Airbnb is an online “community” marketplace and short-term hospitality service that connects people who want to rent their homes and people who want to travel or are traveling and are looking for accommodations. Members use this service to offer or arrange lodging, tourism experiences, or homestays. This online marketplace is accessible through its websites and mobile apps. This global company, headquartered in San Francisco was founded in 2008 and has become increasingly popular throughout the years.
Airbnb has greatly benefited travelers but not so much hotels. Travelers are able to find more options and availability of rooms in famous cities and at cheaper rates. Their properties can include; apartments, single rooms, houseboats, a suit of rooms, moored yachts, or houses. It becomes especially popular during holidays or various big events when hotels get booked and rooms are scarce. Even when there are hotels available some tourists prefer to use Airbnb, leaving hotels with lower commercial rates.
Higher priced hotels are starting to show a decline in their revenue. Most hotel owners and managers are not as concerned about this issue because many hotels maintain their promises for customer satisfaction. It will be interesting to see how much this changes in the next few years.