US hotel revenues helped by targeting millennials

Increasing usage of Airbnb and its ilk has not yet weighed on top-line revenue growth for traditional hotels in the US, which saw revenue per available room grow by 6.2% from 2014 to 2015. However, it has led some hotel chains to more actively target travellers in their twenties and thirties, 82% of whom took a vacation in the past 12 months compared to 75% of the broader population surveyed by Mintel. Chains such as Radisson's Red and Marriott's Moxy offer check-in by app, decor with local design touches, digital and social connectivity, and lower prices to appeal to the millennial market. Meanwhile, boutique establishments, such as 21c Museum Hotels, offer a "cultural experience" as part of their accommodation.

Since its founding in 2008, Airbnb has been cited as a huge disrupter in the hotel industry, heralded as the next big thing in travel as consumers embraced the sharing economy. As more young travelers ditched traditional hotels in favor of Airbnb's funky local lofts, tree houses and houseboats, some wondered if it would crush old-school hotel chains' business.