Hotels in large cities feeling the effects of AirBnB
According to a recent report from Merrill Lynch analysts, by the end of 2016 listings on home-renting platform Air bnb Inc. could make up as much as 1.2 per cent of hotel offerings around the world.[1] Figures have also shown that the company has, on average had a 40 to 50 percent growth in listings per year and could make up 3.6 to 4.3 per cent of inventory by 2020.
The report comes after it was revealed that nowhere in the world has more accommodation available on Airbnb Inc. than Paris. The city’s luxury hotels will be hard hit with more research suggesting that capacity will be 60 per cent greater in 2018 than it was a decade earlier.[2]
The rival company doesn’t just offer travellers the option for cheaper rates for rooms, but with its growth, it now also offers upscale selection of rooms and locations that could rival those of many luxury hotels in large cities.[3]
In order to battle the tough competition that has proven to be attractive for tourists, luxury hotel groups have been advised to continue to offer a fundamentally different experience.
References
[1] http://www.marketwatch.com/story/as-airbnb-grows-hotel-prices-expected-to-drop-2015-08-13 – accessed 14th August 2015
[2] http://www.reuters.com/article/2015/08/09/us-hotels-france-airbnb-idUSKCN0QE0CO20150809 – accessed 14th August 2015
[3] http://www.jllapsites.com/research/are-hoteliers-finally-taking-notice-of-airbnb/ – accessed 14th August 2015
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