After the recent acquisition of HotelTonight, If there were any doubt as to Airbnb's true intentions of entering the OTA space and start aggressively competing with online travel agency giants such as Booking Holdings and Expedia, they need to be laid to rest immediately.

The industry has conflicting views of the role Airbnb plays and will play in hotel distribution. Some hoteliers believe that Airbnb is not an ordinary OTA since it "hijacks" travel demand and diverts traditional hotel guest to private accommodations. Airbnb has already "hijacked" 10%-15% of the travel demand in many major metropolitan areas and leisure destinations such as New York City, Paris, and London. This affects negatively overall occupancy and hotel room pricing and hoteliers are unable to raise ADRs in periods of traditional peak demand. According to Morgan Stanley Research, 50% of survey respondents in the US, UK, France, and Germany reported that they booked an Airbnb in place of a traditional hotel. In other words, Airbnb is diverting traditional hotel guests to private accommodations.

Other hoteliers welcome the entry of Airbnb in the hotel distribution mix, since they believe Airbnb adds another option to the existing duopoly of Booking Holdings and Expedia.

What is your take on the subject?

Peter O’Connor
Peter O’Connor
Professor of Strategy at University of South Australia Business School
Max Starkov
Max Starkov
Hospitality & Online Travel Tech Consultant
Daniel Craig
Daniel Craig
Founder & Chief Strategist, Reknown
Cindy Estis Green
Cindy Estis Green
Co-founder and CEO, Kalibri Labs, LLC
Alessandro Inversini
Alessandro Inversini
Associate Professor in Marketing at EHL Hospitality Business School
Martin Soler
Martin Soler
Partner at Soler & Associates
Larry Mogelonsky
Larry Mogelonsky
Partner at Hotel Mogel Consulting Ltd.
Linchi Kwok
Linchi Kwok
Professor at The Collins College of Hospitality Management, Cal Poly Pomona
Ally Northfield
Ally Northfield
Director at Revenue by Design
Meng-Mei Maggie Chen
Meng-Mei Maggie Chen
Assistant Professor at EHL Hospitality Business School
Mark Fancourt
Mark Fancourt
Co-Founder at TRAVHOTECH
Alan Young
Alan Young
Strategist
Klaus  Kohlmayr
Klaus Kohlmayr
Chief Evangelist and Development Officer, IDeaS