What Happened to Airbnb Pricing?

Question

I recall back when AirBnB was growing (circa 2013-2015 in my mind) the appeal was primarily price. Yes, there were conveniences around having an individual place, etc, but I recall most AirBnBs being priced well below hotels of roughly equal quality.When I look now, it is often cheaper to stay in a hotel than an AirBnB of roughly equal quality, sometimes significantly so. This pattern has held in at least 10 major/minor US cities I&rsquo;ve used over at least the past year.What economic forces are at work to cause this?

codingdave · Accepted Answer

I think the key phrase is "roughly equal quality". Back in the day, it was not equal. There was nowhere near the same level of cleanliness and amenities on many AirBnBs. Over time, people started to make a living at it, the quality level went way up, and prices followed.