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The impact of Airbnb on hospitality industry

Airbnb has made a huge impact on the modern era. The rapid growth of Airbnb has become the great threat to the hospitality and hotels industry. In this modern era the demand of Airbnb is increasing day by day which has affected the demand of hotels.

Airbnb has rapidly growth in the market as it provides cheap rates according to the other hotels in the area. People are greatly affected by these money saving techniques provided by Airbnb.

It has spoiled all the hospitality services including front office, housekeeping, kitchen and all the other specific areas in the hotel required. Including that it has also decreased the supply of accounting or marketing supply in the market as in hotels these are the specific areas to work on.

Airbnb has quickly become a great threat to the hotel industry as people choose to book a room through Airbnb rather than staying in a luxurious hotel. Airbnb was found in August 2008 and described as a “Social website that connects people who have space to share with those who are looking for a space to stay”.  Since it was found in 2008, it experienced a rapid growth in a very short span of time. Since its launched, Airbnb has grown very quickly from a few hundred bookings in 2008 to over ten million nights booking in 2012. Airbnb listing more than 300000 properties in 192 countries. Hotel industry also experiences a decrease in revenue due to the rapid growth of Airbnb in the market.

As we go through this chart, there is huge increase in Airbnb listing from 2009 to 2015 in popular tourist cities like London, Sydney, New York, and Paris. Paris is one of the major Airbnb market. In a recent survey results by HVS (Hospitality Valuation Services) founds that hotel industry loses up to $450 million direct revenue due to Airbnb. In between September 2014 and August 2015, data is found that 4,80,000 hotel rooms nights were reserved while over 2.8 million rooms nights were booked on Airbnb. By 2018 HVS Estimate those room nights will reach up to 5 million per year. Airbnb also affecting the number of jobs in Hospitality Industry. According to a recent survey over 2,800 jobs were lost in hospitality industry due to Airbnb. A loss of near about $200 million income for Hotel Employees.  The increasing number of Airbnb listing also have a negative impact on rental property market.  For Example, Airbnb is banned in Berlin to protect the property supply and to keep the rent as low as possible.  Nowadays people are interested in putting their home on Airbnb for short - term dates rather than long- term leases to residents has created a great downfall in rental property market. In future each additional 10 percent increase in the number of Airbnb Guests will result in a 2-3 percent decrease in hospitality industry. It is found that the total effect of Airbnb on hotel industry and NYC Government is $2.1 billion annually. As Airbnb continue to grow with a rapid rate these effects will only increase.

The first trend that is indispensable in hotel services is Airbnb. Emerging from recent years, Airbnb brings visitors from around the world the greatest and exciting experiences. Price-wise, the field is leveling. There are some reasons which make Airbnb become a believable brand for customers in the hotel industry:

1.  Live like a local: You will experience being a local when travelling because you can immerse in neighborhoods, condos, and town-homes in that town or city.

2. Flexibility: If you regularly must worry about check in and check out, Airbnb is very comfortable. Not only that, the cancellation policy can also be negotiated.

3. Amenities: The special thing that most hotels cannot offer customers is the comfort that Airbnb offers. When choosing Airbnb, you can have a fully equipped kitchen for cooking. In addition, most have a washing machine and dryer that saves you a great deal of money in laundry and is especially suitable for those who do not like keeping dirty clothes.

More information: Reasons to Choose Airbnb  

 To the extent directors are concerned, the opposition their inns look from shared stages has a few one of a kind highlights that separate it from competition with different things. Firstly, the Airbnb stage has close to zero cost, in that another room can be added to the stage with unimportant beyond., Airbnb can measure supply in a close friction-less way to take care of demand, even on short periods. By differentiate, expanding accommodation rooms supply includes build-out, causing critical marginal expenses for inn networks. Secondly, Airbnb offers a significantly more extensive scope of items and administrations than accommodation provided: Airbnb clients can lease anything from a flat to a single room. More importantly, on the grounds that Airbnb use existing accommodation stock, it can possibly extend supply wherever houses and condo structures are getting exist. This is as opposed to inns, which must be worked at areas as per nearby zoning fundamentals. In this way, challenge via Airbnb is possibly harder for occupants to adjust to, contrasted with opposition by other inn firms.

Short introduction video:- https://youtu.be/-XSAqfK_UwY

References-: https://www.hospitalitynet.org/opinion/4074708.html

In what year Airbnb is created? And from where it is originated?

In what aspects Airbnb is better than other competitors?

How Airbnb has affected the jobs of hospitality?

What is initial percentage that Airbnb rises every year?