It seems like every week, there is a new story about how Airbnb prices are getting out of control. But now, the proof is in the pudding. In an investor call last week, Airbnb’s chief financial officer, Dave Stephenson, revealed that the average price to rent an Airbnb has jumped by 36% since 2019.
The company defended the rising prices and claims that Airbnbs offer more value to travelers than traditional hotel stays. Stephenson explained, “The [rates] on Airbnb still can provide a great location, maybe a fully stocked kitchen, a washer and dryer, all the reasons why you might want to stay at Airbnb versus other alternatives.”
While that could be true, it’s a way bigger jump than hotel brands are seeing. In comparison, Marriott’s rates were 12.8% higher since 2019 and Hilton’s jumped by only 7.8% for the same period.
Hidden fees and sticker shock at checkout even prompted the rental giant to change how its pricing is displayed. Despite all this, Airbnb is still a giant in the vacation rental industry and nothing seems to deter them, nor is it causing a seismic shift in the hotel space. People are seemingly still opting for Airbnbs over hotels.
Airbnb is in a league of its own and they aren’t interested in competing with hotels, either. There’s always been a great deal of chatter on whether or not Airbnb will launch a loyalty program similar to that of many hotels, but they simply don’t see the need to have one. “On the competitive front, we have a lot of competitors and a lot of different categories. But I think Airbnb kind of stands in a class of its own,” shared Airbnb CEO Brian Chesky.
by travelers, for travelers.
