Live Show 107 August 25th 2017

Live Show 107 August 25th 2017

“Amazon is taking over the world or at least food, and why are apps not the answer for your hotel”

Show Player

Edward StOnge
Tim Peter
Holly Zoba

Robert Cole

Show Notes

00:04 Dean of Rosen School of Hospitality resigns
00:14 Why are hotel apps not getting downloaded and used and what would be better solutions
00:22 Technology is not innovation use of tech and gaining results is.
00:31 Discussion about the best way to transition leaders and the active projects they are assuming
00:39 Looking at easy mans shiny object solutions rather than fixing whats around the issue and do the ‘long’ work
00:42 If PMS systems were built right the first time CRS systems would never have been made…
01:03 Amazons plan approach to taking over Whole Foods pricing and its plan to develop technology
01:10 the bundled offers of current agencies will become unbridled offerings in the future
01:13 Great example of innovation is Henry with ICEPortal
01:20 Amazons fix it process of what Whole Foods issues were
01:24 What about Walmarts collaboration with Google as a counter to Amazons growth
01:34 The Marketing Companion By Mark Schaefer, Tom Webster Podcast Link: podcast about the NPR report

Here are 10 potential news topics:

1. Most hotel brands offer mobile apps, yet few get downloaded
2. TripAdvisor’s Smoother Path to a Takeover
3. What Spooked the U.S. Leisure Traveler?
4. The U.S. Department of State warns U.S. citizens about the risk of traveling to certain parts of Mexico due to the activities of criminal organizations.
5. Hyatt and Expedia Formally Sign New Deal
6. Despegar Files for $100 Million IPO and Expedia Could Benefit From Its Growth
7. Continued tolerance from hotels lets some wholesalers bend the rules
8. TUI’s Blockchain initiative blips IBM’s radar
9. Hilton CEO Looks to Airbnb as Hedge Against Power of Expedia and
10. Morgan Stanley on Airbnb v. Hotel REITs –
Lodging and Internet
Airbnb Regulatory Guide for the Top 25 US Lodging Markets
North America
Industry View In-Line
Thomas Allen, Brian Nowak, CFA, Mark Savino, Chaodan Zheng
August 24, 2017

We have done a deep dive into the regulatory set-up of short-term rentals in the top 25 US lodging markets. We found 8 cities (NYC, Anaheim, Miami, Oahu, SF, Las Vegas, New Orleans, Atlanta) to be restrictive (Airbnb unfriendly/good for hotels) and 6 to be accommodating (bad for hotels).

Central database for short-term rental regulations. There are no federal guidelines on short-term accommodation rentals, so cities have approached regulation differently. In this report, we’ve laid out the current legal framework for the 25 largest US hotel markets, and created a benchmarking system to assess whether cities are “Airbnb friendly” or “unfriendly.”

Of the top 25 US lodging markets, 8 stand out as “Airbnb unfriendly,” which we view as good for hotels’ performance. These are New York, Anaheim, Miami, Oahu Island, San Francisco, Las Vegas, New Orleans, and Atlanta. These cities’ approach to short-term rentals ranges from harsh regulation to outright bans, often associated with hefty fines.

We identified 6 cities as “Airbnb friendly;” they stand out as either choosing to be lax on short-term rental regulations or accommodating to the product. These cities are San Diego, Detroit, Phoenix, Philadelphia, Houston, and Dallas.

Exposure to “Airbnb friendly” cities poses a risk to REITS, while “unfriendly” cities are a benefit. In our coverage, XHR appears to be most exposed to cities that are “Airbnb friendly” (bad for hotels) with 22% exposure to loosely regulated markets (including Houston and Dallas). HST has the most exposure to markets that we view as “Airbnb unfriendly” (primarily NYC and San Francisco) at 27%, but has 17% exposure to “Airbnb friendly” cities. Netting the friendly vs. unfriendly exposures, HST and DRH appear to be most insulated, while XHR and SHO appear most exposed.

What’s Next? Many cities are actively engaged in developing a more well-defined regulatory framework for short-term rentals. Notably, Los Angeles is in discussions to take a harsher stance against hosts, while DC’s city council is looking at primary residence and registration requirements, and a 15 night occupancy cap for renters. Anaheim and Nashville are among several markets that could potentially ease regulations. As Airbnb supply continues to grow, and negatively impacts hotels’ ability to drive rate especially during peak periods (see our recent analysis showing Top 25 markets’ compression nights have dropped 13% YTD and 17% in 2016), regulations will have a greater influence.

Covered Lodging REITs’ Net Airbnb Market Exposure

Source: Morgan Stanley Research

Or, we could talk about Amazon acquiring Whole Foods, lowering prices and making Prime it’s loyalty program…

Founder / CEO of Hospitality Digital Marketing

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