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Can Low Cost Hotels provide an alternative to Airbnb?

Can Low Cost Hotels provide an alternative to Airbnb?

Low cost hotels are considered a growing trend; currently in Spain only 4% of the rooms are “low cost” type, compared to the 24% we find in countries like France or even up to 27% in the USA. Airbnb is a platform that specializes in connecting users who want to rent their homes with people […]

Low cost hotels are considered a growing trend; currently in Spain only 4% of the rooms are “low cost” type, compared to the 24% we find in countries like France or even up to 27% in the USA.

Airbnb is a platform that specializes in connecting users who want to rent their homes with people who need temporary accommodation. The idea is to relate tenants to guests directly, without intermediaries.

Although it is true that it is a system that has many advantages, it also has important drawbacks:

For example, it is not possible to cancel a reservation; Furthermore, if your objective is to modify it, you will first need the tenant’s approval. For example; If you have made a reservation for a month, but in the end you have to leave after 3 weeks, you must speak with the tenant in advance. If you do not reach an agreement, in the end you have no choice but to pay for time that you will not enjoy.

And for this reason, so-called low-cost hotels appear on the market as an alternative.

WHAT ARE LOW COST HOTELS?

Low cost hotels are considered a growing trend; Currently in Spain only 4% of the rooms are “low cost” type, compared to the 24% that we find in countries like France or even up to 27% in the US.

This service is characterized by basically focusing on the sale of beds, eliminating some accessories, elements and services that have always been linked to the stay in a hotel establishment (and that did nothing other than increase the price of the stay). The worst thing of all is that many of these services or elements were only used by a small percentage of customers; That is to say, we were wasting money.

For example, a service that many low-cost hotels have done without is the restaurant. The profit margin of this service was approximately 20%… however, the bed sales services have a profit clearly higher than 75%, making the total profitability of the hotel much higher than what is achieved with a hotel traditional.

There is also savings in employees: a 100-room 4-star hotel will operate with around 30 employees… a low-cost hotel does not need as many employees and it will be possible to operate it with around 10 or so. Especially if we take advantage of the advantages that technology offers us today.

WHAT ADVANTAGES DOES A LOW COST HOTEL HAVE?

Savings

Obviously, the great advantage of this hosting system is savings. We no longer have to face a vacation where the hotel is more expensive than the plane. The price difference is considerable, but everything will depend on the hotel we end up choosing.

Choice

For the first time you will really be choosing how you want to stay, without having to pay for associated services that you are most likely not going to use at all.

Trend

As we have already seen, they are a real trend in the market; More and more customers trust low-cost hotels.

A great way to save for your next vacation.

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