(MENAFN- ValueWalk) Airbnb has shaken up the and short-term letting market by to both landlords and renters. However, while Airbnb has helped non-professional landlords, it has become a threat to the hotel industry.
According to a report from Morgan Stanley, Airbnb is on track to rack up more than 100 million stays this year. Based on figures from 2016, half of these visitors will use the service to replace a traditional hotel stay. But the company still only represents a tiny sliver of the Hotel industry with the company only accounting for 6% of the hotel industry's room supply, 4%of demand and nearly 7% of its revenue within the US according to commercial .
One of the reasons Airbnb has been able to grow so fast the company received in most markets during the early stages of its life. Unfortunately, as the company has grown, its started to attract more attention from regulators, especially in cities such as Paris, New York, San Francisco, Barcelona, Amsterdam and Berlin where the company's hosts are seen as a menace trying to make the most of short-term rentals when there's a lack of affordable housing for resident workers. The Hotel industry has been pushing hard against companies like Airbnb which they see as a threat to their survival.
Airbnb: Regulation Is Having An Impact On Listed Nights
Regulations are having an impact on the company's growth according to a new report from . In cities where regulation has been introduced (see above) growth in the number of listings has fallen below 10% year-on-year for the first half of 2017. Berlin showed a 10% decline compared to "material growth" in the comparable period.
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Still, despite the slow down in growth in these cities, UBS Evidence Lab data shows that in the 127 markets tracked, Airbnb gross bookings have grown by c50% since the beginning of the year reaching $5 billion in gross bookings from January to July. Moreover, according to the research, regulation appears to be impacting hosts more than guests:
"We believe regulation impacts hosts more than guests, and therefore has a more direct impact on supply, with a knock-on impact on demand. Supply (available listing nights) grew at c40% and demand (listing nights booked) at c50% worldwide over the last 6 months, with occupancy rates worldwide having grown by 4ppts (to c55%)."
The US remains the single-largest country for Airbnb in terms of listing nights available and booked for hotel-comparable properties, with almost 8 million listing nights booked since the beginning of the year. France is the second-largest market followed by Italy.
The three countries continued to grow (in terms of listing nights booked) at between 30% to 40% year-on-year since the beginning of the year. Even though the US tops the chart for the most active market, according to UBS data, Paris continues to be the largest Airbnb city by listing nights available and booked, with over 3 million nights booked since the beginning of the year followed by London, which has overtaken New York (now fourth) and Tokyo is in third place. New York has seen no growth since the beginning of the year, likely negatively impacted by regulation.
Based on this data, the team at UBS concludes that Airbnb no longer poses the same threat to the hotel industry as it did this time last year because regulation is clearly slowing the company's dominance.
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