Listen Now: AirBnB Takeover: How Hotels Are Now Fighting Back
More people are checking into the idea of AirBnb, and that could be good for your wallet.
Since it debuted in 2008, AirBnb has exploded. The idea of renting your home to people visiting your city appealed to both owners and anyone looking for a place to crash.
According to Ladders.com, when AirBnb started the number of properties up for grabs was fifty-one. Five years later that number grew to more than fifty thousand, now it’s over half a million. Some cities are starting to tighten restrictions on the company, in some cases prohibiting them altogether. But in the early days anyone could list their home on the site.
So how do hotels and similar establishments keep up? By dropping prices. According to the ladders study, every time AirBnb’s supply doubles in size hotel revenue drops two percent. In order to keep up hotels are lowering room prices or offering special promotions to keep people checking in.
The bottom line? Hotels are facing cutthroat competition, but that is great news for saavy travelers searching for the best price.
CBS News Radio national business journalist Brian Banmiller has spent more than 40 years in the news industry, covering business, politics and the economy on television, radio and in print. Currently, his “Banmiller on Business” reports are delivered to an audience of millions nationwide.
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