It makes sense to rent in some circumstances, similar to why people rent villas.

E.g. Many prime areas in cities typically have few (if any) luxury hotel options (e.g. Omotesando in Tokyo, Old South in Amsterdam, Le Marais, to name a few. A family with kids also can do very well renting an apartment with a kitchen (and sometimes staff), especially if jet-lagged. And you often get more value for money (though with increased risk)

AirBnB is just an on-line marketing channel that offer from the very cheapest to very high-end, nothing more.