FWIW I’ve probably stayed in 30+ airbnbs over more than a decade and the experience has been almost universally superior to hotels. Not denying others have had different experience, but always find these threads surprising.
I’ve had great experiences renting houses when that is what the situation calls for, but the most of my travel is to cities. In cities the main challenge is inventory and price and today I’m quite willing to spend a little more for staff and a free breakfast, after countless hassles trying to spend a little less on Airbnbs. That said I’ve recently stayed in nice hotels in NYC for $150/night which you can’t touch on Airbnb.
AirBnB allows you to find a temporary dwelling in places where hotels are few, or absent.
AirBnB also provides extra capacity when a city or town gets overcrowded due to an event (matches, concerts, convents, etc). Building a proper hotel is much more capital intensive than converting a house or an apartment into an AirBnB place, and back into a normal long-term rent unit, or your own abode, when needed.
I would like a pony and a million dollars, but the real world is full of tradeoffs.
Vacation rental fulfil a niche that hotels do not, and I don't understand people who view them as substitutes. The fewer people use them the better. More for me and at better prices.
That said, Im probably not the median consumer. When I vacation, hotels cover almost none of my needs.
Im looking for a private beachfront Jacuzzi, hobbit hut in the forest, or someplace to party with family and kids.
Airbnb had novelty, inventory, and savings as its special sauce.
Nowadays we all know what a sub-par, overpriced Airbnb is like and it’s worse than a hotel because it’s usually far more inconvenient.
So we’re back to a hotel like experienced as the desire: convenience, available, and competitively priced.