For example, in New York City, Airbnb comprised 9.7% of accommodation demand, equaling approximately 8,000 rooms per night in Q1 2016 (Lane & Woodworth, 2016). These supply increases are also fueling Airbnb taking an increasing share of the accommodation market pie. Brands that felt the impact the most were those in the midscale and luxury segments, with a decrease in RevPAR of 4.3% and 2.3% respectively. In 2016 alone, this 2.5% decrease in RevPAR amounted to $5.8 million in revenue lost by hotels to Airbnb. In Boston, RevPAR has decreased 2.5%, on average, over the last ten years due to Airbnb supply increases. The impact of Airbnb on ADR and occupancy was less severe. Surprisingly, it was not just the economy but also the luxury hotel segment that was hard hit by Airbnb supply increases, experiencing a 4% real decline in RevPAR. While these numbers may not appear substantial at first, given that Airbnb supply grew by over 100% year-on-year over this ten year period means that the вЂњrealвЂќ decrease in RevPAR was 2%, across hotel segments. between 20 caused hotel RevPAR to decease 0.02% across all segments. A recent study by Dogru, Mody, and Suess (2018) found that a 1% growth in Airbnb supply across 10 key hotel markets in the U.S. The Past: How does Airbnb impact the hotel industry?ДЄirbnbвЂ™s disruption of the hotel industry is significant, both existentially and economically. Not only are hotels looking to add homesharing-like attributes and experiences to their properties, to more effectively compete with Airbnb, but are also looking to tap into the platform-based business model that underlies AirbnbвЂ™s success. The next stage of this battle involves competition and integration. The association is arguing for a level playing field between homesharing and hotels (and rightly so).

The hotel industry began to realize they had something to worry about.ДЄ stage of denial was followed by the American Hotel & Lodging Association (AH&LA) attacking Airbnb by sponsoring research to demonstrate its negative impacts on the economy and lobbying governments to impose taxes and regulations on homesharing. Over the years, as Airbnb become more successful and grown to being larger than the companies in the hotel industry, the rhetoric has changed. Both the industry and Airbnb claimed they were serving different markets and had different underlying business models. Airbnb and the Hotel Industry: The Past, Present, and Future of Sales, Marketing, Branding, and Revenue ManagementДЇor a long time, the hotel industry did not consider Airbnb a threat.

Hotel industry threat of new entrants