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Rise of short-term rentals: Will hotels suffer?


Friday, November 11, 2016

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Airbnb in Pacific Beach

Kelly Cunningham, National University System

NO: Short-term rentals have some modest substitution effect on hotel rooms, but the market is small compared to the much larger and entrenched hotel industry. Short-term rentals have been in San Diego for decades. What changed is websites, such as VRBO (vacation rentals by owner) and Airbnb, conveniently allow individuals to use their primary residence to host guests. Arguably the market niche of travelers staying in short-term rentals expands the visitor market rather than necessarily takes away from hotel users.