Eight in 10 small hotel guests would consider switching to STRs, says Pricelabs

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ShortTermRentalz Eight in 10 small hotel guests would consider switching to STRs, says Pricelabs

What It Says

A survey of 1,082 travellers across the US, UK, France, Spain, and Portugal conducted by revenue management platform PriceLabs reveals that 82% of guests who stayed at B&Bs, inns, or small hotels would consider booking a short-term rental (STR) at a similar or slightly lower price point.

The report, titled Who Do Independent Hotels Really Compete With?, highlights that independent, small-scale accommodations face much steeper competition from STRs than large hotel chains do. Thirty per cent of independent hotel guests considered an STR for the same trip, compared to just 16% of large hotel guests. This overlap is most pronounced during longer stays (one to two weeks) and hybrid "bleisure" trips.

Why It Matters

The lines between independent boutique hospitality and professional short-term rentals have officially blurred. For STR operators, this represents a massive opportunity to capture market share directly from traditional B&Bs and independent hotels. For technology vendors, it highlights the growing necessity for cross-category market intelligence. Pricing strategies can no longer be set in a vacuum; STR operators and independent hoteliers must monitor each other's rates to remain competitive, especially as online travel agencies (OTAs) like Booking.com display both inventory types side-by-side.

Useful Signals

• OTA Search Behavior: 45% of travellers searching on Booking.com compared both hotels and STRs, compared to only 29% of those booking directly.
• Pricing Correlation: PriceLabs' analysis of daily median rates in Mallorca and Barcelona revealed a 94% and 84% correlation respectively between hotel and STR pricing, proving that both sectors react dynamically to the same market forces.
• Length of Stay (LOS) Dynamics: Cross-consideration between STRs and small hotels rises to 30% for blended work-and-leisure trips and 25% for stays lasting 7 to 14 days.

STR Tech Report Take

This data confirms that consumers view high-quality STRs and independent boutique hotels as interchangeable options. As PriceLabs co-founder Anurag Verma noted, "many travellers stopped making that distinction some time ago."

For STR technology vendors, this shift underscores the need for unified revenue management tools that ingest both hotel and vacation rental data. Property management systems (PMS) and revenue management systems (RMS) must evolve to help operators benchmark their listings not just against neighboring Airbnbs, but against local boutique hotels and inns. Operators who position their properties with hotel-like amenities and professional standards stand to capture the 82% of independent hotel guests open to making the switch.

Original Source

Eight in 10 small hotel guests would consider switching to STRs, says Pricelabs