NEW YORK (TheStreet) -- Airbnb hasn't been around for a full six years but it's already shaken the global hospitality industry, forcing longstanding incumbents to adapt or suffer.
More than 30 million consumers have used Airbnb to find a temporary resting spot, be it for a one-night stay or an extended month-long rental. And as Airbnb makes it easier for guests and hosts alike, the startup is upending all levels of the hotel industry for both business travel as well as vacations.
According to a recent report from Boston University, a 10% increase in Airbnb supply results in a 0.35% decrease in hotel room revenue, which translates into a 13% impact on revenue in Austin, Texas, which is home to the highest Airbnb supply.
The report's authors -- Georgios Zervas, Davide Proserpio and John W. Byers -- also found that lower-priced hotels and hotels that don't cater to business travel are the most affected by Airbnb. As a result of these impacts, the researchers found, hotels are reducing prices in an effort to stay competitive.
"Our work provides empirical evidence that the sharing economy is making inroads by successfully competing with, and acquiring market share from, incumbent firms," the report reads.
On top of that, Airbnb is getting real recognition inside and outside the tech space. Warren Buffett endorsed the startup in his annual letter to Berkshire Hathaway (BRK.B) shareholders, saying that the startup "may be especially helpful to shareholders" looking for lodging for Berkshire Weekend.