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Monday, February 26, 2018

Airbnb vs Hotels

Saw an early analysis that showed this.

The Airbnb Effect: Cheaper Rooms for Travelers, Less Revenue for Hotels

Hotels enjoy their highest profits when rooms are most demand, like during holidays and big events. Unfortunately for them, Airbnb is taking away some of that pricing power, according to new research research by Chiara Farronato and Andrey Fradkin.

article by Dina Gerdeman in HBS Working Knowledge

Airbnb is revolutionizing the lodging market by keeping hotel rates in check and making additional rooms available in the country's hottest travel spots during peak periods when hotel rooms often sell out and rates skyrocket, a new study shows.

That's bad news for hotels, which have traditionally earned their biggest margins when rooms were scarce and customers were forced to pay higher rates—such as in Midtown Manhattan on New Year's Eve. And it's good news for travelers who don't have to pay through the roof to get a roof over their heads during holidays or for big events.  .... "

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