How The Hotel Industry Is Working Behind The Scenes To Take Down Airbnb

Back when Airbnb was launched more than eight years ago it was unclear how much of a disruption it would cause the hotel industry. But new documents from a major hotel trade group reveal the industry has been lobbying politicians and funding anti-Airbnb studies in an attempt to limit the home-sharing company's growth.

The American Hotel and Lodging Association, a group with members including Marriott International and Hilton Worldwide, have taken credit for many of the major setbacks Airbnb has encountered, calling the Federal Trade Commission’s investigation into Airbnb and the former New York bill that would fine Airbnb hosts for breaking housing rules "notable accomplishments," the New York Times reports. The plan to take out Airbnb was laid out in two separate documents presented to the AHLA board, according to documents the New York Times has since obtained.

In response to AHLA's efforts, Airbnb released a blog post Monday morning titled "The Hotel Industry Agenda: Punish the Middle Class." As the title suggests, Airbnb argues the hotel industry's multimillion-dollar efforts to quash Airbnb's growth is ultimately hurting middle-class Americans who use the site for supplemental income.

Many hoteliers count Airbnb listings as new supply in their markets, which explains the concern. Unlike other sectors, hotels are not guaranteed a steady inflow of cash from long-term leases since their tenants come and go on a day-to-day basis. As such, any new hotel supply is considered very disruptive.

Airbnb has over 3 million listings in over 191 countries and has accommodated more than 150 million travelers. Worse than the sheer numbers, a Goldman Sachs report concluded that once travelers try Airbnb they are less likely to go back to hotels in the future.