Hoteliers are seeing disappointing results as they compete with home-rental companies like Airbnb during the busiest times of the year.
The Wall Street Journal reports that Airbnb listings during Pope Francis’s visit last week reached nearly 20,000 in New York City. Meanwhile, Philadelphia saw more than 7,000 listings from Airbnb during the visit.
While the papal visit is a good example of Airbnb drawing consumers away from traditional lodging options, it is not an isolated incident. The articles says hotels saw a surge in competition from Airbnb during other popular events, such as the Kentucky Derby and Coachella Valley Music and Arts Festival. Seeing as hotels rely on one-time or annual events for high room rates, hoteliers are finding it increasingly difficult to maximize profits during large events when Airbnb is diminishing hotels’ pricing power.
