Study: No Evidence Airbnb is Hurting NYC Hoteliers
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Airbnb may be expanding at an impressive rate, but there's no evidence that the short-term rental service is encroaching on Manhattan hoteliers' business and cutting into revenue, according to a recent study from hospitality research firm STR.
STR's study, which is based on two years' worth (December 2013 through November 2015) of supply, demand and revenue data provided by Airbnb, found that more than 60 percent of the San Francisco-based company's Manhattan rental supply fell under the midscale or economy class, meaning that the majority of Airbnb listings in the New York borough are competing against just 13 percent of the local hotel market.
What's more, researchers discovered that a majority (58 percent) of Airbnb guests stay in a rental for at least seven days. By comparison, only four percent of Manhattan's hotel rooms are considered extended stay accommodations.
Researchers also found that strong demand nights for Airbnb rentals resulted in no negative effects on local hotel occupancy or average daily rates and that there is a significant amount of demand in Manhattan that remains unaccommodated based on occupancy levels.
Therefore, researchers determined that there's no evidence that every guest who books an Airbnb is a guest lost by the hotel industry.
In concluding their study, STR researchers said "there appears to be no direct, statistical evidence suggesting Airbnb units and hotel rooms compete consistently for the same traveler."
READ MORE: Airbnb vs. Hotel - Which is Right For You?
Researchers wouldn't rule out the possibility of overlap, but noted Manhattan's extended-stay and economy hotels were the most likely to be impacted given the aforementioned data.
Interestingly, the STR report, which was the first to have access to data directly from Airbnb, comes one week after a study from CBRE Hotels' Americas Research determined New York's hotel market to be under the greatest threat from Airbnb.
"Continued analysis to understand the key performance indicators of the hotel industry and other paid accommodations will be crucial to further understand the operating environment," STR president and COO Amanda Hite said in a statement.
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