Price-gouging is "rampant" in the hotel industry, and Airbnb has saved consumers more than $16 million over several events in major cities of late, the company said.
In a report issued Tuesday, the home-sharing service detailed why it believes hotel prices continue to climb, why companies are "desperate" to continue doing this, and why Airbnb is saving "millions" for consumers, as a result.
This comes as a response to news that circulated earlier in the week, discussing the hotel industry's plans to "combat" Chief Executive Brian Chesky and his San Francisco-based start-up.
The New York Times wrote in a report over the weekend: "'Airbnb has brought hotel pricing down in many places during holidays, conventions and other big events when room rates should be at their highest and the industry generates a significant portion of its profits,' said Vijay Dandapani, chief executive of the Hotel Association of New York City, which works with the American Hotel and Lodging Association."
The hotel industry's plan against Airbnb shows "the hotel cartel is intent on short-sheeting the middle class so they can keep price-gouging consumers," an Airbnb spokesman told the Times in an email. "With more than 250 government partnerships over the last year, we have shown our seriousness of purpose when it comes to putting in place fair rules."
Investors have pegged Airbnb's value close to $30 billion, while hotel leaders such as Hilton's market capitalization is $19 billion, and Marriott's sits at $35 billion.
Link to entire CNBC article: Airbnb doubles down it its efforts to fight hotel 'price-gouging':
Thank you for viewing the Incline Village Real Estate blog. If you require additional information or discussion contact me via Randy@RandyBull.com.
