The arrival of Airbnb and its home-sharing phenomenon in 2008 shook up the global hotel industry like never before.
Whereas at one time a hotel, hostel, inn or bed & breakfast was the only game in town a new player had emerged that would go on to become a dominant participant in the hospitality landscape and certainly challenge the status quo.
Airbnb wasn’t the only threat to the hotel industry in recent years
The global COVID pandemic of 2020 had a go at killing all the hotels around the world and couldn’t completely manage it, although there were many casualties.
The hotel industry came back even stronger as travel bounced back in full force post-pandemic to record highs in 2023 and 2024.
It seems that the hotel industry is as resilient as ever!
Let’s dig into a brief history of hotels and how they fit into 21st-century travel today compared to the modern-day Airbnb home-share experience.
Hotels and inns in their many forms have been an integral part of human society for thousands of years, evolving from simple shelters to current-day luxury havens of hospitality that cater to tourists, entrepreneurs and today’s digital nomads alike.
Hotels provide a unique blend of professional service, reliability, and premium locations that are generally more difficult to get with an Airbnb.
Furthermore, over-tourism and even post-pandemic “revenge tourism” has caused a significant backlash against short-term rental platforms like Airbnb with some cities like Barcelona banning them altogether by 2028.
Lisbon in Portugal stopped granting new Airbnb or Alojamento Local (AL) licences in 2023 to avoid crucial long-term rental stock being lost to Airbnb-style short-term rentals.
New York City introduced a ban on short-term Airbnb rentals of less than 30 days unless the host was staying with the guests.
These are just a few examples of how things have changed since the arrival of Airbnb way back in 2008.
Clearly, what started as a novel alternative to expensive hotel stays has reached a point where local municipalities are banning or significantly limiting this type of short-term accommodation.
The loss of long-term rental properties has put a strain on affordable accommodation options for locals or worse has driven prices up as has happened in so many cities like Barcelona and Lisbon.
As the global backlash against homeshares and Airbnb grows
hotels could find themselves back on centre stage once again.
A brief history of hotels: from simple inns to modern-day luxury
The history of hotels traces back to ancient civilisations, where travellers sought rest along important trade routes.
The earliest known example of a purpose-built hotel dates back to 705 AD in Japan, when the Nishiyama Onsen Keiunkan, considered the oldest operating inn by the Guinness Book of Records in the world, was established making the hotel over 1300 years old.
The Nishiyama Onsen Keiunkan Inn, nestled in the mountains of Hayakawa, Japan, offered weary travellers a place to relax and rejuvenate in natural hot springs.
Remarkably, the Nishiyama Onsen Keiunkan remains open today, showcasing how the concept of hospitality has endured for centuries.
In ancient Rome and Greece, guest houses and mansions were built near or along important trade routes and ports, where weary travellers and merchants could find accommodation, socialise, drink beer and get fed.
During the Middle Ages, monasteries also served as inns for pilgrims.
Even today, pilgrims and non-pilgrims alike stay in low-cost lodgings called Albergues on their way to Santiago de Compostela in Spain for the Camino de Santiago as pilgrims have done for over a thousand years.
The hotel boom begins with the arrival of the Industrial Revolution
The Industrial Revolution and the advent of railroads in the 19th century transformed hotels.
New urban centres and commercial hubs needed more sophisticated lodging options to accommodate a growing class of business travellers.
The late 1800s saw the birth of iconic hotels such as The Savoy in London, The Ritz in Paris and The Waldorf-Astoria in New York, combining luxury with advanced services like elevators, room service, and electricity that were novel at the time.
Conrad Hilton was one of the early pioneers of the hotel industry
Conrad Hilton, born in 1887 was the founder of Hilton Hotels and played a pioneering role in creating the hotel industry that we see today.
In 1919, Hilton purchased his first hotel, the Mobley Hotel in Cisco, Texas, seizing the opportunity to accommodate oil workers flooding the area.
Recognising the potential for national expansion, Hilton focused on strategic growth, aiming to establish hotels as places of luxury, reliability, and consistent service for both business and leisure travellers.
Conrad Hilton’s innovative approach included standardised amenities across properties, ensuring guests could expect the same high quality regardless of location—something of a novel concept at the time.
Conrad Hilton introduced the first coast-to-coast hotel chain in the United States, and by 1946, Hilton became the first hotel company listed on the New York Stock Exchange.
His vision extended beyond American borders, marking the beginning of a truly global hotel chain that brought American values, standards and style to other parts of the world.
Hilton’s commitment to upscale service, global expansion, and standardisation laid the foundation for the modern hospitality industry, influencing countless other brands to follow in his iconic footsteps.
The arrival of the first US boutique hotels in the early 1980s
In the early 1980s, the first boutique hotels arrived in the United States. The first pioneers of the boutique hotel movement in the US were Kimpton Hotels and Morgans.
Kimpton Hotels was founded by Bill Kimpton, a former investment banker at Lehman who had travelled extensively in Europe on business and wanted to bring the quaint European hotel concept to America.
At the time, the hotel landscape was filled with either large convention hotels or low-end boxy hotels with little charm or character.
Morgans was founded by Ian Schrager and his business partner Steve Rubell—the co-founders of the infamous Studio 54 nightclub in New York City.
Ian and Steve wanted to bring some of the legendary nightclub magic to their hotel lobbies just as Bill Kimpton wanted to introduce some boutique European charm to US hotels.
These early boutique hotels spearheaded the global boutique hotel movement where every major hotel group has its own boutique brand today.
Eventually, Kimpton Hotels was bought by IHG Hotels & Resorts of the UK in 2015 and Morgans Hotels has been owned by French hotel giant ACCOR since 2020.
The relevance of hotels in the age of Airbnb and home sharing
Despite the recent boom in home-sharing platforms like Airbnb, hotels continue to hold a prominent place in the accommodation sector, especially for entrepreneurs, freelancers, and digital nomads seeking prime locations for both work and leisure.
Hotels offer a wide range of services, amenities and facilities
Hotels offer specific advantages that are harder to match on home-sharing platforms like Airbnb. This can include facilities like swimming pools, 24-hour gyms, luxury spas, restaurants, rooftop bars, breakfast service, 24-hour room service, business centres, private meeting rooms and more.
Hotels don’t expect you to take the trash out!
It’s quite common that you will be expected to take the trash out if you are staying in an Airbnb despite paying for cleaning fees. Hotels don’t expect you to take your trash out or to clean up after yourself. It’s all part of what is expected with a hotel experience.
Hotels provide consistency and reliability
One of the key reasons hotels remain relevant is the consistency of service they provide. Unlike home-sharing properties, which can vary greatly depending on the host, hotels operate with standardised procedures and protocols designed to meet guests’ expectations.
Hotel chains like Hilton, Hyatt, Accor and Marriott for example will ensure that a guest will get a consistent experience no matter where in the world the hotel is located. This level of consistency can be reassuring for frequent travellers, especially when travelling abroad.
For business travellers or digital nomads, this reliability is crucial. They can trust that their room will be clean and ready on time, the internet will be fast and reliable, and their stay will be pleasant and hassle-free.
Hotels offer prime city centre and beachside locations
Hotels often occupy prime real estate in major cities and popular destinations, offering convenience that many Airbnb properties cannot.
For example, hotels in city centres provide direct access to business districts, co-working spaces, transportation hubs, and key attractions.
This is a massive advantage for professionals who need to be near meetings, conferences, or other essential facilities.
Hotels employ highly trained hospitality professionals
The hospitality industry thrives on well-trained professionals dedicated to creating a seamless experience for guests.
Whether it’s the concierge who can recommend the best restaurant or the housekeeping team ensuring spotless cleanliness, these professionals have spent years honing their skills.
In contrast, while many Airbnb hosts may be kind and hospitable, they usually lack formal training gained via dedicated hospitality management schooling.
Hotel professionals are trained to anticipate guest needs, handle problems quickly, and maintain a level of service and discretion that meets international standards.
This expertise, from front desk clerks to luxury concierges, is particularly important for business travellers or digital nomads who want a smooth and professional check-in experience when they arrive after a long flight or a hectic work schedule.
The flipside: Airbnb and their live like a local experience
On the flip side, platforms like Airbnb have introduced some attractive benefits that appeal to certain travellers. A live like a local experience, complete with personal touches and unique settings, is often appreciated by travellers who want to feel less like a guest and more like a local.
The presence of a fully-equipped kitchen is another advantage for those who prefer to cook their meals and not eat out all the time, something not every hotel is able to offer.
Airbnb’s are often more affordable for mid to longer-term stays compared to hotels although Airbnbs are no longer cheap by any means these days!
For digital nomads or remote workers, staying in a home or apartment can sometimes foster a deeper connection with the neighbourhood, providing a sense of routine and comfort that mirrors their own home life.
Airbnb hosts, while generally not trained professionals, can offer local tips and personal insights that contribute to a more authentic, personalised experience in certain cases.
This, however, is probably rarer as often the Airbnb guest might have limited contact with the host unless there is a problem.
This can often be the case in major cities like Barcelona where Airbnb rentals are more of a business as part of an Airbnb portfolio, rather than an individual renting their private home some of the time.
While we are talking about hotels, we should also take into account hostels and co-living spaces that are becoming increasingly popular for digital nomads.
Hostels – a popular choice for solo travellers, backpackers and digital nomads
Hostels have been around for a long time and have been the go-to option for backpackers, solo travellers and under 25s looking for low cost accommodation and a fun time.
At a hostel, you will typically have a bed in a dorm (single-sex or mixed) and have access to a shared shower room and toilet facilities.
Hostels will usually offer some kind of breakfast and meal service at an extra cost. Hostels often offer private rooms as well at a higher price.
Hostels are designed to stimulate and encourage social interaction. There are common rooms in which to meet and mingle with other guests.
Co-living communities are a growing phenomenon but actually not that new
Co-living communities are similar to hostels in many ways but usually offer more services and purpose-designed activities that actively encourage interaction between guests. Co-living has its roots in 1970s Denmark where a form of communal housing was designed. Co-living took off with force globally during and post-pandemic as remote working and the digital nomad lifestyle became more widespread.
Where hostels are primarily designed for short stays, co-livings will have longer stays, from maybe one month to even several years. You can read more about co-livings and how they started here
Hotel, hostel, co-living or Airbnb – what’s the best option for you?
The decision between staying in a hotel, hostel, Airbnb or co-living ultimately depends on individual needs and the type of experience desired.
It’s also less about price. In the early days of Airbnb you could potentially save a considerable amount of money by living like a local. These days Airbnbs are no longer “cheap” and with all the fees like cleaning and for hosts expenses going up the difference isn’t so clear cut anymore. Airbnbs will usually still work out a little less expensive for longer stays, several weeks or more but for short term, the price difference isn’t as big.
Price aside, entrepreneurs or businesses often value the professionalism, reliability, and prime locations that hotels and co-livings offer, as these are critical for ensuring a productive and stress-free trip.
Hotels provide a certain level of privacy and discretion and if you are not in the mood or don’t have time to socialise you can stay at a hotel without being bothered, yet have everything available at your fingertips when you want it. A quick call to reception in a larger hotel will get you everything you need and fast.
Digital nomads may sometimes prefer Airbnb or co-livings for longer-term stays where hotels tend to get expensive, especially when looking for a more home-like environment where they can work, cook, and immerse themselves in the local living experience.
Hostels can be ideal for short trips and solo travels and for those on a tighter budget who are comfortable sharing a room with strangers.
As accommodation is getting increasingly expensive in popular cities like London, Paris, Rome, Madrid, Barcelona and Lisbon to name a few, hostels can provide a more affordable option and a chance to meet similar people.
Conclusion: hotels will no doubt continue to adapt and thrive as they have done for thousands of years
Despite the growing popularity of home-sharing platforms like Airbnb, hotels remain a crucial part of the accommodation landscape, particularly for professionals, businesses, and digital nomads.
Their unparalleled commitment to service, strategic locations, and experienced staff make them indispensable for those demanding a high standard of hospitality.
This can be especially true if you have just travelled 14 hours to a city you don’t know and aren’t familiar with the local language.
At a city centre hotel, you will be greeted in English and be resting in your freshly made bed in no time and without fuss!
At the same time, the rise of home-sharing introduces fresh opportunities for more personalised and home-like experiences, offering a valuable alternative for certain types of travellers.
With an Airbnb there’s perhaps some uncertainty and adventure involved.
Do the same 14 hour flight and arrive in a city you don’t know and then find your property, find the keys and then make yourself comfortable in a place that is hopefully clean and as described on the website, assuming all goes smoothly of course!
Ultimately, the future of travel will likely see a blend of both worlds as hotels innovate and home-sharing platforms refine their offerings to meet the diverse needs of modern travellers.
Whether you’re a business executive closing deals in a city’s financial district or a digital nomad settling in for a month in a new culture, the choice between a hotel, hostel, co-living or an Airbnb stay will depend on your specific needs, but hotels are far from obsolete in today’s accommodation marketplace and probably never will be.
Even if home sharing is a fad that might fade away, hotels and hostels will continue to quietly ply their hospitality trade as they have been successfully doing for hundreds or even thousands of years.
What are your thoughts on hotels vs home share like Airbnb, let us know your experiences in the comments section below