Airbnb valued 20 billion USD, swallowed hotel market share

AIRBNB200 billion's valuation is second only to Hilton and Marriott, so high valuations are due to a portion of its market share flowing from the hotel to Airbnb.

Luo

In his 2015 letter to shareholders, Mr. Buffett deliberately thanked Airbnb.

"To solve this problem (inadequate hotel rooms), Airbnb has made a special effort to give us a list of hotel rooms that attendees can choose from during the meeting," Mr. Buffett wrote. Airbnb's service has given shareholders great help in the hope of a brief stay in Omaha. ”

Airbnb, praised by Mr. Buffett in his letter, was founded in August 2008 in San Francisco, a short-term housing rental website.

Airbnb is about to complete a round of $1 billion trillion in financing, doubling its value to $20 billion over the previous rounds, according to people familiar with the report. Airbnb also became a shared economic services company after Uber. Compared with the traditional hotel, Airbnb's valuation ranked third, after Hilton's $27.8 billion trillion and Marriott's $23 billion trillion.

Airbnb why is the valuation so high? Because part of the market share is flowing from the hotel to Airbnb.

A new study by Boston University shows that every 10% increase in the availability of Airbnb will lead to a 0.35% drop in hotel room income in the same area. Hotel revenues have fallen by 13% in the Texas State Austin region, the Airbnb of the country's highest availability.

U.S. Travel news website Skift article analysis, January New York average occupancy rate fell 4.7%, down to 68%. 2009-2014, New York's hotel room supply only increased by 4% a year. But Airbnb's listings have increased by 197%, and if combined, the market's housing supply has increased by 12%. Although the occupancy rate of the hotel has declined, the number of guests in the accommodation has been increasing over the past year.

According to a January report by Barclays Bank, Airbnb's reserve is now about 37 million nights a year, with a promising growth trend, and Barclays expects Airbnb to double in size over the next 12 months, It will likely grow to 129 million nights in the next two years, which means Airbnb will overtake intercontinental hotels.

Due to poor performance on business trips, Barclays reported that Airbnb is not yet a threat to the hotel, but Vicki stem, a European leisure travel analyst at Barclays Bank, stressed in the report that "the threat does not mean that the hotel has not yet been compromised", according to Airbnb's current trends.

However, despite the rapid growth of Airbnb, many problems remain to be solved. In the area of fire fighting and property safety, Airbnb has no management plan. In 2013, Airbnb received 1700 reports of property losses, but only 40% of complainants were compensated from Airbnb. In addition, there is a lot of controversy over the regulation of Airbnb. In some areas, the short-term leasing of dwellings is in a legal and tax grey area. The New York Hotel law stipulates that a house owner who is not residing in a house shall have no less than 30 days ' rent.

Last October, Eric Schneiderman, New York State's attorney general, released a report saying that 72% of Airbnb houses in New York violated hotel and property laws and that homeowners owed the country 33 million of dollars in taxes.

"This industry needs to be regulated and regulated in the right way," Sebastian de Kleer, co-founder of the Los Angeles Short-term Leasing consortium, told the Los Angeles Times, "This is a very new issue for many people." ”

But the INC Magazine still Airbnb as "2014 annual Company". The INC "That Portland, San Francisco and Oregon State, have agreed to legalize most of the Airbnb accommodation list in exchange for taxes and other concessions," he said. While regulators, hotels and neighbors may hate Airbnb, it has revolutionized an industry that is hard to stop.

Similar to the business model of "Uber", a taxi software called "shared economy", Airbnb is an online leasing market, dubbed "the housing market ebay" by Forbes magazine, which connects homeowners with housing resources and customers with predetermined needs. Homeowners with housing resources can publish their listings on the Airbnb, and customers can choose a cheaper place to live on their own needs than hotels. The website has also created an evaluation system to facilitate the establishment of a reputation market and strengthen links with users.

At present, Airbnb has more than 800,000 rental listings, covering more than 190 countries, more than 34,000 cities, the current total number of tenants has reached more than 25 million.