I know people who have bought properties specifically to put them on Airbnb, 24/7/365. They believe that they can get more money out of the property that way than if they put it up for a more traditional long-term rental. If it weren't for Airbnb, they wouldn't have bothered, and those properties would likely have ended up being bought as a primary residence or leased as a long-term rental home.
I don't think most people object to the idea of people (short-term) renting out a room in the place where they live, or even renting out their in-law unit, or (perhaps slightly more controversially) renting out a vacation home while they aren't there. But turning a residential property into a year-round short-stay hotel does indeed reduce the housing supply.
Not sure how to answer your question about hotels. I don't know if business is worse for them, or if there are indeed more travelers than before.
I don't think most people object to the idea of people (short-term) renting out a room in the place where they live, or even renting out their in-law unit, or (perhaps slightly more controversially) renting out a vacation home while they aren't there. But turning a residential property into a year-round short-stay hotel does indeed reduce the housing supply.
Not sure how to answer your question about hotels. I don't know if business is worse for them, or if there are indeed more travelers than before.