The temperature is rising in the ongoing battle between the American Hotel & Lodging Association and the leading home sharing service, Airbnb.
In the aftermath of a New York Times report last week that supposedly revealed a secret action plan by the American Hotel & Lodging Association to rein in Airbnb, on Tuesday Airbnb published a report suggesting price-gouging is “rampant” in the hotel industry, adding that its service has recently saved consumers more than US$16 million over several events in major cities.
The Airbnb report summarized: “In a dynamic economy, supply and demand forces will impact the price of a hotel room or an Airbnb listing. Some fluctuation is natural and appropriate. But for too long, hotels have had nearly unchecked power to raise rates and price gouge consumers at will. While more research into this matter is necessary, it is clear that Airbnb has given consumers more affordable accommodation options and left hotel industry officials deeply concerned about their ability to price gouge consumers in the years ahead.”
Tuesday’s Airbnb report also cited New York hotel owner, chief executive of the Hotel Association of New York City and long-time Airbnb critic Vijay Dandapani as saying, “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.”
In a story published by CNBC on Tuesday about the new Airbnb report, it quoted an AH&LA spokesman as saying, “We have been transparent and clear in our advocacy efforts… And we call on Airbnb and short-term rental companies to stop being disingenuous to state and local authorities about their operations’ facilitation of illegal hotels, and stop misrepresenting their platform as one that simply supports the middle class when it’s clear the bulk of Airbnb’s revenue is coming from commercial activity.”