Airbnb is a platform that specializes in connecting users who want to rent out their homes with people who need temporary lodging. The idea is to connect landlords with guests directly, without any intermediaries.
Although it is true that this system has many advantages, it also has significant drawbacks:
For example, it is not possible to cancel a reservation; furthermore, if you want to modify it, you’ll need the landlord’s approval first. To give an example: if you’ve made a reservation for a month but end up having to leave after 3 weeks, you must discuss this with the landlord beforehand. If you can’t reach an agreement, you’ll ultimately have no choice but to pay for a period you won’t be using.
And that is why so-called “ low-cost hotels” are appearing on the market as an alternative.
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What is a low-cost hotel?
Low-cost hotels are considered a growing trend; currently in Spain, only 4% of hotel rooms are “low-cost,” compared to 24% in countries like France and as high as 27% in the U.S.
This service is characterized by its focus primarily on the sale of beds, eliminating certain amenities, features, and services that have always been associated with a stay at a hotel (and that did nothing but drive up the price of the stay). Worst of all, many of these services or amenities were used by only a small percentage of guests; in other words, we were throwing money away.
For example, one service that many budget hotels have done away with is the restaurant. The profit margin for this service was around 20%… however, room sales generate a profit well over 75%, making the hotel’s overall profitability much higher than that of a traditional hotel.
You also save on staff: a 4-star hotel with 100 rooms will operate with about 30 employees… a budget hotel doesn’t need as many employees—in fact, it can be run with about 10 or so. Especially if we take advantage of the benefits that technology offers us today.
What are the advantages of a budget hotel?
Savings
Obviously, the biggest advantage of this lodging system is the savings. We no longer have to deal with vacations where the hotel costs more than the flight. The price difference is significant, but it all depends on which hotel we end up choosing.
Choice
For the first time, you’ll truly be able to choose the type of lodging you want, without having to pay for associated services that you’ll most likely never use.
Trend
As we’ve already seen, they’re a real trend in the market; more and more customers are choosing low-cost hotels.
A great way to save up for your next vacation.
