Airbnb is the leading online provider of private accommodations.
Airbnb is a community-based marketplace that allows private homeowners to list their homes—or parts of them—online.
On this social network, accommodations are offered at the price set by the platform. Using a calculator feature, anyone can determine for themselves how much income they can earn from their own accommodation. A service fee is charged for bookings, calculated as a percentage of the total booking amount (approx. 3–5%).
So the advantages are obvious: It’s an easy way to make money, the website works very well, and making reservations is easy.
Now for the crucial point: To what extent will the hotel industry be affected by this?
AIRBNB VS. HOTELS
A study conducted between 2013 and 2016 shows that many people believe Airbnb is a simple way to find lodging and that its market share is small. Unfortunately, partly because of this assumption, most hotels failed to anticipate the competition. During this period, the hotel industry was certainly capable of adapting to the changing times and adjusting its prices without reducing the quality of its services.
One out of every two rooms rented through Airbnb is intended for stays of 7 nights or more. When competing directly with hotels, users prefer the Airbnb option for longer stays. This comes as no surprise to industry experts.
The latest analyzed data shows that both sectors have grown in parallel—neither has taken market share away from the other. Airbnb has been growing since 2008, and starting in 2009, when the economic crises began, the company has expanded its reach beyond the United States.
Users looking to save money have discovered that Airbnb offers a new opportunity to do just that. Now, with a few years of practical experience under their belts, it appears that—provided economic conditions aren’t too bad—business has stabilized, hotel guest numbers have risen, and Airbnb’s guest numbers have declined slightly.
Nevertheless, many hoteliers view Airbnb as competition and complain that they are stifled by government regulations, while Airbnb, under the guise of being a “private provider,” is not required to comply with any regulations at all.
It is still too early to tell which type of housing will ultimately gain a foothold in the market.
