Morgan Stanley analysts Brian Nowak and team explain their perspective: “Our 4k person survey shows 12% of travelers have used Airbnb & adoption is rising despite awareness, privacy, and safety hurdles. We think investors overestimate Airbnb’s threat to hotels – <50% of use cannibalizes hotels and hotels over-index corporate– but underestimate its threat to OTAs.” The MS report notes that Airbnb traveler penetration is already at 12%, and the team projects penetration to hit 16-18% within a year or so. The MS survey suggests that 12% of leisure and business travelers have used it at least once, with penetration expected to increase over the next 12 months (18% for leisure and 16% for business). One could argue this means it has started to peak, but Nowak et al. see room for more growth as users are 90%+ satisfied and because just 41% of the survey sample is even aware of the service today. Of noted, among the sample group that had heard of Airbnb, a solid 25% of them have tried the service. Surprisingly, the MS survey also suggests that Airbnb users are wealthier than other travelers, with around two-thirds of U.S. users bringing home $75,000 a year. This contradicts the popular belief users of the service are mainly college students or others with lower incomes. The survey also shows price is the primary reason (55%) that most people use the room booking service, which again implies the service could have broad popular appeal over time Get the full story at ValueWalk