Airbnb has been giving brands like Hilton and Marriott a run for their money for a few years, but new data shows the company is taking a big chunk out of the hotel industries’ market share.
According to a report by Second Measure, U.S. customers spent more money on Airbnb than Hilton hotels and is gaining on Marriott. Last year, the company held 19 percent of hotel market share and the number is expected to climb as Airbnb nears its IPO.
Convenience has long been on Airbnb’s side. The $31 billion company prides itself on having locations for customers in nearly every corner of the world. In November, the company announced an update that lets groups split payments for trips.
Subtle improvements have had huge impacts on Airbnb’s sales. According to the report, the company’s sales have tripled in the past three years. Airbnb’s retention numbers also shine a light on some of its success. In 2017, 40 percent of Airbnb customers returned within a year. Marriott and Hilton’s retention rates have steadily fallen over that last six years.
Coastal cities have historically been a huge source of sales for Airbnb, but time has shifted the trend to cities in the central United States. Wyoming, the Dakotas, and Idaho have seen its Airbnb numbers quadruple since 2015.
Although Airbnb’s popularity has steadily grown, the company has hit a few roadblocks with regulations in New York City and taxes in San Francisco. The company has expanded its offerings by acquiring HotelTonight, a platform that lets users book last-minute rooms.
Airbnb has also announced initiatives that will target the housing market. The company is set to start building and selling affordable housing this year, which could add another boost in its sales and revenue.