Is Airbnb taking out the hotel industry? According to a recent survey “from Goldman Sachs Group Inc. shows that once they (consumers) switch, they don’t go back to hotels,” as reported by Bloomberg Business. More and more people not wanting to go back to hotels after using Airbnb is certainly some troubling news for the hotel industry.
Is Airbnb Taking Out The Hotel Industry?
“If people have stayed in peer-to-peer lodging [P2P] in the last five years, the likelihood that they prefer traditional hotels is halved (79 percent vs. 40 percent),” the data showed. “We find it interesting that people ‘do a 180’ in their preferences once they use P2P lodging. They move directly from preferring traditional hotels to preferring P2P accommodations.”
The growth in the industry was on full display at this year’s Super Bowl. Airbnb, one of the most well-known P2P sites, anticipated 15,000 people booking home rentals for Super Bowl 50 in the Bay Area, four times more than the previous game in Phoenix. With a $25.5 billion valuation, the company is worth more than Macy’s Inc. and Best Buy Co. combined.
I obviously am a very avid collector and redeemer of hotel points. Mrs. Weekly Flyer and I have redeemed some insane number of points at some of the finest SPG, Hyatt, IHG and Marriott properties around. But, as we get older and now have 2 kids, we are finding the hotel options available to us as a family of 4 more limited and find ourselves opting for Airbnb over hotels when we travel as a family mainly to get more space, a kitchen and more! Unless we can redeem for a big enough suite and confirm it before we get there we are booking Airbnb more and more. This article speaks to exactly what we have been doing and apparently a lot of other folks have been as well.
Certainly, hotels still have a spot in our travel plans especially if we are traveling without the kids and when I travel for business, of course I am in a hotel every time. But, Airbnb is rivaling my hotel bookings this year, with only 1 out of 5 of our family trips for the first half of the year booked at a hotel. Wow! How about you? Do you find yourself in line with the results of this survey? Do you AirBnB? If you haven’t tried it yet, you can get $20 towards your first Airbnb rental when you sign up here.