Airbnb, an online platform for peer-to-peer short-term accommodation rental, is growing witha spectacular speed in most countries of the world. This creates a great regulatory challenge, as empirical evidence suggest that Airbnb may have a significant impact on the traditional hotel industry and on the housing market. The aim of this analysis isto compare the offers of Airbnb to traditional services and to examine the competition between the different business models. The empirical analysis is based on a unique dataset of scraped data on the listings of Airbnb and Booking.com in Warsaw, Poland. The offers are compared using descriptive statistics and KDE analysis. The paper supports that Airbnb is providing a cheaper alternative for hospitality services in all price segments. Controlling for common attributes (e.g. distance from the city centre),hedonic price regressions show significant price differences between the platforms.