What could a global hotel executive have to say about Airbnb? The rule is typically: ‘If you don’t have anything nice to say, don’t say anything at all.’ Since peer-to-peer accommodation start-up Airbnb launched in 2008, the mood has been tense between traditional lodging providers and the DIY movement that Airbnb represents.

However Kimo Kippen is the Former Chief Learning Officer at Hilton Worldwide and view on Airbnb is defined by one word: exciting. Airbnb many not own hotel rooms, valuable property, or even a long-standing reputation, but what it does have is an ingenious platform that grants so much more autonomy and choice to its users. Kippen sees this competition as inspiration and is pushing Hilton to make greater efforts to innovate and keep up, for example through an integrated app that allows digital check in, greater room control, and digital room keys.

There are countless studies which demonstrate that competition increases motivation – as far back as 1891, psychologist Norman Triplett found that the presence of another cyclist made his study participants pedal faster.

The rivalry between companies like Apple and Microsoft has led to ever-advancing technology for the public, the result of two competitors spring-boarding off one another and pushing each other to innovate.

The hotel business is booming, with the industry showing all-time high performance and growth projections in 2015, according to competitive benchmarking firm STR. Supply is climbing, and the pace of hotel closings is slowing. This is even as a study from Boston University in June 2016 found that Airbnb has contributed to a reduction in “aggressive hotel room pricing, an impact that benefits all consumers, not just participants in the sharing economy.” That likely hurts the bottom-line of hotels and yet they have, on the whole, been resourceful enough to have the best year ever. In turn, changes are being enforced on Airbnb, most recently through a new law in New York that only permits room rentals if the host is also living in the apartment, and prohibits rentals in multi-unit buildings for less than 30 days – violations are punishable by a $7,500 fine. This is controversial for many reasons, and no doubt hinders Airbnb’s ability to function. Will they find ways to remain competitive?

Hotels and peer-to-peer accommodation will find themselves in a beneficial rivalry only if the focus is on self-improvement, as opposed to the destruction of the other. When the latter happens, it punishes the client and hinders the spirit of innovation. [BigThink]