U.S. private accommodations revenue has grown to almost a quarter of U.S. hotel revenue in recent years on the growing popularity of companies such as peer-to-peer accommodations service Airbnb and home-based vacation rentals service HomeAway, according to research firm Phocuswright.
Additionally, the private accommodations market appears to be approaching maturity, as its growth rate will fall to that of hotel room revenue within the next couple of years.
U.S. private accommodations revenue will reach $36.6 billion next year, while Phocuswright has forecast U.S. hotel revenue to hit $168.3 billion this year.
Home-based accommodation demand has surged in recent years, as more units have been made available in urban markets. About a third of U.S. travelers had used private accommodations by 2015, up from 8% five years prior. As a result, private accommodations revenue increased by about 11% for both 2015 and 2016.
That growth rate is slowing, however. Private accommodations revenue will decelerate to 7% this year, the same growth rate as hotel room revenue.