
Estimating the Impact of Airbnb on the Hotel Industry [pdf] - jtraffic
http://people.bu.edu/zg/publications/airbnb.pdf
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jtraffic
Abstract: "We analyze Airbnb's entry into the state of Texas, and quantify its
impact on the Texas hotel industry over the subsequent decade. We estimate
that in Austin, where Airbnb supply is highest, the causal impact on hotel
revenue is in the 8-10% range; moreover, the impact is non-uniform, with
lower-priced hotels and those hotels not catering to business travelers being
the most affected. The impact manifests itself primarily through less
aggressive hotel room pricing, an impact that benefits all consumers, not just
participants in the sharing economy. The price response is especially
pronounced during periods of peak demand, such as SXSW, and is due to a
differentiating feature of peer-to-peer platforms  enabling instantaneous
supply to scale to meet demand"

