Less than a decade since its launch, Airbnb has already emerged as a significant threat to the hotel industry, according to a recent study from CBRE Hotels’ Americas Research.
The advisory group, which specializes in providing research and consulting services to the hotel industry, found that travelers spent $2.4 billion on Airbnb rentals from October 2014 to September 2015. Although that figure represents less than two percent of the $141 billion hotels raked in over that period of time, it signals a notable rise when compared to the same period the previous year.
The study also found that a majority of the $2.4 billion (55 percent) was spent in five major U.S. cities: New York, Los Angeles, San Francisco, Miami and Boston.
Based on the Airbnb Competition Index developed by CBRE Hotels, New York’s hotel market is at the greatest risk, followed by San Francisco, Miami, Oakland and Oahu.
“The fluid nature of Airbnb’s supply suggests that traditional hotel’s historic price premiums realized during peak demand periods will be mitigated,” CBRE Hotels’ senior managing director R. Mark Woodworth told USA Today.
CBRE Hotels’ study comes on the heels of a study commissioned by the American Hotel & Lodging Association (AH&LA) suggesting Airbnb is profiting off of “illegal hotels.”
The study found that Airbnb’s revenue relies heavily on full-time hosts (renting out units 360 or more days out of the year) and that hosts renting out multiple units account for a significant portion of Airbnb’s hosts. However Airbnb has disputed the study’s findings.
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