Airbnb, the New Kids on the Block of the Hotel Industry

Much like the taxi industry, the face of the hotel industry is changing. The new kids on the block are disrupting the unchanged scene that is the hospitality business.

The coined term “Uber movement” is usually applied to any on-demand or technology based start-ups trying to reshape our economy. However, Airbnb has a deeper and richer history than that of its counter-partners in the on-demand industry. Like most businesses, it starts with the simplest economic theory: demand and supply. If there is demand, suppliers should provide the wanted quantity of goods. However, founders Brian Chesky and Joe Gebbia, then located in San Francisco, realized that visitors to the city were unable to book hotels in the saturated market. In other words, the suppliers could not meet the demands of consumers. To create more number of accommodations available, Chesky and Gebbia created a substitute good that could compete with hotels, and residential housing. Essentially, anyone could become the supplier, renting out (short-term) their empty room or properties to travelers and visitors.

How will Airbnb play out in the Toronto scene for the Pan Am Games held this month? Would tourist want to escape the congested hotels and opt for Airbnb housing, or would visitors want to bask in the full Toronto city life while they’re in town and stay in hotels? Only time will tell.

On that note, buy a ticket to one of many events at the Pan Am Games! And if you are a visitor from out of town or country, why don’t you try staying at one of Airbnb’s accommodations? Also, if you need to get your laundry or dry cleaning done, place an order with Simply Laundry!