Another major threat comes from home-sharing companies, like Airbnb, Inc., which offer digital service allowing travelers to book homes at holiday destinations. With lower overhead costs and far less regulations than what hotel companies have to comply with, these firms have made steady inroads into the industry and are grabbing share from giants like Marriott International, Inc. (MAR) and Hilton Worldwide Holdings Inc. (HLT).
The Nasdaq report discusses ways to drive growth, such as renovations and better marketing to millennials--which is all well and good and true--but doesn't so much as mention food and beverage. It's not surprising that the numbers-driven solutions fail to consider a key emotional driver of hotel business.
I think focusing on service and F&B satisfaction is hoteliers' best tool to sway travelers away from home-sharing. Sure, the better Airbnb hosts will leave out amenities or perhaps even stock the fridge. But it's just not the same experience as hotel F&B, from room service to hotel restaurants that make the effort to bring local flavors to the table on-property. In 2018, I encourage you to look more closely than ever at how you can offer something more than not only your hotelier competitors but also alternative lodging. I believe that if you build F&B into something special, they will come.