I wonder if it has even once occurred to the hotel industry to fight Airbnb by improving their services instead of through legislation?
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There might also be room for innovation. What could hotels begin to offer that Airbnb hosts couldn't?

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That is a very interesting question that almost certainly has answers. And yet notice how novel it sounds...
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If I could find hotel rooms with two bedrooms and a kitchen, I probably wouldn't bother with Airbnb again. Hotels don't work for kids.
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Very good point. And yet how many in the hotel business grasp even this basic point? Few, or they'd have such rooms already.
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As a user, I'd say it is price at the low end and cool places/locations at the high end. Dunno how I'd compete as a hotel.
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By contrast, had taxis done an app early on, they probably could have beaten or contained Uber/Lyft.
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If you want a more accurate first order approximation, both take a fraction of unused inventory and sell it below dedicated asset prices.
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Both made their providers a bunch of money too. And I don't think think the VCs are going to come out badly either.
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So hotels/taxi co's lose, consumers, VCs, the companies, and maybe providers win. Sound like a pretty great trade.
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In many cases, it's probably price. In some markets, hotels just can't compete on that.
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Better yet host conversations with customers who express the likelihood of using airbnb. There's some pain in there waiting to be addressed.
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