The Road Explorer - Fall 2017 - 17

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seeking and are comfortable with a more
authentic, local immersion.

The Measure

Depending on who you query, there
are a lot of conflicting theories about
the impact of the entry of Airbnb into
the accommodation mix, and there are
arguments that can be made for both

sides when exploring whether or not
Airbnb is truly a threat to the hospitality
industry. But there really is no disputing
that with approximately three million
room listings in 34,000 cities across
the globe, Airbnb has, at minimum,
disrupted the traditional hotel model
and is successfully offering a new and
well-received option for a significant
number of consumers. Airbnb claims
that, since its inception, 150 million
travellers have stayed in Airbnb offerings
in almost 200 countries.
Airbnb's presence has certainly been
felt by the hotel industry across Canada.
Between early 2015 and early 2016, the
number of Airbnb listings in Vancouver,
Calgary, Toronto and Ottawa grew to
nearly 26,000 - a growth of 140 percent
in one year. Recent data reveals that
Airbnb accounts for about 5 percent of
the total accommodation demand in
Toronto and Vancouver, while Ottawa is
sitting at about 2.5 percent and Calgary
is less than 2 percent.  These figures
suggest that when combined, Airbnb
represents an average of 4.3 percent of
the total of accommodations booked by
travellers to these Canadian cities.
The story in the U.S. is similar.
According to Goldman Sachs, in 2016
Airbnb also provided roughly 5 percent of
the U.S. lodging room total last year, up
from 3.6 percent in 2015. Given that only
five U.S. hotel management companies
book in excess of five percent annually,
that's a significant benchmark. A little
more than half of all the bookings are
in major centres, including New York,
Los Angeles, San Francisco, Miami and
Boston. It's fair to say that competition
from Airbnb is being seen across all
brands and price points, and it's definitely
being regarded as a force to be reckoned
with by all hotel companies.

The Impact

Ascertaining how the Airbnb
phenomenon is impacting the
accommodation market requires looking
beyond the numbers and, at least
presently, is very much a matter of which
side you ask. Airbnb maintains that in
spite of the increasing volume of people
renting their homes/spaces to travellers,
the traditional hotel sector continues to

thrive and earn robust profits, so there is
plenty of room in the market for Airbnb's
non-traditional offering.
Facing pushback from the hotel
industry, as well as some of the
neighbourhoods housing Airbnb units,
the company claims that the service's
affordability allows more people to
travel, which should be construed as
a good thing for the tourism industry
overall. Responding to the hotel
industry's perceived criticism of Airbnb's
business model, the company has
posited that the industry is misleading
consumers because of a desire to
continue to price-gouge its guests.
Further, Airbnb claims the industry is
motivated by a concern that it is losing
market share among millennials to the
home-sharing service. As millennials and
Generation Z have responded positively
to using home sharing, they account for
approximately 60 percent of all guests
who have ever booked on Airbnb, and the
number of millennials who have booked
on Airbnb grew more than 120 percent
in the past year. Airbnb makes the claim
that given that millennials and Gen Z are
projected to comprise 75 percent of the
key demographic of consumers - 18- to
49-year-olds - by 2025, hotels have
responded to the changing competitive
landscape negatively as a way of
protecting profits.
Not surprisingly, the hotel
industry sees things very differently.
The American Hotel and Lodging
Association has stated that its objections
to the platform are not solely rooted in
Airbnb's financial impact on the bottom
line. They cite their studies, along with
data-scraping offered by third-party
companies, that reveal Airbnb has a
significant number of individuals who,
rather than homesharing, are actually
running de facto hotels out of residential
buildings as indicated by the large
percentage of owners offering multiple
or whole house listings.
The hotel industry notes that many
of these units, as with the 'mom and
pop' listings, are being offered to
consumers without being subject to
the same oversight and safety and
security regulations (anti-discrimination
laws, local tax collection and safety

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Table of Contents for the Digital Edition of The Road Explorer - Fall 2017

Industry Voice
Issues Update
Regulatory Update
Industry Controls Its Response to U.S. Travel Ban
Will Competition From Airbnb Disrupt the Travel Industry? It Depends on Who You Ask
OMCA’s 2017 Golf Tournament
Badder Bus Operations
Canadian Museum of Immigration at Pier 21
Travel Highlights Marketplace
Classifieds
Index of Advertisers
The Road Explorer - Fall 2017 - Intro
The Road Explorer - Fall 2017 - bellyband1
The Road Explorer - Fall 2017 - bellyband2
The Road Explorer - Fall 2017 - cover1
The Road Explorer - Fall 2017 - cover2
The Road Explorer - Fall 2017 - 3
The Road Explorer - Fall 2017 - 4
The Road Explorer - Fall 2017 - 5
The Road Explorer - Fall 2017 - 6
The Road Explorer - Fall 2017 - Industry Voice
The Road Explorer - Fall 2017 - Issues Update
The Road Explorer - Fall 2017 - 9
The Road Explorer - Fall 2017 - 10
The Road Explorer - Fall 2017 - 11
The Road Explorer - Fall 2017 - 12
The Road Explorer - Fall 2017 - Regulatory Update
The Road Explorer - Fall 2017 - Industry Controls Its Response to U.S. Travel Ban
The Road Explorer - Fall 2017 - 15
The Road Explorer - Fall 2017 - Will Competition From Airbnb Disrupt the Travel Industry? It Depends on Who You Ask
The Road Explorer - Fall 2017 - 17
The Road Explorer - Fall 2017 - 18
The Road Explorer - Fall 2017 - 19
The Road Explorer - Fall 2017 - 20
The Road Explorer - Fall 2017 - 21
The Road Explorer - Fall 2017 - OMCA’s 2017 Golf Tournament
The Road Explorer - Fall 2017 - 23
The Road Explorer - Fall 2017 - 24
The Road Explorer - Fall 2017 - Badder Bus Operations
The Road Explorer - Fall 2017 - 26
The Road Explorer - Fall 2017 - 27
The Road Explorer - Fall 2017 - 28
The Road Explorer - Fall 2017 - 29
The Road Explorer - Fall 2017 - 30
The Road Explorer - Fall 2017 - Canadian Museum of Immigration at Pier 21
The Road Explorer - Fall 2017 - 32
The Road Explorer - Fall 2017 - Travel Highlights Marketplace
The Road Explorer - Fall 2017 - 34
The Road Explorer - Fall 2017 - Classifieds
The Road Explorer - Fall 2017 - 36
The Road Explorer - Fall 2017 - Index of Advertisers
The Road Explorer - Fall 2017 - 38
The Road Explorer - Fall 2017 - cover3
The Road Explorer - Fall 2017 - cover4
The Road Explorer - Fall 2017 - outsert1
The Road Explorer - Fall 2017 - outsert2
The Road Explorer - Fall 2017 - outsert3
The Road Explorer - Fall 2017 - outsert4
The Road Explorer - Fall 2017 - outsert5
The Road Explorer - Fall 2017 - outsert6
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