It’s a common misconception that alternative accommodation is causing a massive decline in hotel occupancy. What we have found instead is that platforms such as Airbnb or HomeAway have actually opened up a whole new traveller market. For example, the cost of a hotel can be limiting to a family of four travelling on a budget.
They would need to all stay in one room and eat out constantly. Instead, the same family can rent a one bedroom apartment in a great location, have enough space for all and be able to cook their own meals. They may even stay longer and spend more money on local attractions. Whereas before this family would never consider Dubai as a travel option – they definitely would today as the options for accommodation have expanded.
The offer of alternative accommodation is absolutely the best thing to happen to the region – boosting tourism. Alternatively – the great hotels in the region continue to perform well and have a steady clientele. The trend we do see is the decline of the mediocre, whether a hotel or an Airbnb. Guests are smarter, they know what they want and what they are willing to pay for it. This ensures that quality emerges on top.