Despite lawsuits in cities like New York City and San Francisco to restrict or even ban Airbnb, it’s clear that home-sharing as a form of accommodation is here to stay. When travelers are looking for a place to stay, they have so many more budget-friendly options outside of hotels with websites such as Airbnb, Homestay, and Flipkey. A new study by Phocuswright reveals that shared lodging is probably a bigger competition than you think – in fact, almost 1 in 10 U.S. travelers rented a shared space last year.

The Myth of the Shared Lodger

When thinking of the type of traveler who uses Airbnb, many imagine tech-savvy millennials traveling solo to new cities. While this is certainly true, millennials aren’t the only demographic. 12% of millennials (18-34), 7% of 35-54 year olds, and 6% of 55+ travelers rented a space in 2014.

Further, shared space renters aren’t necessarily traveling alone. Not only did Phocuswright find that 31% of renters traveled as a couple or with another adult, but a surprising 22% were families with children. An additional 9% of travelers rented with adult friends or family. In other words, shared lodging guests probably look a lot like your own guests.

How to Attract Renters to Your Hotel

So what makes renters different? Homestay found that on average, lodging sharing trips were 7.4 days compared to an average of 5.7 days for all trips. Offering a special deal on longer trips, such as 10% off a stay of 4 nights or more, can incentivize travelers to book.

Another key characteristic of the shared-space renter is that these travelers are very digital. They are planning and booking their trip on mobile devices, and you need an optimized web site to get those bookings.

Finally, while cost does count, travelers who use homestays are also willing to pay for the cultural experience. Be a resource for travelers both in-person and on social media to help with understanding local public transportation, recommending local restaurants, and letting travelers know where they can find special deals on museums or attractions. Shared space rentals may be in more residential areas, so be sure to promote the convenience of your hotel’s location.

Compete with Rentals

Want even more ideas of how you can effectively capture guests who may be considering rentals? Download our free white paper: How Hotels Can Compete with Rentals.