As Airbnb grows, this is exactly how much it’s bringing down hotel prices and occupancy

Source: Tarik Dogru, The Conversation, May 24, 2019

…. Research I recently conducted with colleagues Makarand Mody and Courtney C. Suess studied Airbnb’s impact on hotels’ performance in 10 major U.S. cities to determine how the fast-growing company has influenced three key metrics: room prices, hotel revenues and occupancy rates. Our research included data from 2008 to 2017 in Boston, Chicago, Denver, Houston, Los Angeles, Miami, Nashville, New York, San Francisco and Seattle.

In those cities, the number of properties on Airbnb – from room shares to entire houses – surged from just 51 in its first year of operation to more to 50,000 five years later and to over half a million in 2017. ….

….[A]nother important factor is the lack of regulation Airbnb faced during its first decades, which gave it more flexibility and made it easier to add new properties to its inventory.

While this is now changing as cities clamp down, this provided Airbnb with a significant competitive advantage against the hotel industry. Indeed, the typical regulatory framework in cities across America means it can take several years to add a new hotel to the market and requires permits, adherence to safety codes and more tax collection…..

See also:
York County gets small revenue boost thanks to new Airbnb tax regulations
Source: Lindsey O’Laughlin, York Dispatch, May 29, 2019

Municipalities and state eye regulation for Airbnb, growing home-sharing industry
Source: Joe Cooper, Hartford Business, May 27, 2019

City exploring Airbnb zoning, tax questions
Source: Rosalind Essig, Journal Courier, May 20, 2019

Airbnb guests would pay sales tax under proposed bill
Source: Diane Rey, Maryland Reporter, March 3, 2019