Although this impact seems small, consider Airbnb’s phenomenal year-over-year growth rate when measuring the company’s impact on hotel room revenues. Accordingly, every time Airbnb’s supply doubles – which is its average yearly pace since inception – hotel revenues fall 2%.

The impact on average room prices and occupancy rates was similar but smaller. Room prices fell 0.003% to 0.03% for every 1% increase in Airbnb supply, while hotel occupancy declined by 0.008% to 0.1%.

Perfecting Private Accommodations: Airbnb vs. Expedia