What is the Airbnb effect on the global tourism industry? (2024)

FAQs

How has Airbnb impacted the world? ›

Despite causing revenue losses and job displacement in the hotel hospitality industry, Airbnb's model has resulted in substantial financial benefits for communities worldwide. The platform's influence extends to increasing guest visits to lesser-known destinations, stimulating economic growth.

The so-called “Airbnb Effect” can hollow out once-vibrant communities. This effect is most visible in popular vacation hot spots. In Hawaii, for example, out-of-towners have bought up so many homes that few are left for Native Hawaiians.

Research based on data from 2014 showed that in the ten US cities with the largest Airbnb market share, 1.3% fewer hotel nights were booked, resulting in a 1.5% loss in hotel revenue. Over the last five years, those losses have continued to add up.

Disrupting the Traditional Hospitality Industry

Airbnb disrupted the traditional hospitality industry by offering an alternative to traditional hotels and resorts. It opened up a whole new market of unique and affordable accommodations, allowing travellers to experience a destination from a local's perspective.

Airbnb offers hosts a relatively easy way to earn some income from their property. Guests often find that Airbnb rentals are cheaper and homier than hotels. Airbnb makes the bulk of its revenue by charging fees to both guests and hosts.

Airbnb offers diverse economic benefits, including additional income for homeowners, new jobs, and more tax revenue. Travelers benefit from unique experiences and cultural immersion, fostering deeper connections with local neighborhoods.

Travel on Airbnb supported one million jobs

These jobs generated an estimated $50 billion in income for workers in key industries,³ and with many Airbnb listings located in areas without hotels, this income benefits people in communities outside traditional tourism hubs.

Consumers were dependent on existing or established businesses in the market to provide opportunities for low-value consumers. Airbnb has shifted this model. Consumers have become selling agents. Consumers themselves now have the agency to provide a service with reasonable price margins for the low-value consumer.

Created in 2020, the Airbnb Community Fund is part of our commitment to serve our stakeholders and give back in the places our Hosts call home. The Community Fund will distribute $100 million USD by the end of 2030 to strengthen communities around the world.

How Airbnb expanded globally? ›

Building a Global Brand

This focus on community has been a major key to their success. Cultivating a Global Family: Airbnb built a global community by creating a user-centric platform. Travelers connect directly with hosts, fostering a sense of shared experience and cultural exchange.

From a water usage standpoint, Airbnb also notes that home-share properties listed on Airbnb.com were found to use 12% less water than traditional hotel accommodations per guest night in North America and 48% in Europe, and the waste avoidance achieved in North America compared to traditional hotel accommodations per ...