The latest report showing Airbnb’s increasing encroachment into the hospitality industry was just released by the American Hotel & Lodging Association. The AH&LA is one of the oldest organizations that represents the U.S. lodging industry. They commissioned a yearlong study prepared by Penn State University’s School of Hospitality and Management that covered the 12 largest U.S. markets.
The study pulled statistics on those Airbnb hosts that rented 1 or more units and those that rented their units year round or “full time”. Some study findings show:
- Full-time operators account for 30% of Airbnb’s revenue
- Operators of 1-2 rented units drives 40% of the company’s revenue that translates into more than half billion dollars a year.
Though impartiality of this study might come into question, we would have to be hard pressed to ignore studies conducted by other organizations and educational institutions that support the increased economic impact Airbnb operations has on the hospitality industry for revenue, prices, occupancy rates etc. not to mention a loss in tax revenue. Odds are that Airbnb will not take over the hotel industry but it does force hotels to take their presence seriously and do what is necessary to stay competitive.