What is the impact of Airbnb in your destination?

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Airbnb’s new Experiences and Places has been filling the news recently – however we should not lose sight of the fact that it continues to expand its influence in the accommodation sector.

A recent report from Morgan Stanley Research indicates that the threat of Airbnb is greatest for the hotel sector. Data in 2015 and 2016 shows a significant increase in the number of travellers who have used Airbnb in the last 12 months. In 2015, only 15% of leisure travellers surveyed had used Airbnb, however this rose to 19% in 2016, and is forecast to grow to 25% in 2017. For business travellers, only 12% had used Airbnb in 2015, but this increased to 18% in 2016, and is forecast to grow to 23% in 2017.

Considering this level of interest in Airbnb by the consumer, it is of no surprise that destinations are increasingly looking at tracking the use of Airbnb in their area. Newcastle Gateshead Initiative (NGI) is the first destination to add Airbnb data to their Acorn T-Stats System, and already some interesting trends and findings are becoming apparent.

 

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Airbnb room occupancy rates in Newcastle tended to follow the same pattern as the hotel industry during the summer season (May-September), albeit achieving a much lower rate; however they drop off significantly in the winter.

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Average room rates in hotels and Airbnb properties are difficult to compare as the Airbnb properties vary considerably from bed and breakfasts through to apartments. Overall Airbnb properties are generating higher average nightly rates, which would be expected as they include multi-room properties.   The surge in room rates in Airbnb properties over the period November-December is mainly due to higher rates in rented houses.

If you would like to include Airbnb statistics in your T-Stats system, or would be interested in using T-Stats in your destination, please contact tamsyn@acorntourism.co.uk

7 April 2017

Acorn T-Stats

 

Tracking tourism in Oman

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This week I’m back in Oman at the Ministry of Tourism in Muscat.

We’re doing lots of exciting stuff, including the development of a quarterly statistics monitor to provide some indicators about how tourism is performing in Oman.  It needs to be up-to-date and current, showing changes compared to the same period the previous year.

When you search about, there is a surprising range of useful indicators that can paint a picture of tourism in a destination.

Firstly, there are the obvious ones that most destinations focus on: tourist arrivals by purpose of visit for (at least) the top five source markets. Better still, it’s good to concentrate on leisure tourist arrivals, as these are the ones a national tourism administration will primarily be responsible for attracting. Timeliness of this data can sometimes be a challenge, but working closely with immigration departments can help.

Then there are accommodation data, ideally room occupancy and average room rates. These are usually available from monthly accommodation surveys. Not all hotels and guesthouses need to respond to these – a sample is enough.

Visits to attractions can usually be collected fairly quickly and without too much difficulty. Again, not all attractions need to provide data, as long as those that do are broadly representative of all attractions in the destination, and therefore can give an indication of change in tourist demand.

Possibly the easiest indicators to collect, and at no cost, are digital media statistics. Some of the most useful include unique visitors to the destination website and followers on Facebook and Twitter. All of these provide an indication of interest in the destination, and can be a useful measure of marketing activity.

Throwing in some national or international economic indicators is always worthwhile, to create a broader picture. These might include exchange rates with those currencies most used by inbound tourists, the domestic interest rate, rate of inflation, and fuel prices. All of these have an impact on either inbound and/or domestic tourism demand. They may not change vastly from one month to the next, but when doing annual comparisons they can provide some interesting insight.

Finally, for good measure, it’s not a bad idea to engage with the tourism sector through a business barometer survey, emailing accommodation establishments, tour operators, attractions, and other businesses that interact with tourists with a short online survey. Asking questions such as: what are your prospects for visits or forward bookings over the next three months? provide a good indication of business sentiment and confidence in the sector.

Sometimes it’s surprising how much intelligence you can pull together to track tourism in a destination; as was the case here in Oman.

http://www.acorntourism.co.uk

http://www.t-stats.co.uk