Airbnb And The Hotel Industry

Hilton’s New 'Hostel on Steroids' Could Help It Steal Millennials From Airbnb - Fortune

Excerpt from Fortune

Seeking to attract the travel-minded millennial generation, Hilton Worldwide is going smaller, cheaper, and more local with what it's calling a 'hostel on steroids,' CEO Christopher Nassetta said at the Skift Global Forum in New York on Tuesday.

“It’s very trendy in a sense, sort of like a hostel on steroids. But a lot of steroids,” Nassetta said of the new hotel concept, what he called an "urban micro brand." The CEO first mentioned the ultra-small hotel idea in 2016.

“The idea is to have super efficient spaces that are crazy flexible,” Nassetta later told Fortune.

The news comes after Hilton in 2016 launched Tru by Hilton, a line of hotels that are smaller and cheaper than Hilton’s core hotel brand, in an earlier bid to attract millennials. Major hotel chains have struggled in recent years as the price-conscious generation known for seeking novel experiences has opted for less conventional travel options, such as those available on home-sharing platform Airbnb.

Airbnb's presence has forced the industry's legacy brands to experiment with unconventional ideas. With the yet-unnamed concept, for example, Nassetta is hoping to make the rooms similar to connectable building blocks. In theory, that could allow a party of four to rent four rooms and merge two for play and two for sleep. 

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