Airport Hotels vs Luxury Hotels

Many of the airport hotels that exist have been forced into making radical adjustments in the way they are run in order to compete with the luxury hotels. It was estimated that the industry as a whole spent about $5.5 billion in 2007 on capital and the airport hotels ranked second to luxury hotels.

The way these airport hotels have started to fight back is by offering more competitive prices. When customers look for cheap hotels, the airport rates appear alongside those of the luxury hotels. There are better rates and deals available recently and this means that the airport hotels can compete again. The airport hotels main selling point is that you do not have to go far once you have landed, this is especially important if you have just been on a long-haul flight when the last thing you want is more travelling.

The main customer segment for the hotel airports are the frequent flyers, however, in the past some said that they would rather sleep on the sofas in the business lounge than stay in the airport hotel but all this has changed now the quality of these hotels has increased immensely. The question is; can airport hotels attract other segments?

Luxury hotels are usually ideally placed for customers to get the most out of their holidays, normally located in or around the centre of city's they are the usual choice for customers. As the airport hotels fight back, the luxury hotels should be able to offer better deals, simply because they have more capital to do so.

There is another option for customers that, although not as big in the market, still attracts a considerable amount of people and they are holiday cottages. These cottages offer the customers something different and are normally located out of the centres and around the more picturesque places. All 3 types are thriving and it will be interesting to see whether they can maintain this growth.

Cheap hotels can be found and the emergence of airport hotels has seen them compete with the luxury hotels. Whether or not holiday cottages can compete with the big 2 in the market will be interesting to see.

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