging in the growing tourism market. While economic package tours, mass tourism, and demands for accommodation that meets these trends are on the rise, individual pursuits that are completely outside of this, those of whom do not prefer mass tourism have also increased.

These services are heavily dependent on online communities. They are those types of accommodations that are available outside of any formal or organized accommodation sector like hotels. They can be small homes, or private houses, which are excellent for budget travel options. If you are still wondering what it is, think about Airbnb. Airbnb is having a long past relationship and deep roots in the alternative hospitality world. They grew this kingdom of alternative accommodation. Alternate accommodation meets the demands of travellers who primarily travel for cultural tourism; the desire to rent a home, condominium, etc., within the historic fabric of the city they visit; prefer to shop around just like the locals of the destination, and often meet their own travel needs individually. In its most general definition, alternate accommodation is the short-term rental of homes to travellers who want to organize their own trips. Short-term rentals which have become the accommodation style of more than 5 million people in the world with the rapid development of the tourism sector has become somewhat of a mainstream concept during this global pandemic. This branch of tourism was making the guests feel as though they are local even if it be for a few days is growing all over the world due to the certain challenges faced by hotels and regular accommodation providers during a global pandemic. Now that we have a better understanding of alternate accommodation, let’s look at the reasons behind their sudden emergence in mainstream culture during COVID-19.

Why Alternative Accommodations are becoming so popular post-COVID-19?

The travel industry is not the same post coronavirus pandemic. Safety is now a priority for everyone, even those working in the hospitality sector. Recently in an interview with Skift, Forgel, the CEO of Booking Holdings, mentioned:

“Since the travel restrictions got lifted, we are witnessing a shift in consumer behavior. About 40% of the new bookings that we got are for alternative accommodation which is a small house or private home or even a bungalow by the beach wherein the consumer does not need to share the place with anyone. We are anticipating that even after the Covid is over, people will still prefer alternative accommodation to regular hotels as their choice of stay”

The stats clearly show that Leisure travellers are looking at small homes and private houses as their stay option rather than opting for hotels that are still considered unsafe. Alternative accommodations are much safer than the typical stays at hotels since they provide a much more controlled environment.

Even Vipul Prakash, group chief operating officer of MakeMyTrip said: “The diversified offerings from the hospitality industry in terms of alternative accommodation options are playing an important role in meeting the evolving demands of travellers. The results of this study show how this segment is gradually gaining a strong foothold in the market.”

Here are highlights which shows how alternative accommodations are proving to be a phoenix for the travel industry:

1. Remote working with longer stays: Today remote work is the new normal, longer stays have become more common to avoid face to face interactions. So alternative accommodation is the best option for longer contactless stays.

2. Less occupancy: Alternative accommodations are mostly having less occupancy as compared to hotels. So, there is less chance for the spread of the virus.

3. Budget-Friendly: If you are looking for a long stay at a budget-friendly price then alternative accommodation is the best option for you. They are suitable for long business trips. They cost an average of about 40% less than upscale hotel options.

Post-pandemic, the alternative accommodation market is drastically growing, taking away the market share of traditional accommodation providers, such as hotels and hostels. So, if you are looking for a safer option for your next trip, then alternative accommodations are your perfect partner in that regard.