According to a filing with the United States Securities and Exchange Commission (SEC), the company Airbnb has confirmed that it raised a whopping $1.5 billion in funding.
Airbnb is a game changer in the world of hotel-like accommodations and “is a trusted community marketplace for people to list, discover, and book unique accommodations around the world – online or from a mobile phone or tablet. Whether an apartment for a night, a castle for a week, or a villa for a month, Airbnb connects people to unique travel experiences, at any price point, in more than 34,000 cities and 190 countries.”
Similar to the taxi drivers who loathe Uber and the restauranteurs who despise “shared economy dining,” Airbnb has raised the ire of hoteliers everywhere who are losing out big time due to the company’s success.
In describing the plight of France’s hoteliers (and in trying to stop the same thing from happening to French restaurants), a representative from the primary Paris restaurateurs’ union pleaded to the French government that, “In the space of three years Airbnb has tripled its presence in Paris – to the point that there are now 50,000 flats advertised on its website.” He points out that small and medium-sized hotels have been hit very hard by the practice and have had to dramatically reduce their prices.
The Wall Street Journal reported in July that Airbnb’s funding round will value the company at about $24 billion. Amazingly, that means that in the very near future, it will be worth more than Marriott – an actual hotel chain!
According to experts, Airbnb is set to make $900 million in revenue for 2015. And this figure is expected to increase to $10 billion by 2020.
As reported by Reuters, Airbnb is expected to double its reservations this year and over 80 million nights are already booked.’
Just as Uber faces regulatory challenges everywhere it goes, it is likely that Airbnb will begin to run into regulatory problems in Europe and other countries.