Hyatt CEO: We Are Looking Beyond Hotels In 2017

The rise in popularity of alternative accommodations has the major players in the hospitality industry taking notice. Consumers are becoming increasingly interested in bespoke accommodations that offer authentic, local experiences generally unavailable at the properties of the biggest hotel corporations.

“We’re looking beyond hotels to serve evolving needs of guests” said Hyatt Hotels Corporation H CEO Mark Hoplamazian, in a recent interview with Skift.

Rather than watch the alternative accommodations take a chunk out of the hotel business, Hyatt aims to adapt to the shifting industry by exploring different business models to compete within the sharing-economy space.

The Rise Of Alternative Accommodations

It is no secret that alternative accommodations are gaining popularity; in 2014, twice as many people reported staying in a rental property as opposed to a traditional hotel than just six years prior. In the first quarter of 2016, $100 million in venture capital money funded a total of 11 vacation rental startups. Although comprising just 10 percent of the global hospitality industry, the rental property segment is valued at over $100 billion.

Hyatt has insisted that it wants to deliver experiences for its customers, not just a place to stay. “We think about the disruptive forces that we see in the marketplace, making sure that we are paying attention to how we might extend the Hyatt brand experience beyond just hotel spaces into other areas over time is also a big focus,” said Hoplamazian.

“We want to extend and expand the alternatives, expand our resort portfolio but also looking past hotels. Because in a lot of instances, it’s very clear that our guests are looking for alternatives to hotel stays when they’re traveling with their families for vacation,” he elaborated.

The company’s investment in Onefinestay, an Airbnb rival, has indicated that Hyatt is a first mover in the industry and in tune with the competition that could potentially hurt business in the future. The company looks to be flexible in adapting to the future of travel and lodging.