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?

Peter O’Connor
Peter O’Connor
Professor of Strategy at University of South Australia Business School
Simone Puorto
Simone Puorto
Founder | CEO | Futurist
Max Starkov
Max Starkov
Adjunct Professor NYU Tisch Center for Hospitality and Hospitality & Online Travel Tech Consultant
Erik Muñoz
Erik Muñoz
Chief Commercial Officer (CCO) at Lybra.tech
Larry Mogelonsky
Larry Mogelonsky
Managing Director Hotel Mogel Consulting Limited

The Airbnb IPO is interesting but has nothing to do with the success (or failure) of their business. Airbnb is the game-changer in our industry. Their value reduction as stated above is representative and consistent with all publicly traded hotel companies. I do not necessarily agree that their market share reduction has anything to do with competition. Rather, this is probably a function of reduced inventory due to inventory restrictions levied by some municipalities and rental unit conversion to long term occupants. This is just a short term blip. Rest assured this will be a very successful IPO and Airbnb is not going away! Airbnb is the de facto accommodation market leader.

Charlie  Osmond
Charlie Osmond
Co-Founder & Chief Tease at Triptease

Welcome to 2020. Airbnb is part of the hospitality industry already. Get over it. 

I hope IPO cash might help them ease Expedia and Booking's oligopolistic power. I hope IPO cash might have them boost a faster global return to travel. I suspect it's rather marginal for hotels on both counts. 

Linchi Kwok
Linchi Kwok
Associate Professor at The Collins College of Hospitality Management
Mark Fancourt
Mark Fancourt
Co-Founder at TRAVHOTECH
Dori Stein
Dori Stein
Chief Executive Officer, Fornova