Ever since the AirBnB company was created, the hotel industry has started to study the overall impact of what this company is actually doing to their revenues, but only recently a startup based in San Francisco created an ample study that was created specifically to see how much money AirBnB makes in specific region!
According to them, AirBnB gets no less than $451 million in revenue from New York alone, and the number it set to double in 2018 if the growth rate remains like this. As you would expect, this is a massive number, one that manages to bring in front the worries of all hoteliers, which clearly state that the industry might be falling in those regions where AirBnB is going strong.
Of course, most of that revenue would have been acquired by the hotelier industry, however it seems that the ease of use offered by AirBnB, combined with the lower pricing rates, makes the company a much better choice for people instead of hotels that still remain quite expensive, no matter where you would go.
Hotel owners in an individual manner also tend to think that the AirBnB growth is something that can hamper some of their market range, but Adam Aron, chief executive officer of Starwood Hotels & Resorts Worldwide Inc does believe that the industry is large for all players that come in it. The same thing is shared by Christopher Nasser, CEO of Hilton Worldwide Holdings Inc, which also thinks that AirBnB has grown quite a lot, but not enough to pose a threat to them, which is quite interesting.
Hotels are bringing in the larger portion of sales in the accommodation industry, so AirBnB is still going to improve their game if they want a larger piece of the pie, but the reality is that there are plenty of benefits to be had for all players in the industry thanks to this great company.
The report however showcases that AirBnB is indeed growing because they are the ones bringing people in the city in the first place, so the profits that they can acquire are definitely huge, which is really nice for sure.
You might seem the 8% revenue share from the entire hotel industry as being small, but Airbnb didn’t exist 7 years ago, and it does go against mammoths in the industry. This clearly shows that the company does a lot of stuff right and since some hotels are experiencing losses in the areas where Airbnb is active, you can understand why some can see Airbnb as a threat. Hilton and Starwood might not see it as such for the time being, but one thing is certain, Airbnb is growing and their growth will definitely encourage competition in the hotel industry, which is great for all of us, especially consumers!