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Hotels Try To Woo Business from Non-Traditional Competitors

Special Offers, Loyalty Benefits Help To Win Back Travelers from Airbnb

The outdoor courtyard is the scene of relaxation at the Ritz Carlton, San Francisco, which offers a variety of special programs to entice guests. (Ritz-Carlton)
The outdoor courtyard is the scene of relaxation at the Ritz Carlton, San Francisco, which offers a variety of special programs to entice guests. (Ritz-Carlton)

As Airbnb and other non-traditional properties have successfully competed for guests by offering attractive prices and more space for the dollar, hotels have had to step up their game and show off what makes them special to entice some of those guests back.

This includes adding more options to their frequent guest programs, enhancing other programs offered by the big brand names in the hospitality business and creating unique amenities. They also are promoting the consistent service that travelers expect at hotels.

"Guests staying at hotels look for a more consistent experience than available through Airbnb and other nontraditional accommodations," said David Sangree, president of Hotel & Leisure Advisors. "As an example, if the owner of the property of an Airbnb chooses to withdraw their property, the guest is left with no option and must start their search over. Since a hotel offers numerous rooms, it is rare that one is sent to another property because of overbooking."

Hotels have been able to attract more of these travelers from Airbnb by offering the same perks at similar costs with many more benefits, said Gabriel Ibarra, sales and marketing director at Mexico Grand Hotels.

"Of course, these days, everyone is looking for more than just price," he said. "Hospitality is one of the most critical aspects of the industry; besides that, guests are looking for flexible cancellation policies, quality, security and the guarantee of clean and safe spaces."

Jonathan Webster, vice president of lodging for Geronimo Hospitality Group, which owns and operates four boutique hotels in Indiana and Wisconsin, said his company offers a rewards points program, offering one point for every dollar spent and 100 points for every hotel stay. These type of programs, plus the variety of customer experiences and options, have always set hotels apart from non-traditional competitors.
The 139-key boutique Bottleworks Hotel reimagines what was once the world's largest Coca-Cola bottling plant in Indianapolis, and offers a lot of dining options which are normally not found in non-traditional accommodations. (Geronimo Hospitality Group)

"The personal touch that traditional hotels offer is still unmatched," Webster said. "These properties are implementing new, innovative ways to customize guest experiences, including personalized services like private in-room dining options, and in-house entertainment and dining choices conveniently located all in one mixed-use space."

Now more than ever, guests are looking for that all-encompassing experience and safety, he added. By providing various food, beverage and retail options in one space, guests can have luxury delivered at ease without ever having to leave the property or their room — something non-traditional lodging options can’t always offer.

Webster said that guests are increasingly prioritizing reliable Wi-Fi connectivity, cleanliness and convenience and ease when determining where to stay. For instance, all Geronimo properties are pet-friendly, something other non-traditional hotels can't always compete with. Properties are complete with in-house dining and retail options, 24-hour fitness centers, in-room Bluetooth speakers, and stocked mini bars.

In a city that commands high room rates and where hotels actively compete with all sorts of properties for guests, Stephen Power, general manager of the Ritz-Carlton, San Francisco, has begun implementing some unique programs as a way to stand out. Among these is the Silent Disco Yoga series. The twice-weekly experience welcomes hotel guests and locals alike to participate in "creative flow" and stretching while wearing headphones and listening to music on the hotel’s Zen-like outdoor courtyard.

Another new program, Respite Concierge, is helping change the notion that trips to cities need to be stressful and fast-paced. Respite Concierge has compiled a roster of experiences unavailable to travelers staying at Airbnb properties. They range from recreation and relaxation to retail therapy with VIP access and exclusive rates.

"Guests engaging The Ritz-Carlton, San Francisco’s Respite Concierge will enjoy private sailing excursions around the Bay and one-on-one Tai Chi sessions, personalized shopping experiences at Saks Fifth Avenue, soothing treatments at Nordstrom Spa and more," Power said.

Some Kimpton Hotels also are creating new offerings to stand out from the Airbnbs and others. Select properties nationwide are providing complimentary scooters for kids during their stay so families can explore city sights together by four or two wheels.

"Guests are unequivocally looking for more than just price. The experience is more important, especially after last year's restrictions and canceled plans. Guests want to use hotel amenities, as well as the benefits that elite members can get; whether it be mobile check-in services, lounge access, guaranteed rooms or flexible cancellation policies, price is just part of the package," said Dallas King, area general manager at R.A. Rauch & Associates.

Also, branded hotels have an advantage with loyalty rewards programs, cleanliness standards, and customer service. Consistency is critical and with the major brands, that is a plus, he added.

"In addition, guests enjoy seeing the amenities available again, such as our 24-hour fitness center, pool and spa, complimentary breakfast options, and 24-hour customer service staff. They want food available on-site, a shop to purchase sundries and points/rewards for their stay, and these are big differences from the Airbnb/[short-term rental] model," King said.