Introduction
In the fiercely competitive travel & hospitality industry, the direct competition is visible and well-understood. Failing to recognize them can lead to strategic blind spots, as today's traveler's choices are influenced by a vast ecosystem of alternatives beyond traditional options.
This article explores who indirect competitors are, why they are particularly potent in travel & hospitality, and provides real-world examples to help businesses navigate this complex landscape.
Indirect Competitors Definition
Indirect competitors solve the same or a similar customer problem but in a fundamentally different way. They are not "alternatives" in the traditional sense; they are substitutes.
Key Difference:
Direct Competitor: A Hilton hotel vs. a Marriott hotel (both solve the need for "lodging in city X").
Indirect Competitor: A Hilton hotel vs. a home-sharing platform like Airbnb (both solve the need for "accommodation in city X," but through different models).
The core question to identify them is: "What fundamental need or desire of my customer am I fulfilling?" If the answer is "a getaway," a competitor could be a luxury spa day, not just another resort.
If you want to learn how to identify indirect competitors for your own company, read our in-depth guide:
The Hidden Competition: How to Identify and Analyze Indirect Competitors.
Indirect Competition in the Travel & Hospitality Industry
Over the past few years, the travel and hospitality industry has undergone a shift in how clients value travel itself. Travel used to be a routine leisure activity for many households; today it increasingly resembles a luxury purchase, with rising costs, economic uncertainty, and tighter personal budgets forcing consumers to reconsider how often and how far they go. According to a Deloitte report, holiday travel demand is cooling across the board, with even affluent households cutting back on trips and opting for more cost-effective alternatives.
This shift has profound implications for competition. Travel is no longer just pitted against other travel products and services. It faces indirect competition from entirely different activities and industries that now compete for the same discretionary time, money, and emotional payoff that travel once commanded.
This industry is also uniquely vulnerable to indirect competition due to several factors:
High Discretionary Spending: Travel is often the first budget item cut during economic uncertainty. Competitors for discretionary income are vast (e.g., new electronics, home renovation, luxury goods).
Experience-Driven: Consumers buy experiences, not just services. A memorable concert, a fine dining series, or a local adventure camp can be chosen instead of a weekend trip.
Digital Disruption: Platforms have democratized access. Why stay in a hotel when you can live "like a local" in an apartment? Why book a tour when you can find a unique experience hosted by a resident?
Blurred Lines: The rise of the "bleisure" traveler (business + leisure) and "workations" means a company like WeWork or a reliable co-living space can compete with hotels for long-term stays.
The Time Factor: Modern consumers are time-poor. A long-haul vacation requires significant time investment. A "staycation" or a series of local mini-experiences might be a more attractive, time-efficient substitute.
Categories of Indirect Competition in Travel & Hospitality
Your Business | Traditional Direct Competitor | Indirect Competitor | Competing For... |
|---|---|---|---|
City Hotel | Another city hotel | Airbnb | Accommodation budget, "authentic" experience seekers. |
Business Hotel | Other corporate hotels | Zoom/MS Teams, Co-working Spaces | Business travel budget, remote work solutions. |
Luxury Resort | Other 5-star resorts | Luxury Cruises, High-End Retail "Experience" | Ultimate luxury discretionary spending, bragging rights. |
Restaurant | Other restaurants | Meal-Kit Services (HelloFresh), Premium Grocery Stores | The "dining out" experience vs. convenient home dining. |
Real-World Examples of Indirect Competitors in Hospitality Industry
Case 1 - Marriott vs Airbnb
Travel / Hospitality Player | Indirect Competitor | Why This Is Indirect Competition |
Marriott | Airbnb | As travel becomes more expensive, travelers reduce trip frequency and choose fewer but longer stays, prioritizing space and flexibility over traditional hotel-based trips. |
Marriott has traditionally relied on high trip frequency: multiple short stays driven by leisure travel, weekend breaks, and business trips. Its value proposition is built around consistency, service standards, loyalty programs, and predictable comfort across destinations.
As travel becomes more expensive and more intentional, many travelers reassess this value proposition altogether. Instead of prioritizing hotel amenities or brand familiarity, they increasingly focus on price, convenience, and comfort that resembles everyday living. Platforms like Airbnb benefit from this shift by offering accommodation, often at a lower total cost and with greater flexibility.
From the customer’s perspective, the question becomes simple:
Why book a hotel at all if I can stay somewhere cheaper that feels more like home?
Airbnb does not compete with Marriott on service levels or loyalty programs. It competes by reframing the decision entirely — shifting demand toward accommodation that optimizes for cost efficiency, comfort, and a local living experience, rather than traditional hotel standards.
Case 2 - Hilton vs Zoom + WeWork
Travel / Hospitality Player | Indirect Competitor | Why This Is Indirect Competition |
Hilton (Business hotels) | Zoom + WeWork | Business travelers increasingly replace short business trips with remote meetings and local coworking, eliminating the need for overnight stays altogether. |
Hilton’s business-focused hotels have traditionally depended on short, high-frequency trips: one- or two-night stays driven by meetings, workshops, and internal alignment. The value proposition was simple — proximity, convenience, and the ability to be physically present.
However, tools like Zoom and WeWork have fundamentally changed this decision logic. Many business interactions no longer require travel at all. Meetings that once justified a flight and a hotel stay are now handled remotely, while local coworking spaces substitute the “being there” aspect without requiring overnight accommodation.
From a customer perspective, the trade-off is no longer which hotel to book, but:
“Do I need to travel at all, or can I achieve the same outcome locally or remotely?”
This makes Zoom and WeWork indirect competitors to business hotels. They do not compete on rooms, amenities, or pricing, yet they eliminate the reason for demand — the need to stay overnight in another city.
Case 3 - Nobu vs Goldbelly
Travel / Hospitality Player | Indirect Competitor | Why This Is Indirect Competition |
Nobu (Restaurant) | Goldbelly | Customers can choose high-end restaurant delivery at home instead of dining out, reallocating leisure time and entertainment budgets toward convenience. |
Nobu is a globally recognized luxury restaurant brand associated with status, experience, and high-quality dining. Traditionally, the value proposition involved going out, securing a reservation, and committing time and effort to the experience.
However, platforms like Goldbelly now offer delivery from premium and upscale restaurants (including Nobu locations in major cities). This creates a clear indirect competition dynamic: customers can access the core value — high-quality food and brand prestige — without the friction of travel, waiting, or long dining sessions.
From a customer perspective, the trade-off is no longer restaurant vs restaurant, but:
“Do I want the full night out, or do I want a high-end dining experience at home?”
This shifts demand away from hospitality as an outing toward hospitality as an at-home experience, without directly competing on cuisine or pricing.
Conclusion
For travel and hospitality businesses, the competitive map is no longer linear. Victory requires a dual focus: excelling in direct competition (better amenities, pricing, service) while actively monitoring and strategizing for the indirect arena.
If you’re looking for more real-world examples of indirect competitors, read our dedicated article on Indirect Competitors in the Entertainment Industry, where we break down how attention, time, and behavior drive competition across platforms.
