The travel industry is booming, but for many potential travellers, cost remains a significant barrier. As such, people are seeking more options for affordable travel, from flights to accommodations. Low-cost carriers account for almost 30% of airline seats sold in 2022, and apps like Airbnb are seeing more use for searching for affordable accommodation. This presents a great opportunity for accommodation providers to tap into a whole new market by embracing the low-cost travel trend. By offering budget-friendly options and taking advantage of low-cost travel, you can attract a wider range of guests and fill those empty rooms during off-peak seasons. Here’s how low-cost travel can bring more people to your accommodation:
A wider reach
Low-cost carriers offering lower prices make travel more accessible for people who may not have previously had the opportunity to do so. More affordable airfares, for instance, can encourage people to travel internationally and find the best value for their money. Tourists can find and compare cheap flights to the UK or other destinations like Spain and Portugal. Even for those booking last-minute flights, a low-fare finder helps tourists find the most affordable trips. More people travelling can increase occupancy rates and stimulate business at your accommodation, and overseas visitors also play a significant role in the local tourism industry.
An influx of international guests can also help you expand your reach to wider markets, as travellers who come home with a good experience can recommend your B&B or holiday rental to those looking to visit the area. If these travellers also appreciate the value they receive, they may also become returning customers for future stays.
New customer base
Low-cost options open your doors to a whole new demographic. Younger travellers, students, and those on extended trips are more likely to consider your accommodation if it fits their budget. According to data from Statista, the preferred travel accommodations for 35% of Generation Z travellers are standard hotels, motels, or condominiums rated three stars or lower. These places may provide a more affordable stay, offering basic necessities and amenities. Around 19% prefer rental apartments or houses, and 13% enjoy staying at B&Bs. Taking advantage of their penchant for low-cost travel can open up new business opportunities and a chance to market your property to new people who can bring in more business.
You can target this new demographic by considering offering activities like walking tours or partnering with local businesses for discounts on attractions, which can cater to younger travellers who are keen on new experiences. Since they’re more likely to spend on these, you can still generate revenue even with cheaper room rates and prices.
Opportunities for growth
The rise of low-cost travel may seem like you’ll be losing money with people wanting to spend less, but it can actually be an opportunity for your business to grow. Lower prices attract more budget-conscious travellers, leading to higher occupancy rates year-round. Since people might prefer to travel outside of peak season when prices are lower, you can still maintain business. This translates to more consistent revenue and a healthier bottom line.
You can also improve your accommodation offerings by taking advantage of the rise of low-cost travel. Providing great deals and promotions can make a stay at your property worthwhile compared to other places with higher fees. Target budget travellers by offering special promotions during the shoulder seasons or weekdays. Package deals that include breakfast or local transportation can be particularly attractive. By doing so, you can gain a competitive edge over other accommodations by creating a more valuable stay for budget travellers and new demographics, boosting your business.
By embracing the low-cost travel trend, you can expand your reach, attract new customers, and ensure your accommodation thrives throughout the year.
