Are alternative accommodations a threat to hotels in Portugal?

• Author(s): Elias-Almeida, Anabela ; Ferreira, Cátia Malheiros ; Lopes, Maria Sofia
• Date: 2020
• Persistent ID: http://hdl.handle.net/10400.8/8575
• Origin: IC-online
• Subject(s): Alternative accommodations; RevPar; Occupancy rate
• Document Type: Book part
• Language: English
• Contributor(s): Repositório IC-Online

Description

The possibility to book unique accommodations around the world is growing. Since 2005 an alternative segment of accommodation is becoming a strong phenomenon in Portugal, progressively increasing in demand. There are many different types of alternative accommodations, from cheap to luxury, each operating in its own niche. In Portugal, the rise of luxury accommodations has brought new attention to the lodging sector. Traditional accommodations are also benefitting from recent travel trends. More travelers want to live and feel as a local, and less like a tourist. Today, it´s becoming more about experiencing a destination for what it is and meeting other travelers who are interested in meeting new people. Therefore, this study aims to understand the growth of tourism and alternative accommodations in Portugal, and their impact on the Hotel industry. Are alternative accommodations a threat for hotels? And what about hotel operational performance? To answer these two questions the present study examines the effects of alternative accommodations supply on two key hotel performance metrics: occupancy rate and RevPar in all Portuguese hotels for the period between 2014 and 2018.