Shared Economy is getting really popular. Companies like airbnb, Uber, Lyft or Taskrabbit sometimes change a whole branch. Airbnb had about 30 million guests since their establishing in 2008. They are offering more than 800.000 accommodations and that is more than the Hilton group with about 680.000 rooms (August 2014).
The study from the Boston University is showing the effects of airbnb on hotels in Texas. They found out that low-end hotels are more affected by airbnb then luxury hotels or hotels with business travelers. The hotels responded with lower prices. For Austin they estimate a loss of revenue for hotels by 8-10%.
Airbnb has the advantage of having almost zero marginal costs. They can easily offer more or less accommodations. Another advantage is that they have a wide range of products and services. They can offer luxury suites as well as a shared room.
You find a more detailed analysis in the pdf.