As long as Airbnb’s grow, hotels feel themselves in danger more, then they face the lower hotel price truth in order to attract more customers.
According to report released from Merrill Lynch investment , analysts says home renting giant Airbnb will grow %40 to %50 per year and they already cover %1.2 of the hotel demand of the customers right now. If they grow that fast, they could raise their merchandise inventroy as %.43 by 2020.
They also express:
“Our preliminary work suggests Airbnb is a force to be reckoned with that is likely to have an increasing impact on the travel landscape,”
If they widen their market share with that fast, they meet consumer demand and this will be a clear challenge for hotels because cheap and comfortable way of staying always attract travelers.
According to Market Watch website :
“Consumer demand for lodging is expected to outpace hotel room supply in 2016 and 2017, but if Airbnb rooms are included in the mix, supply and demand could be balanced in 2016. Then, with Airbnb included in 2017, room supply will be higher than demand and will continue to grow with Airbnb’s growth rate. ”
In 2014, Airbnb booked approximately 40 million room, anaylyst also forecast that Airbnb’s 2015 room book number will be over 100 million. Then they become a main rival for hotels with the %67 of Airbnb rooms compete with hotel rooms.
Airbnb’s value is $25.5 billion total.