Business Travelers Booking Hotels Over Airbnb

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Hello from Skift. It’s Monday, April 17 in New York. Here’s what you need to know about the travel industry today.

Rashaad Jordan

Today’s edition of Skift’s daily podcast discusses business travelers’ aversion to short-term rentals, Canada’s investment in Indigenous tourism and the benefits of being the first hotel in a new location.

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Episode Notes

Even though short-term rentals like Airbnb have grown in popularity, especially during the pandemic, companies are still strict about the exclusive use of hotels for business travel, new research from accounting firm Deloitte reveals. Business travel editor Matthew Parsons writes that business travelers avoid accommodations outside of hotels.

Why do the overwhelming majority of business travelers still stay in hotels when on the road? Parsons cites the difficulties faced by companies in booking stays in other forms of accommodation. Only 9% of companies in Deloitte’s survey had non-hotel accommodations in their corporate booking tools. Additionally, about half of companies do not reimburse employees for non-hotel accommodations.

But a Deloitte executive says the ability to earn loyalty points drives business travelers to stay in hotels. Mike Daher – head of the transport, hospitality and corporate services sector – said many business travelers see loyalty points that could be used for leisure travel as a way to be compensated for time spent away from family.

We then go to Canada. Although the country’s government barely mentioned the executive tourism sector when releasing its 2022 budget earlier this month, the industry has reason to be optimistic. One is that Ottawa is finally providing its Indigenous tourism industry with significant financial support, writes Global Tourism Reporter Lebawit Lily Girma.

Canada’s Indigenous tourism sector will receive $20 million through the first-ever dedicated Indigenous tourism fund. This is in addition to the $4.8 million given to the Indigenous Tourism Association of Canada over a two-year period. Keith Henry, CEO of the organization, told members last week that the group, unlike last year, now has the resources to play a crucial role in Canada’s tourism recovery.

Finally, hotel managers have often decided to launch new brands in major cities because they believe these destinations can better attract customers. But contributor Carley Thornell reports that companies in the sector are seeing the benefits of building the first hotels in off-the-beaten-path locations.

Thornell writes that hotel companies that move into an area before their rivals lure travelers to places they might not have considered. One hotelier, John Flannigan of Wylder Hotels, said the remote location of one of his properties on an island along Maryland’s east coast provided the business with opportunities it wouldn’t have had. in a more developed area – such as the opportunity to introduce customers to members of the local community.