The State of Shared Lodging in Corporate Travel

By Andrew Dyer Vice President of Global Supply, Egencia | August 19, 2018

The sharing economy is everywhere, and as more business travelers continue to use it on trips, companies are taking notice. According to a recent survey from Chrome River Technologies, nearly 7 out of 10 (68 percent) medium to large companies allow their employees to use home-sharing services.  Not only are companies incorporating shared lodging options in their travel policies, but alternative accommodation services are conversely expanding their amenities to specifically target business travelers, as well as through strategic brand relationships and alliances with TMCs and other business travel suppliers.

OTAs and travel providers alike, such as Expedia Group, are picking up on this growing trend by offering alternative accommodations on their sites. At Egencia, we began offering alternative accommodations in 2016. As a newer selection, alternative accommodations are growing at a rapid rate of nearly two times faster than traditional lodging on our platform.
What's the Appeal?

Although road warriors are commonly associated with hotels, alternative accommodations are becoming a popular lodging option for business travelers. In fact, over 40 percent of business travelers have expressed interest in staying in a home-share.  Shared lodging options have grown in popularity among business travelers as they continue to seek more authentic experiences and one-of-a-kind moments. Other factors for choosing alternative accommodations over hotels include location flexibility, competitive pricing and being able to retain a consistent schedule without disruption, which is an important factor especially for road warriors.

As millennials continue to enter the workforce, we can expect that shared lodging bookings will increase. According to research conducted by GBTA, millennial business travelers are the biggest adopters of sharing economy platforms, and are more likely to use room sharing services compared to their older counterparts.  Seeking both value and freedom of choice, millennial business travelers are more inclined to opt out on traditional accommodation options in favor of more unique experiences.

As booking alternative accommodations for business travel becomes more prevalent, it's important to keep in mind the perspectives of travel managers as well. The rise of alternative accommodations, as well as other sharing economy services, presents new duty of care challenges for corporate travel managers to address. Hoteliers have the upper-hand in this case as travel managers are able to easily collect traveler information from hotel bookings made within their program as opposed to home-sharing bookings made on third-party platforms. With this in mind, leverage and maintain your relationships with travel managers to ensure that your properties remain accessible to business travelers through their companies' travel programs.

Hotels and Alternative Accommodations: A Healthy Competition

Choose a Social Network!

The social network you are looking for is not available.


Hotel Newswire Headlines Feed  

Paul Feeney
Marjorie Silverman
Rick Gabrielsen
Nigel Lobo
Richard Hudak
Saeed Kazmi
Didi Lutz
Steve Kiesner
Adria Levtchenko
Dee Dee Dochen
Coming up in May 2019...

Eco-Friendly Practices: Corporate Social Responsibility

The hotel industry has undertaken a long-term effort to build more responsible and socially conscious businesses. What began with small efforts to reduce waste - such as paperless checkouts and refillable soap dispensers - has evolved into an international movement toward implementing sustainable development practices. In addition to establishing themselves as good corporate citizens, adopting eco-friendly practices is sound business for hotels. According to a recent report from Deloitte, 95% of business travelers believe the hotel industry should be undertaking “green” initiatives, and Millennials are twice as likely to support brands with strong management of environmental and social issues. Given these conclusions, hotels are continuing to innovate in the areas of environmental sustainability. For example, one leading hotel chain has designed special elevators that collect kinetic energy from the moving lift and in the process, they have reduced their energy consumption by 50%  over conventional elevators. Also, they installed an advanced air conditioning system which employs a magnetic mechanical system that makes them more energy efficient. Other hotels are installing Intelligent Building Systems which monitor and control temperatures in rooms, common areas and swimming pools, as well as ventilation and cold water systems. Some hotels are installing Electric Vehicle charging stations, planting rooftop gardens, implementing stringent recycling programs, and insisting on the use of biodegradable materials. Another trend is the creation of Green Teams within a hotel's operation that are tasked to implement earth-friendly practices and manage budgets for green projects. Some hotels have even gone so far as to curtail or eliminate room service, believing that keeping the kitchen open 24/7 isn't terribly sustainable. The May issue of the Hotel Business Review will document what some hotels are doing to integrate sustainable practices into their operations and how they are benefiting from them.