Airbnb: unexpected side effect of company success

The US economy is in the midst of a technological transformation that radically changes the way people sleep, work, eat, buy, love, read, and interact with each other.

Фото: Depositphotos

And each startup contributes to this process. Edition The Atlantic figured out how the success of the home rental company affected the Americans and the American economy Airbnb.

airbnb - this is a new kind of aggregation platform. The portal that connects producers and consumers in the rental market - as Facebook for content Amazon for commerce or Uber for a taxi.

Five years ago, a breakthrough force airbnb intended to seriously compete with hotels, if not to make their existence unnecessary, persuading young people to move from large hotel chains to free rooms of strangers. Since then, it has experienced impressive growth, one of the most impressive among the companies established in the 21st century. Today capitalization airbnb is $ 31 billion, and this is the second “startup” in size (if that word is still applicable) in the US after Uber. Every year the company’s revenue doubles.

But the hotel business is from success airbnb never hurt, but rather the opposite. 2017 was the best year for hotels in the USA. Prices for shares of large hotel companies Marriott and Hilton over the past 12, the months have increased by 40%.

Let's remember what the market was like before it appeared airbnb. In most cases, apartments for the sea or mountain resorts specially bought for this purpose were rented out for short-term vacation rentals. To rent such housing, it was required either a personal acquaintance with the owners, or the assistance of local real estate agencies. At the same time, most of the hotel chains in major US cities were (and continue to be) near business centers, where local residents work, but almost never sleep or walk.

Advantage airbnb is that the service allowed travelers to live in the same place as the locals - within walking distance of the best restaurants, bars and other points of attraction. For business travel people rather prefer hotel services. airbnb but for a pleasant price it offers to feel local, besides providing additional income to the residents of the city.

The company has a very specific target audience - relatively wealthy young people living in cities. According to the agency MoffettNathanson, half of the bookings through the service were made by persons under 35 years, while the trips were mostly not business, but tourist. airbnb had a significant impact on the way people travel to large cities: over the period from 2010 to 2015, the share of travelers in the US, preferring private apartments, increased 4 times.

Percentage of US citizens who prefer to stay in private apartments for the duration of the trip

Why was the hotel business hurt?

First, during business travel, people still prefer to stay in hotels: more than 90% bookings through airbnb committed for tourist trips. Secondly, do not be Airbnb, perhaps prices for hotel accommodation would skyrocket. The construction of new ones has stopped as a result of the global economic crisis of the year 2008. When the economic situation stabilized and people began to travel again, a sharp rise in prices among the few hotels in major US cities seemed inevitable. That did not happen. airbnb made it possible for many travelers to stay overnight - and on business trips as well. The growth of the rental market for private apartments increased the supply and made it possible to avoid a rise in prices for hotel services.

For now, all this seems like a wonderful change: airbnb gives a roof over the head to a greater number of visitors, young travelers can better feel the way of life of local residents, and prices for accommodation have not increased.

But success airbnb led to dubious consequences, mainly because of its commercial component: homeowners in the city center, especially if they live elsewhere, put it out for rent all year round, like a hotel room.

But the more apartments are made available to users. airbnbthe less chance of moving to the local area. High demand with reduced supply leads to higher prices. Studies conducted by several major universities have confirmed: airbnb responsible for rent growth in whole districts.

Press office airbnb in response, he gives several arguments, arguing that the service does not contribute to the growth of rent. First, the majority of users do not offer their main place of residence for rent, and if they did not rent apartments to tourists, they would be empty. Secondly, the service, in collaboration with the governments of several cities, has drawn up rules that do not allow users to turn their accommodation into a hotel like one.

In fact, to share airbnb there is not so much housing in the center, so that the service becomes the main reason for the rise in prices in large cities. But the basic principles of economics are quite simple. airbnb not just competing with hotels: service often competes for housing with local ones. because of airbnb the rise in real estate prices in the central regions did not hit the travelers, but the citizens, as it provoked a decline in prices for hotel services, simultaneously affecting the growth of rent.

airbnb created competition for hotels, allowing travelers to rent apartments. However, the convenience of tourists exists at the expense of local residents, on whose shoulders lay the increased rent.

Text translation prepared edition Telegra.ph.

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