Travel Tips

Travel Tip: How Airbnb is Affecting the Hotel Industry

Locations in this article:  New York City, NY San Francisco, CA

hotelMost of you have heard about Airbnb, and many of you have tried it as an alternative to the traditional hotel stay.

Officially, hotels say that Airbnb has had no impact on their bottom line.

Really? Consider this: Of the total available rooms in New York City, Airbnb now represents about 21 percent.

In San Francisco, it’s more than 50 percent.

Across the board, Airbnb will account for 5.4 percent of all room supply in the U.S.

What’s the result? In a number of cities, large hotel companies are now ramping up their merger activity and trying to bring all their bookings in house on their own websites.

Online Travel Agencies, also known as OTAs, have also had a big impact on hotel profitability.

Expedia now accounts for 17 percent of all U.S. hotel bookings.

OTAs charge hotels fees between 12 and 25 percent of room revenue.

What a number of smart travelers are doing is getting a quote from Expedia, then calling the hotel directly to see if they’ll beat the online offer.

In many cases, the hotels will gladly do that, essentially splitting that online fee with you.

For more information about Airbnb and online travel  hotels and accommodations, check out:

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