You can frequently get a room on AirBnB for a lot less than 20% off the price of a hotel. Often you're getting prices that are comparable to a bunk in a hostel, but for a private room instead. 20% taxes are not enough to account for this. The actual difference in price is due to changes in the capital and labor structure. Lots of people are renting out spare rooms that would have otherwise been empty, spending a few extra minutes making beds they would have made anyway.