On some level, this is hotels failing to compete. If I look up both airbnbs and hotels in a popular vacation town (randomly using Big Sky, MT, april 18-20, for this example) then I see hotels and airbnbs in similar locations, and at similar price points. However, there are airbnbs cheaper than the cheapest hotels, and they have a number of amenities that no hotels offer- notably, a washer/dryer in-unit, a full kitchen, and multiple actual rooms.

Given the same nightly price, who would choose a minimal pared-down hotel room over an entire furnished condominium?