REDONDO BEACH, CA--(Marketwired - Oct 25, 2017) - SECFilings.com, a leading financial news and information portal offering free real-time public company filing alerts, announces the publication of an article covering the Alternative Lodging Industry as a whole and the unique approach of The Monaker Group Inc. (
Hotels have long been the mainstay for travelers, but the rise of Airbnb has forever changed the industry. The number of U.S. travelers who have used private accommodations has risen from less than 10% in 2010 to more than 30% just five years later, according to Phocuswright . With a $31 billion valuation, the startup has already surpassed every hotel chain except Marriott International Inc. and has done so while making a profit each year.
Alternative Lodging is Cannibalizing Hotels
The global hotel industry is expected to generate more than a half trillion dollars worth of revenue next year, according to Statista , representing a 6% compound annual growth rate over the past eight years. Technavio forecasts that the global Alternative Lodging Rentals market (ALR) will grow at more than 7% to $193.9 billion by 2021, but remains in its infancy with only about 15% market penetration in 2016, suggesting that they will cannibalize hotels.
The growth is largely attributable to consumer demand for unique experiences when traveling, as well as the conveniences of homes versus hotel rooms. Airbnb Experiences promotes the idea of "traveling like a local" with more diverse itineraries than simply hopping a bus tour to the Colosseum. When staying in a local's own home, you have access to their lifestyle and can experience the world through their eyes rather than a visitor's eyes.
The key barrier with many ALR products, like Airbnb, is that they aren't integrated into online travel agent (OTA) solutions, like Expedia Inc. or Kayak. These OTAs are often used by consumers to book airline tickets, but upsell these customers on hotels, car rentals, and other travel services. In essence, it's the 60% to 70% of the population that hasn't stayed at a private accommodation when traveling.
Hotels have also responded to these trends in several ways. Marriott began placing its time shares into general inventory in some markets, like Orlando, Florida, while its Moxy Hotel business has evolved with open floor plans and communal spaces. Many other hotel changes have made similar moves designed to compete in the ALR market with more unique properties, as well as hotel concepts that are more closely tied to specific target audiences.
Monaker Group's Innovative Approach
The Monaker Group Inc. (
The real-time booking is what sets it apart from competitors like Airbnb and HomeAway. While budget travelers don't need real-time booking, those planning business travel or luxury vacations are often seeking a more seamless experience. But more importantly, many OTAs and airlines require real-time booking to integrate with their platforms, which would open up an entirely new distribution channel for the ALR industry.
Through its extensive network, the company has already contracted more than one million properties (with two million more in the pipeline) that it delivers to its B2B partners' existing booking systems. Its innovative API (application programming interface) is designed to fit an industry standard format that makes it plug-and-play for many OTA platforms. This turns the company into an invaluable one-stop intermediary between property owners and distributors.
Monaker: 1,000,000 + 2,000,000 pending properties; 150+ countries; real-time booking; air, car, tour activities; $27M valuation.
Airbnb: 2,500,000 properties; 190 countries; limited real-time booking; limited air, car, tour activities; $31B valuation.
HomeAway: 1,200,000 properties; 190 countries; limited real-time booking; no air, car, tour activities; $3.9B valuation (acquired by Expedia).
For more information, visit the company's website or download their investor presentation .
Please follow the link to read the full article: http://analysis.secfilings.com/articles/194-f...sing-piece
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SECFilings.com Paul Archie 406-862-2242 parchie@secfilings.com
