Not quite hotel space as I have yet to find a hotel that can accommodate several families traveling together with a shared space, including a fully stocked kitchen, washer and dryer, parking, etc. There's definitely a demand for something like this that isn't filled in any other way.

If you are looking for a permanent place somewhere in Europe, it's very difficult to quickly find monthly or weekly rentals with the appropriate monthly or weekly discount you will find on Airbnb. I don't discount it's négatives, but with the paperwork burden to find a medium or long term place in many areas in Europe Airbnb does the best job of cutting through all of that and getting you a place now

Great point. Hostels seem very fun.

Without airbnb more hotels would be built instead of apartment buildings. The tourists will get a place to sleep eventually, you just have to decide whether it's in an apartment or a hotel. That will determine future construction projects