> On the very optimistic side, consider the possibility that AirBnB makes hotels almost entirely obsolete (it is definitely putting pressure on them). Hotels are expensive and cookie-cutter. While in some ways predictable is their advantage, expensive is not, and cookie-cutter is boring. AirBnB offers location (location location), comfort (home away from home), privacy (if you want it), and novelty (every trip is different). Major pluses in my book.

I don't think you've done the market segmentation here... you're assuming that the majority of the market is similar to you.

Business travelers want reliability and predictability, and the companies that they work for want to negotiate rates in exchange for being preferred vendors.

Travel agencies need the reliability and predictability.

Anyone organizing for a larger group (weddings, sports teams, church trips, conferences, etc.) can't deal with a smattering of different housing providers.

A lot of people just don't want the obligations that come with the AirBnB experience... if you've got a family with three young kids that tear the crap out of things and make messes, a hotel room is a better bet.