How big of a threat to the hospitality industry is Airbnb’s upcoming IPO?
— 10 experts shared their view
Airbnb is expected to complete its much anticipated IPO before the end of 2020 and Wall Street analysts are understandably excited, while hospitality industry experts worry that access to cheaper capital would allow Airbnb to increase its share of the current ultra-weak travel demand at the expense of hotels. This year Airbnb's US adult user base is expected to fall 60.0% to 17.0 million, the first time of negative user growth (eMarketer). No wonder, the company's valuation plummeted by 58% to $18 billion in a desperate coronavirus-driven fundraising in April 2020 from its previous high of $31 billion. Due to increased competition, its market share in the U.S. is expected to decrease to under 70% by 2022 from the current level of nearly 73% (eMarketer). The question is, how big of a threat to the hospitality industry, if at all, is Airbnb's upcoming IPO?
All the IPO will do will pour money into a business that already had billions of money chucked at them. The bigger question will be around the business model in the post-COVID era and how likely guests are using alternative accommodation instead of hotels. Early indications showed that OTA's who own vacation rental sites saw grat increase on those sites whilst all others declined.
In regards to share numbers: I wouldn't put too much emphasis on an outdated concept of reporting. Humans are tribal and therefore we shall see fluctuations going forward with platforms being favored based on the trip occasion but not as a "loyalty" over and over. Used when the best fit.