A new report from Morgan Stanley Research shows that Airbnb’s growth is slowing in the US, UK, France and Germany largely in the face of increased competition from OTAs Booking and Expedia. The percentage of travellers using Airbnb increased by only 2% in the last year, compared with 3% the year before and 8% in 2016.
The primary reason given was that Airbnb awareness has peaked at 86%, while safety and privacy are still concerns, and competition from the OTAs is an increasing challenge, with 59% of respondents using OTAs to book travel.
Airbnb has the aim of reaching a billion people annually using the platform by 2028 and growing a community. 47% of respondents replaced a hotel stay with an Airbnb in 2018, while researchers anticipate that markets outside the US and Europe will make up almost half of all of Airbnb’s global room nights by 2020.
The line between the OTAs and homesharing is blurring, as Airbnb starts to list hotels, while the number of private accommodations on Booking.com now represents around 80% of its inventory, growing 50%/year. Nearly 80%of US respondents said that they would book an Airbnb Plus home over the next year.