usually the prices are on par with AirBnBThis varies a lot from city to city. In Austin, AirBNB easily wins (last time I checked) on location and niceness for the price. Hotel prices are exorbitant. Recently I traveled to Houston, though, and was shocked to find that hotels were price-competitive with AirBNB. My girlfriend and I expected to rent an AirBNB but ended up staying in a pretty nice hotel for less than $150 a night. AirBNB prices in Houston were similar to Austin with much less selection and not the greatest locations, so the convenience and predictability of a hotel won out. (Friends staying in Austin have had almost all positive AirBNB experiences, but there have been a couple of unexpectedly poor experiences as well.)
I think that as with ride-sharing versus taxis, the greatest disruption happens in cities where the traditional services are very poor or very expensive. Houston has plenty of cheap hotels and seems like it would be fine without AirBNB. If I lived in New York City and was used to hailing cabs, I might never have tried Uber. In Austin with our unforgivably shitty taxi service, and now our exorbitant hotel prices, AirBNB and ride-sharing services are fundamentally new, different, and better than the traditional offerings.