India's Oyo Hotels is launching furnished apartment rentals in Tokyo, betting on a shift from traditional lodging to home-like stays. Meanwhile, global data shows travelers increasingly favor apartments over hotels for comfort and space.
The "Home Away From Home" Holiday Rental Boom
Late last year, Booking.com ran a survey showing over 30% of global travelers plan to stay in villas, holiday homes, or apartments — places that feel like actual residences. After arrival, 44% of respondents said they prefer the comfort of holiday homes or apartments over hotels because it feels like being at home.
The fact that apartments topped the customer review awards two years running says it all: people now prefer apartment-style accommodations over traditional hotels.
Another notable trend: excluding second-place hotels, the top rankings are dominated by alternative lodging — apartments, guesthouses, B&Bs, and vacation homes. This aligns perfectly with the survey data.
Why the surge? The core driver is "that at-home comfort and ease." Unlike hotels or resorts, apartment-style properties offer spacious rooms, kitchens, and everyday household items — so you can enjoy everything you're used to, even while traveling. Some hotels are catching on, adding kitchens to suites or opening multi-room units to cater to this shift.
Last year saw similar interest, but the motivation was different. Back then, travelers wanted to experience local culture authentically. Now, the focus has shifted to rest and relaxation. Does your property offer guests that sense of home? A sanctuary where they can truly unwind?
[Travel Daily, 2019.01.29, Travel… Apartments Over Hotels?]
The Rise of Apartment Rentals and the Shifting Hospitality Landscape
India's Oyo Hotels — the country's largest startup and a budget hotel chain — recently launched an apartment rental service. Starting in Japan, Oyo aims to secure over 1,000 apartments in central Tokyo by the end of March.
Why Japan? Because of the country's rental culture. In Japan, apartments typically come unfurnished, forcing tenants to buy their own furniture. Oyo spotted the gap and is offering fully furnished units — complete with utilities, internet, and all amenities. It's a bit like coworking spaces such as WeWork or SparkPlus, but for living.
This launch reflects a sharp read on shifting consumer behavior. As we covered earlier, travelers increasingly prioritize comfort — whether at home or on the road. Meeting that demand requires accommodations that go beyond traditional offerings. In Japan's case, that means furnishing and outfitting apartments end-to-end.
The apartment lodging sector is growing fast, year after year. Major OTAs like Agoda Homes, Airbnb, and Booking.com Holiday Rentals are all launching dedicated business units to attract and promote apartment-style stays. As both domestic and international markets evolve to meet consumer needs, property owners must ask: How will we adapt to this shift? What makes our property stand out against the apartment boom?
Oyo already tested a similar service in India last year. Given their track record — buying up budget hotels and standardizing them under a unified brand — expectations are high for this new venture.
[Lotte Daily, 2019.02.22, SoftBank-Backed Indian Hotel Startup Oyo Launches Apartment Rental Service in Japan]
Stricter Safety Rules for Rural Guesthouses — A Long-Overdue First Step
The Ministry of Agriculture, Food and Rural Affairs announced plans to tighten safety obligations for rural guesthouses and prevent the unchecked proliferation of unlicensed operations.
In short: rural guesthouses must now meet safety standards comparable to registered lodging businesses, and new operators will face stricter registration requirements. The push comes after a series of incidents — including fatal pension accidents late last year and a group carbon monoxide poisoning involving students earlier this year — all at facilities registered as rural guesthouses. The government is finally holding these properties to the same safety duties as other lodging types.
Prompted by the carbon monoxide tragedy, the new rules include mandatory submission of electrical safety certificates from the Korea Electrical Safety Corporation and gas safety inspection reports from suppliers. Gas safety measures have been significantly upgraded: operators must conduct regular checks, install carbon monoxide detectors, and document heating system status. The focus on gas safety is unmistakable.
Critics have slammed the government for scrambling to act only after disasters strike. Hopefully, this reform marks the beginning of proactive policymaking — not another case of closing the barn door after the horse has bolted. Small steps taken now to strengthen regulations and address gaps can prevent future tragedies.
If you operate a property classified as a rural guesthouse, familiarize yourself with these updated rules. Take steps now to prevent accidents before they happen.
[Jungdo Ilbo, 2019.03.07, Rural Guesthouse Safety Standards Raised to Match General Lodging]
Want to Win at Travel and Lodging? Target Gen Z and Millennials
According to app and retail analytics firm Wiseapp, Agoda was the most-used online travel agency (OTA) in Korea last year. Agoda recorded ₩1.056 trillion in total card payments in 2018, far outpacing second-place Hotels.com at ₩813.7 billion. Following behind were Airbnb, Yanolja, and Yeogi Eottae, with ₩596.1 billion, ₩505.8 billion, and ₩382.4 billion respectively — a strong showing for Korean platforms.
One standout finding: people in their 20s and 30s accounted for a massive share of payments. As of December 2018, they made up 59% of Agoda's total payment volume — and 85% on Yanolja, over 70% on Yeogi Eottae. Gen Z and Millennials are driving the bulk of OTA spending, both domestic and international.
This signals a generational shift in purchasing power within travel and hospitality. In the past, offline bookings meant parents (the income earners) held the purse strings. But as booking moved online and mobile, payment became frictionless — and decision-making shifted to younger consumers. Add in the consumption-driven culture of people in their 20s and 30s, and you've got a generation that books everything: family trips, couple getaways, friend vacations.
Bottom line: to attract guests, you need to catch their eye. This cohort values comfort and relaxation, gravitates toward aesthetic vibes, and is highly sensitive to trends and interior design.
If you're working to bring more guests to your property, keep these consumer traits in mind. Build a strategy that speaks directly to this target audience. We regularly publish marketing trend columns in this newsletter — check them out and start crafting a plan to promote your property effectively.
[Platum, 2019.03.05, Agoda Leads 2018 Online and Mobile Travel Agency Card Payments]