A research paper from Boston University’s School of Management found that a 1% increase in Airbnb listings results in a 0.05% decrease in that market’s quarterly hotel revenues.
“Results suggest that market entrants such as Airbnb can pose a legitimate competitive threat to the hospitality industry going forward,” the study posits. The research showed that budget hotels are the most impacted by Airbnb in terms of lost bookings, while luxury hotels and hotels with MICE facilities are not significantly affected.
The study looked at the Texas market from 2008 to 2013, gathering data from the Airbnb website, the Texas Comptroller Office, Smith Travel Research, county demographics from the U.S. Census Bureau, and the Current Population Survey from the U.S. Bureau of Labor Statistics.
Click here for a PDF with a full report on the research study.