Filling in the Alternative Lodging Industry's Missing Piece -- SECFilings.com

REDONDO BEACH, CA--(Marketwired - Oct 25, 2017) - SECFilings.com, a leading financial news and information portal offering free real-time public company filing alerts, announces the publication of an article covering the Alternative Lodging Industry as a whole and the unique approach of The Monaker Group Inc. (OTCQB: MKGI).

Hotels have long been the mainstay for travelers, but the rise of Airbnb has forever changed the industry. The number of U.S. travelers who have used private accommodations has risen from less than 10% in 2010 to more than 30% just five years later, according to Phocuswright. With a $31 billion valuation, the startup has already surpassed every hotel chain except Marriott International Inc. and has done so while making a profit each year.

Alternative Lodging is Cannibalizing Hotels

The global hotel industry is expected to generate more than a half trillion dollars worth of revenue next year, according to Statista, representing a 6% compound annual growth rate over the past eight years. Technavio forecasts that the global Alternative Lodging Rentals market (ALR) will grow at more than 7% to $193.9 billion by 2021, but remains in its infancy with only about 15% market penetration in 2016, suggesting that they will cannibalize hotels.

The growth is largely attributable to consumer demand for unique experiences when traveling, as well as the conveniences of homes versus hotel rooms. Airbnb Experiences promotes the idea of "traveling like a local" with more diverse itineraries than simply hopping a bus tour to the Colosseum. When staying in a local's own home, you have access to their lifestyle and can experience the world through their eyes rather than a visitor's eyes.

The key barrier with many ALR products, like Airbnb, is that they aren't integrated into online travel agent (OTA) solutions, like Expedia Inc. or Kayak. These OTAs are often used by consumers to book airline tickets, but upsell these customers on hotels, car rentals, and other travel services. In essence, it's the 60% to 70% of the population that hasn't stayed at a private accommodation when traveling.

Hotels have also responded to these trends in several ways. Marriott began placing its time shares into general inventory in some markets, like Orlando, Florida, while its Moxy Hotel business has evolved with open floor plans and communal spaces. Many other hotel changes have made similar moves designed to compete in the ALR market with more unique properties, as well as hotel concepts that are more closely tied to specific target audiences.