New Research Measures Airbnb's Massive Industry Footprint

The world hasn't been the same since Airbnb launched in 2008 and quickly grew in popularity.

2 minute read

May 30, 2019, 2:00 PM PDT

By James Brasuell @CasualBrasuell


Luxury Hotel

Tupungato / Shutterstock

New research by Tarik Dogru and colleagues Airbnb’s impact on hotel performance in ten major U.S. cities, measuring effects in terms of room prices, hotel revenues, and occupancy rates. Dogru writes for CityLab to explain the new research.

According to Dogru, the "exponential rise" of Airbnb was made possible by increasing demand for "authentic" short-term rental experiences (i.e., in people's homes, not hotels) and a lack of regulations. 

While this is now changing as cities clamp down, this provided Airbnb with a significant competitive advantage against the hotel industry. Indeed, the typical regulatory framework in cities across America means it can take several years to add a new hotel to the market and requires permits, adherence to safety codes, and more tax collection.

According to the research, "these advantages translated into a significant impact on the hotel industry in terms of revenues, prices, and occupancy rates." In New York City alone, the hotel industry lost an estimated $365 million in 2016 alone, according to Dogru.

Also worth noting is Airbnb's effect in the high-end hotel market.

That suggests the company has successfully pushed to provide more unique experiences across the spectrum, and now there’s a large inventory of more “luxury” experiences on the platform where one can rent designer homes and unique accommodations like cabins, boats and even treehouses—all of which tend to be in the higher price range.

Dogru presents several more key findings from the research, and concludes with a warning that despite new regulatory changes, the hotel industry should expect Airbnb to be a powerful industry presence in the future.

Wednesday, May 29, 2019 in CityLab

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Google street view of red brick multi-story power plant building in Pittsburgh, PA.

Defunct Pittsburgh Power Plant to Become Residential Tower

A decommissioned steam heat plant will be redeveloped into almost 100 affordable housing units.

July 4 - Pittsburgh Post-Gazette

Cyclist on protected bike lane in middle of street in Washington D.C. with Washington Monument obelisk visible in background.

Trump Prompts Restructuring of Transportation Research Board in “Unprecedented Overreach”

The TRB has eliminated more than half of its committees including those focused on climate, equity, and cities.

July 4 - Streetsblog USA

Blue and silver Amtrak train at small station.

Amtrak Rolls Out New Orleans to Alabama “Mardi Gras” Train

The new service will operate morning and evening departures between Mobile and New Orleans.

July 3 - New Orleans City Business