Despite what many have dismissed as a mere blip on the radar, Airbnb is a force to be reckoned with, and we have yet to see just how widely it will impact the lodging industry. Airbnb's remarkable success and a $25 billion valuation has come at a cost to competitors. It claimed almost $1 billion in disruption revenue last year by some estimates and revenues jumped 89 percent in July 2016 compared to the same period last year, cites Crowne Plaza Stamford according to new data from ecommerce analytics firm Slice Intelligence. At the current rate of expansion, Airbnb, which boasts 550,000 listings in 34,000 cities, may soon earn the title, "World's largest hotel chain". Airbnb is now expanding from its base of millennials and budget stays into segments hoteliers perhaps hold most dear: business and luxury travelers.

Here's how the hotel industry is fighting back:

1. Boutique hotels: Boutique labels are an effective way to acquire Airbnb users and can appeal in the same way that an Airbnb apartment can. Boutique properties in residential neighborhoods often seek to provide a more unique, localized experience where employees can interact more personably with guests, but still give travelers the sense of security and trust they crave. Intimate boutiques are therefore more adventurous than large hotel brands, but more secure than Airbnb. It may help shift the perception of hotels from a place of comfort, consistency and amenities to that of something that is a bit more adventurous and exciting while still being trustworthy and reliable.

2. Extended stay hotels with residence-like accommodations: These hotels, typically in a relatively inexpensive suburban area, have long attracted business travelers hoping to save money on a long term trip. But that's changing, since part of Airbnb's appeal is that it offers affordable long-term housing options in big cities all while providing a sense of 'home'. Now, extended stay hotels are opening in hip, urban locations with more amenities, like chic designer décor and in-house gyms with personal trainers, etc.—accommodations meant to replicate residences rather than hotel suites.

3. Combining hotel hospitality and luxury condo comfort: Other brands are catering to the long term traveler by combining the hospitality you would receive at a hotel with the comfort you would experience at a luxury condo. In these properties, you would expect to find services that you would find in an apartment building such as a doorman and maintenance services, as well as more hotel-oriented services such as in-suite dining and valet laundering.

4. Helping guests immerse in local culture: Some brands offering exclusive Central Park penthouses, have partnered with places such as New York City's Museum of Modern Art, and Acker Merrall & Condit wine store in order to help guests immerse themselves in the culture of their temporary home.

5. Flexible home/office hotels: Properties that offer a flexible home/office hybrid where guests can live, work, and relax with other guests are another new venture being toyed with. These hotels would offer a living room, working space, kitchen / dining area, game room, meeting spaces, and a 24-hour store. In this model, most of the rooms would be loft spaces where the bed is not the focal point of the room.

6. Approachable services' at a reasonable price: New hotel chains created especially for the millennial traveler combine contemporary design and "approachable service" at a reasonable price — an obvious appeal to price-sensitive Millennials who stay with Airbnb.

7. Personalization: While some brands assume that the latest technological advances will endear them to millennials, studies have found that beyond WiFi, digital was not a top concern. Instead, training employees to naturally offer personal preferences could create the environment Airbnb clients prefer.

8. Pushing for regulation: Hotels are also pushing the federal government for regulation. AH&LA made a presentation at a Federal Trade Commission workshop last June on the sharing economy in which it singled out Airbnb for having obligations that were not being met. The hotel industry says these actions are not part of a concerted effort to kill Airbnb, rather they are part of an industry-wide initiative to maintain a level and regulated playing field. Why should individuals checking into a hotel property pay local and state taxes, while those checking in with Airbnb don't? What about local tourism levies, health, insurance, fire and safety code issues? Hotels and trader organizations have also lobbied for laws that would restrict many Airbnb homes and apartments from being listed on the service. Allowing a platform like Airbnb to enable the illegal operators who are gaming the system, puts law-abiding hotels at a disadvantage.

It's too soon to tell if the hotel industry's efforts have been effective. Hotels are earning record profits, and Airbnb had 40 million guests last year, double the number from 2014. To the average consumer, that sure looks like a "win-win."