19% of all travellers now choosing airbnb and not hotels.
This is predicted to rise to 25% by 2018 *
That threat, says Morgan Stanley Research, is greatest for hotels because “Airbnb usage has increased more than we thought it would and cannibalization of traditional hotels has also been higher.”
Looking at data collected in 2015 and 2016, Morgan Stanley noted a significant increase in the number of travelers who have used Airbnb in the last 12 months. In 2015, only 15 percent of leisure travelers surveyed had used Airbnb in the last 12 months, while in 2016, that number rose to 19 percent.
Morgan Stanley predicts that number to rise to 25 percent in 2017.
Among those surveyed, approximately 49 percent also said they had replaced a traditional hotel stay with an Airbnb stay in 2016. In 2015, 41 percent had done so. Morgan Stanley predicts this number will remain steady throughout 2017 and Airbnb’s cannibalization of hotels business will hover at approximately 50 percent for both business and leisure travel.
Morgan Stanley did, however, also note that respondents said Airbnb was a replacement for bed and breakfasts (37 percent), staying with friends or family (35 percent), extended stay hotels (26 percent), vacation rental sites (22 percent), and corporate apartments (20 percent).
Not only does Morgan Stanley believe the number of Airbnb users and room nights will continue to grow, but it also estimates that Airbnb will have a direct negative impact on hotels’ ability to maintain the same levels of occupancy and nightly rates that they have in the past year.
* Morgan Stanley Research 2016
With the huge choice and value offered by staying in a home rather than a hotel it is hardly surprising that we are seeing this trend play out.
Hotels have had us in a corner for too long; restricting numbers in rooms, charging for cots, charging for breakfast on top of exorbitant room rates, charging for late check out. It is empowering to be able to make a different considered choice for our get aways.