Price and Choice

Employees want choice. Employers want cost-effective business-first accommodations. So how do you deliver both? With Urbandoor.

When it comes to business accommodations, we continue to hear talk about the need for ‘alternative accommodations’ that meet the business traveler & transferee needs while also meeting the needs of their companies. Historically businesses have looked at two different choices; Hotels and Corporate Apartments, with a third choice entering in more recently - vacation rentals like Airbnb.

Each choice has its own list of benefits whether it be location, amenities, or a specific feature (room service, for example) that the traveler or transferee prefers. For the corporate customers and agencies who use Urbandoor, they find that the accommodations meet and often exceed the expectations for business travel and relocation (no yurts or vacation rentals here) so the decision often comes down to price.

As Urbandoor has grown over the past year, we’re excited to start to look at our pricing in key markets as it compares to Hotels and Airbnb. To do this, we started with the historical average ADR (Average Daily Rate) at Urbandoor. This data includes bookings starting in January 2016 through today and is inclusive of all taxes, fees, and add-ons (i.e., pets and parking). We then compared it to the 2016 BTN (Business Traveler News) Hotel pricing (using the average for each city plus all Sales Tax, Occupancy Tax & Surcharges) and the 2016 Airbnb average for each city (taken from 2016 STR Airbnb & Hotel performance).

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The results were not surprising: ADRs at Urbandoor are consistently (and in many cases, significantly) lower than Hotels - with an average savings of $105 per night across the seven sample cities. As expected, Airbnb is the least costly of all three with an average of $43 saved per night vs Urbandoor. There are a few key takeaways for the travel and relocation professional here:

  • You have a choice: Airbnb has proven that people want more choice when they travel. Hotels are great for short stays but for extended business travel, project work and relocations, more space is needed.

  • You can book that choice for less:  With Urbandoor, you can book a professionally managed, fully furnished and serviced apartment for much less than a hotel, and in many cases, at competitive rates to a vacation rental. Additionally, many of the properties on Urbandoor have amenities like fitness centers, media rooms and dog parks. The space your employees or clients need with the duty of care your business demands.

  • San Francisco is crazy: As we are based in San Francisco, we’re acutely aware of the cost of rentals in and around the city. Hotels and Airbnb are the highest when compared  to our other sample cities. Not a surprise to us, unfortunately. But what was nice to see was how much less our Urbandoor ADR is. Come do your work in San Francisco and enjoy the benefits of a fully furnished apartment!

In a following post, we’ll look at stay length across these cities to see how that compares to other choices that exist for the business professional.

Sources:

  • STR Airbnb & Hotel performance; An analysis of proprietary data in 13 global markets, link

  • BTN 2017 Corporate Travel Index, link