“I feel the Airbnb sector gets unfairly blamed for many ills present long before this came about,” says Dickins. “Yet we don’t talk about the ways in which the city has been improved, better restaurants, better retail outlets as well as the increased employment opportunities.”
Source: How Airbnb took over the world
All the tech-driven competition in hotels:
“We have seen more and more business shift to our direct channels. We’ve seen loyalty continue to drive a higher share of the business that is coming into our hotels. And we think we’re competing or we compete against these platforms quite well.”
Original source: Marriott CEO on Tech Giants: ‘We Are in an Absolute War for Who Owns the Customer’
There’s all sorts of fun findings and theories in this study of AirBnB’s effect in the hotel market in Austin and Dallas. The easiest one is that it lowers pricing by 8-10% for the non-business traveler segment:
As Airbnb has its roots in casual stays, including those involving shared accommodations, we expect it to be a more attractive option for travelers on a budget. Conversely, business travelers and vacationers who frequent high-end hotels are two examples of consumers we argue are less likely to substitute a hotel stay with an Airbnb stay.
There’s also some interesting commentary on the very fixed assets of traditional hotel companies verses the agility of AirBnB:
– It’s impossible to rapidly increase the supply of hotel rooms to meet demand: it takes an average of 4 years to build new hotels, so you can’t really meet rising demand even on an annual basis.
– In contrast, the AirBnB supply can expand and contract on a daily basis as people decided to list and delist their rooms and houses.
– Of course, AirBnB demand is cap’ed to the number of fixed houses and apartments in an areas…but companies to hotel rooms, that supply seems infinite. (There’s an interesting analogy to public cloud here.)