Monaker Group (OTCQB: MKGI) has an advantage in the alternative lodging rental (ALR) market. A research report from CBRE Hotels (formerly PF Hospitality) finds that ALR now accounts for 9% of total lodging units in the 10 largest markets in the U.S. and is a threat to the growth and pricing of traditional hotels (http://dtn.fm/OZw8o). In the ALR war, Monaker Group has the advantage of instant online booking for both alternative and traditional lodging.
Monaker Group is using artificial intelligence (AI) as it develops its website, NextTrip.com. It will offer travel agents and consumers a single all-in-one instant confirmation booking site where a user can book ALR, traditional hotels and airfare — everything for a vacation, business trip or a combination of the two. It is a high-technology company focused on the ALR market with its instant confirmation advantage available across non-traditional and traditional travel.
The total inventory of Monaker Group will reach 1.5 million vacation rentals by June 2017, per the company. Earlier this year, it offered one million accept/request properties, its worldwide inventory of resort properties and even “make an offer” bidding solution options. eMarketer research projects that the digital travel market will reach $817.54 billion by 2020 (http://dtn.fm/0Uhh8). Monaker Group will offer ALR digitally plus traditional hotels on its single site. Bill Kerby, founder, chairman and CEO of Monaker Group, said that its site will be an intuitive and fully comprehensive booking platform.
The CBRE Hotels report shows that major ALR player Airbnb is adding more units at a faster clip than traditional hotels, showing the power of the ALR market. For example, in New York, out of a total of 140,000 lodging units, Airbnb accounts for almost 23,000 units, or 16%, as of September 2016. In Los Angeles, ALR accounted for 12% of the lodging units. The numbers were 11% in San Francisco and 9.2% in Miami, the report showed. The available lodging rental units also translated into total hotel-generated room revenue, with ALR accounting for 6% in Los Angles and about 5% in New York, San Francisco and Oakland. In total, CBRE found that more than 55% of Airbnb’s revenues from October 2014 to September 2015 came from five U.S. cities: New York, Los Angeles, San Francisco, Miami, and Boston. “I take my hat off to them. They saw an opportunity that the rest of us missed,” Choice Hotels CEO Steve Joyce noted in a news release. CBRE projected that, as Airbnb grows, its impact will reduce new hotel construction and keep traditional hotel room rates down.
Meanwhile, Monaker Group has a major advantage with its all-in-one instant booking platform. It gives something in the online marketplace that users want but haven’t had before: instant ALR confirmation plus full integration with traditional travel options. Monaker Group said in its investor presentation that it has a mobile app under development that offers users access to its proprietary ALR inventory, real-time booking, an extensive library of videos showing resorts, and even access to online travel agents. Its booking platform is comprehensive for travelers seeking ALR.
For more information, visit www.MonakerGroup.com