Airbnb Doesn’t Threaten Hotel Business, Morgan Stanley Says

Despite competition from Airbnb, business is expected to boom for the hotel industry in the coming years, according to a new report by Morgan Stanley. The report projected several years of growth for hotel occupancy rates in the United States and Europe.

One major factor is that Airbnb is not a good option for business travelers, who make up hotels’ most loyal, high-spending, and frequent customers. Airbnb doesn’t offer business travelers the same incentives, such as loyalty programs.

In the end, the report says, just 12% of those surveyed have ever used the site, and among those who haven’t, 59% had never even heard of it.