Startup Companies Evolving Home Rental Travel Market
In the race between traditional home rentals and companies that have created their own niche like Airbnb, a new breed of start-up is now offering a hybrid targeting the best of both worlds.
New York startup companies like Domino aim to offer travelers the comfort of an apartment with hotel level standards. Larger hotel companies have also started to offer ‘apartment hotels’ – professionally managed private residences. Marriott International Inc. revealed a new home rental business that will include 2,000 high-end homes in 100 markets across the United States, Latin America and Europe. Expect many of these homes to be located in close proximity to Marriott golf, ski and beach resorts.
Airbnb is experimenting with a similar approach to take advantage of an evolving travel market by recently announcing a partnership with real estate owner RXR Realty to turn 10 floors near the top of the Rockefeller Center office tower into hotel-like accommodations with the expectation of ‘if we create the market, the consumers will follow’.
Meanwhile, the New York City-based startup Domino recently purchased their first location in New Orleans, a collaboration with the investment firm Upper90. The theory again, to have rentals that resemble apartments, however are rented by the night for rates starting at $149. Advantages include having access to a kitchen, washing machines, a roof top pool and cable TV.
Last year Airbnb dispatched its real estate team to New York to help solve the companies short supply issue in the city. Airbnb held talks with startup companies like Domino and discussed financial backing to startups to lease buildings and in return units would be listed exclusively on its website.
In the world of alternative hotel options, you can anticipate the hotel-like apartments and design-savvy trend going forward. Expect this evolving consumer offering and demand to continue its evolution.