I recently read an article that discussed the unusual perks being offered by hotels to draw in new guests. Hotel managers are offering everything from a $100 voucher towards a tattoo, to a Harley Davidson motorcycle to use during your stay. One hotel, the Four Seasons Hollywood, is offering your choice of a Mercedes, BMW, or Porsche to drive during your vacation. What is the reason for all of these creative new ideas, you may ask? The answer is “the worst economic conditions since the Great Depression”.
As a matter of fact, hotel occupancy is down to 60% of normal booking activity, the lowest percentages since the 9-11 terror attacks. Many people are pointing out the fact that we went through a hotel building boom, in the years preceding the Great Recession. Also, businesses have cut back on the amount of business Travel they are allowing their employees to do in person. While all of these things are true, there are other reasons for the decline of the hotel industry that are less conspicuous.
Years ago, before the advent of planes, trains and automobiles, it took a lot longer to travel from point A to point B. A 100-mile trip could take up to 2 weeks depending on conditions. During those times, travelers looked more to the generosity of people they met along the way to make their long trip feasible. Family farms and small town homes would open their doors to strangers for the night, cook them a meal and charge them a reasonable price for the service. Since this was not the primary business of these kind hosts, they could charge a price that would work out well for both them and the traveler.
Fast forward to modern day times and mega hotels. Filled to capacity rooms and charging large fees are the only way most hotels can make a profit. Because of this, they are strategically located in areas of high-need so they can do one thing; make money off of limited supply. The problem with this arrangement is that you and I are at the mercy of the hotel chains. Most travelers need a hotel room at the same time other people need it which drives up our costs even more. In addition, most hotels are limited to areas of high traffic. If you are looking to get off the beaten path, then your choices decline severely. This is where the “old has become new again”.
There are still plenty of kind people out there willing to open up their home to a traveler for a reasonable price; just like 200 years ago. And, with all of the “make money from home scams” going on during these tough times, people are discovering that it is pretty easy to make some extra cash if they are friendly, and have a spare room or couch for someone to crash on for the night. It is not rocket science.
Contrary to many thoughts about the economy, people are not taking fewer vacations than they used to, they are just getting smarter about how they travel. People are vacationing closer to home, and driving instead of flying. They are also looking for less expensive options, and what I like to call alternative accommodations. Crashing in the spare bedroom of a stranger, or exchanging homes with a like-minded family are two of the alternative travel options that are becoming a lot more popular, especially here in the United States. Many home exchange websites are seeing 20 to 35% increases in the number of listings they have in just the last year. This is a number that would make the hotel chains heads spin.
The only problem with this model is the lack of proper exposure and organization around the process. Yes, if you have heard of Home Exchanges or HomeStays before, then you should be able to find your way around. But, there are millions of us who this is new to. Most of us would not know where to start if you said the words Home Exchange to them. However, this is also something that companies like Sherpa Travel Exchange are looking to change. Everyone knows that, if given the information and guidance to travel easy and cheaply, people will do it. Look for us as we get things going with “Lucky”, the friendly Sherpa over the next couple of months.
Darrin Underwood
Contributor
Sherpa Travel Exchange
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