By Malcolm Noden
June 19, 2019
Recently, in the Observer we examined the changing nature of the hotel business. We took note of the historical qualities of ownership and operations and noted how the hotel business has undergone a profound series of changes that seem to be way out in front of the knowledgeable control of state and municipal authorities.
In a recent article in a national magazine the question was asked: “Travel: Airbnb or a Hotel? Some rentals are both.” In the article that follows, it was suggested that, “…the lines are blurring.” The article went on to note that recently, Marriott hotels, (the company that operates the Ritz-Carlton here on our island), announced that it is expanding its new luxury home rental business. The article also noted that Airbnb is developing a, “…boutique hotel-like service…”, starting in New York City. In addition, Airbnb has acquired the last-minute hotel booking service and app, HotelTonight. Given that Airbnb now owns about 20% of the entire consumer lodging market, I think that we are shortly in for a series of significant changes which will affect the entire lodging business in our community.
One of the reasons for the success of Airbnb is their so called, “cool listings” that are within bargain price levels. Examples include a cave in in Bonnieux, France for $160 per night, a windmill in the Netherlands, or a restored sheep wagon in Wyoming. In addition, Airbnb customers can create a “wish list” that includes unusual places to stay. Examples include a 300 square-foot log cabin in Tennessee, and a tree-house property in Atlanta, which for $375.00 per night lets the guests, “…watch as the llamas wander about the forest below.”
I am wondering how long it will be until some clever local entrepreneur decides to purchase a large, local historic building, and create a block of Airbnb rooms that can attract some of the the many history buffs in our inbound tourist flow. Let’s see now, is it a hotel, or is it a B&B, or a short-term rental apartment project, or what????
Maybe the State Parks could build some more log cabins in Ft. Clinch! Maybe the attempts to rescue our waterfront on Amelia Island could be stimulated by building some “crab shacks” for the visitors who like being close to the water. The important thing to know about such developments is the customers want and expect much higher quality in these alternative accommodations. The crisp white bed sheets are still a necessary part of the 24/7 check in arrangements.
Editor’s Note: Malcolm A. Noden, who is the (Retired) Senior Lecturer in Management, Economics, Marketing and Tourism at the School of Hotel Administration, at Cornell University, is a well-known expert in the applied economics of hospitality and tourism policy, promotion and development.
Noden is the past Chairman of the New York State Tourism Education Task force, an advisory board appointed by former Governor George Pataki of New York. Noden serves on the editorial board of TEOROS International, a theoretical research journal for education in tourism, and was the Cornell University representative to, and a founding member of, the World Tourism Organization, Educational and Training Board.