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Got a place to rent? Expedia and Airbnb want to add yours to their list

Home-sharing and extended stay hotels are doing well even during the pandemic. Even big hotel chains, such as Marriott, Hyatt, and Wyndham, also got into the home-sharing market. 

As the travel and hospitality industry is ready for a long-waited recovery beginning in 2021, Expedia, the parent company of Vrbo, is fighting with Airbnb for supply. Expedia's strategy is to deploy a team to poach Airbnb's superhosts.  

Now that every key player in the home-sharing market is fighting for high-quality home-sharing facilities, what do you expect from the competition among hotels, OTAs, and Airbnb? Also, will such a fight for supply affect the real estate market as more investors might purchase homes for short-term residential rentals?


  1. I think that it's been becoming more popular to rent an Airbnb than to rent a hotel room. This in part has to do with prices, with Airbnbs being seen as getting more for less along with privacy that isn't available in hotel rooms. So it's to no surprise that there is a fight for "high-quality home-sharing facilities" among Airbnb, hotels, and OTAs. Especially now during the pandemic, people are less inclined and discouraged from staying in places that has the potential to have high foot traffic. Private homes is the perfect alternative to that.

    I also see this increase of competition to have an effect on the real-estate market. People, along with the hotel industry who want to get in on this as way to make money will continue to look for properties that have the potential to be great for home-sharing. However, I can also see this creating a problem for homeowners who will be in the market to buy a personal home. It could also create issues in pricing, especially if its hotel groups who are fighting for home-sharing facilities.

    - Brisa Flores, HRT 3020 Section 2

  2. I personally think that the home-sharing market will face regulatory issues in the future. If you talk to neighbors who live in popular-tourist regions, they all complain about Airbnb and other home-sharing platforms. I can't imagine how much more complaint will pile up if other OTA's and hotels join the market as well. Big cities such as Barcelona, Paris, and Santa Monica have already created strict rules for home-sharing platforms because they believed that these platforms were displacing the city's natives and locals.

    However, in short-term, the real estate market will definitely become bigger because the demand exceeds the current amount of supply. Personally, I am very worried about the huge consequences the majority of the population will face due to this market. Homes are turning more into an investment for passive income, rather than an actual place for people to live in.

    - Michael Jeong, HRT 4990 Section 1

  3. In my opinion, I think that recently more people are choosing to stay in AirBnbs rather than staying in hotel rooms. When people need to find cheaper rooms to stay in, AirBnb is the better option compared to hotels.

    I think that with this competition, more people will be on the lookout for purchasing homes and that could also affect real-estate and it's market. I don't think it's surprising that big hotel chains are wanting in on the home-sharing market. They are already making money during the pandemic and they want to expand and make more.

    -Jamie Yi, HRT 3020 Section 2

  4. Vrbo has started to really provide major competition in the home sharing space. It is important for OTAS to stay on top of trends to stay relevant, so it would make sense that they are trying to find their space when it comes to home sharing. I feel the most important part of home sharing is the website and app design. What Airbnb has done so well is to highlight some of the rental that really give an identity to the city that they are in. If OTAS can find a similar way to really make their apps entertaining they can have a better chance competing with other travel sites.
    When it comes to the real estate market, I definitely can imagine that the competition would drive up prices of homes if these home sharing companies provide incentives. There will probably be a point where it would be lucrative to put in the effort to buy and fix up a home if companies start to provide incentives.

    - Jessica Elsea HRT 3020 section 2

  5. Stacey Lee HRT 3020 Section 01April 17, 2021 at 3:59 PM

    Since the pandemic, there were a huge negative impact on hotel industry. I personally choose Airbnb rather than hotels because it is easier and feel comfortable. Hotel hosts and agents are very helpful but I feel more comfortable spending time at Airbnb. For example, I can cook like I am home. Even though some hotels provide the kitchen, Airbnb has more kitchen tools than hotels have. I am sure that Airbnb is fighting for “high-quality home-sharing facilities” as more people demand the safe-home traveling residential rentals. Because of the safe reason, people would choose Airbnb over hotels because Airbnb only allows certain amount of the customers who are staying. I am expecting the price will increase due to demand of high-quality home-sharing facilities.

  6. Timothy Lam (HRT 3020.01)April 17, 2021 at 10:16 PM

    Amidst the pandemic, it feels as though that there has been a substantial growth in the home-sharing market during this past year. Due to the fact that most people have been working from home or remotely, people have been resorting to renting out home-haring facilities as a way to get away from society. Even some of the Collins faculty I have spoken to have also rented out numerous Airbnbs this past year to cope with boredom. What's more fascinating is that Airbnb recently got listed on the NASDAQ, which will substantially put them in a much higher position than ever before. Even with such competition in the market right now, as well as the recent growth in the real estate market, I think that long-term wise this will affect the house market greatly because many property owners are now purchasing homes to use as a home sharing facility. Not to mention, there are many people that are moving in and out of states: whether they are moving from California to Texas, or from the crowded like New York to somewhere more suburban, there is a huge shift in the market. Not only will it be harder for people to purchase homes in the future, it will be more expensive.

  7. Airbnb and other home-sharing companies having been on the rise for the past decade. However, during the pandemic, home-share platforms like these have been seeing an even greater increase. I think part of this is due to the "safe" feeling of being in a home and being more distanced from other travelers. Also people are very interested in the the amenities a home provides as opposed to a hotel.

    A big motivation for picking a place to stay on vacation during the pandemic is safety. Hotels are much more dense. People traveling stay next to others that they do no know. When renting an Airbnb, people often stay with their party and are in a house that is in a normal neighborhood. This provides more isolation and distance during the pandemic.

    I think one issue facing home-share platforms is the regulatory issues and laws. Currently, a majority of Airbnb rentals break the local laws of home-sharing. Although this is often overlooked by the law enforcement and government, this is an unprecedented issue for such a large industry. I think in the future the regulations and laws surrounding this should be carefully looked at to prevent liability.

    - Paul Thvedt HRT 3020.02

  8. Hotels, OTAs, and Airbnb will continue to have increasing competition as time goes on, especially after the pandemic. Many believe that once the pandemic has ended travel will skyrocket. As the potential customer pool increases, so does the competition. I think it's going to be important for each hotel and Airbnb to set themselves apart. It's now not enough to say that the lodging facility is clean and in a nice area. There needs to be something extra to convince guests to pick their place. Increased health precautions are now going to be a bigger issue and for many this topic is the reason Airbnb seems like a better option. Hotels have many people staying there at once and if they want to keep a steady stream of guests, new policies for health and safety need to be in place.

    As time goes on this competition will greatly affect the real estate market for short term rentals. Like I said earlier, Airbnb is seen as being more health conscious and this can be an issue for bigger hotels. The pandemic mentality has changed how we see things, and this gives rental homes a bigger audience, bringing in more investors. The market for small rental homes will continue to increase as long as the demand is there.

    - Gillian Sterns, HRT 3020 Section 1

  9. Eliziah Sangalang HRT3020.01
    The pandemic has definitely shifted the preference of guests in regards to accommodation. For a long time, hotels were the primary choice for lodging as it offered all the amenities, convenience and all the traveler’s basic necessities—wether it be at a motel or a luxury hotel. As Airbnbs were introduced, the dynamics of lodging changed. Airbnbs do not only have a relatively lower price point than hotels, they also offer all the same amenities and convenience which made them a key competitor in the industry. Airbnbs are more convenient wherein a broad spectrum of lodging are available at the convenience of a guest’s budget. Airbnbs can range from tents, to airstreams, to private rooms, to whole homes, and to large mansions. There are also a multitude of very innovative Airbnbs as hosts have come up with unique stays that hotels cannot offer. I personally prefer Airbnbs as a home away from home as it is more cost effective and aesthetically pleasing. There will definitely be a drastic effect that may either be negative or positive, on the real-estate market as the home-sharing market continues to grow.

  10. The overall competition between Airbnb, OTA’s and hotels will be good for consumers because each company may try to undercut the other in order to gain a customer. Although, I believe that Airbnb will win out given their business model being more catered to the current travel restrictions and health concerns. That being said, if more real estate marketers begin to buy homes, the prices may begin to increase. Most investors like to aim for short term flips which is not always possible to make in the hospitality industry. There must be long term plans in place in order to keep prices stable and quality assured. My belief is that investors buying up homes would be detrimental in offering competitive prices.
    HRT 3020 Section 01 (1pm)

  11. I believe it is somewhat generational the idea to rent out someones home through AirBnB. It has become more popular throughout the years because it is seen as the "hip" new way to take a vacation, all the while saving some cash. With the homey feel you receive through an AirBnB even during this pandemic these home-sharing companies continue to rise.

    The real estate market on the other hand I believe will also continue to grow for more short term residential rentals. This is especially the case with the new generations looking to rent in more sought out areas rather than buy.
    HRT 3020 Section# 1


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