While it is difficult to quantify how much business Airbnb is actually taking away from the hotel industry, it is safe to assume that the majority of the 11,000,000 travelers who have booked accommodations through Airbnb over the last six years would have otherwise stayed in hotels. Sean Hennessey, CEO of Lodging Advisors, estimates that the 416,000 Airbnb guests who visited New York for the twelve months ending July 2013 cost the city's hotel industry approximately one million room nights. As Airbnb bookings and listings go up year-over-year, the hotel industry faces an increased siphoning of its clientele. Moreover, similar to when additional hotel supply enters a market, hoteliers may be forced to lower their average rates to increase their occupancy and remain competitive. Airbnb’s rising occupancy penetration levels puts the service in direct competition with hotels, and not just for leisure demand but for commercial travelers as well. There is also another impact on the hotel industry, and this pertains to proposed hotel feasibility reports and valuations of existing hotel properties. Download the white paper at HVS (PDF 1.4 MB)