Morgan Stanley: 3 Reasons Why Hoteliers Shouldn't Worry That Much About Airbnb
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The hotel industry can breathe a sigh of relief when it comes to Airbnb—at least that's what a Morgan Stanley report says. Polling 4,000 travelers, the research note says the real industry at risk is online travel agencies (OTAs) like Expedia and Priceline. Here are three reasons why hotels can rest easy.
1. Airbnb targets leisure more than business travel.
Like OTA guests, Airbnb clientele usually books trips for fun, whereas hotel guests usually stay on business trips. The survey found that only 42% of Airbnb customers are eschewing hotels and book to stay three to five nights.
2. Airbnb also attracts customers who don't even use hotels.
There are other, less traditional lodging options that are being replaced. The survey found 36% of Airbnb customers to have switched from bed and breakfasts and 31% from friends and family.
3. Airbnb's demand hurts travel agencies more than hotels themselves.
Morgan Stanley predicts that if Airbnb was actually hurting hotels, then they would just team up with the home-share site to throw OTAs under the bus. But that's not the case. OTAs and Airbnb already differentiate on what they charge hosts and hotels, with Airbnb cutting the better deal. So Airbnb could raise rates and hotels would still profit. [Bloomberg]