Prices in Dubai’s hotel market are being hit by more than 4,200 active short-term lets available in the city on Airbnb.com, according to new research.
Property consultancy Knight Frank said that the website, which enables consumers to rent homes for prices that are generally cheaper than a hotel, was hurting the local hospitality industry, specifically operators with more affordable rooms, or with fewer facilities.
The research said that while hotel operators had previously been dismissive of competition in the form of short-term letting websites, many were now recognising the ‘Airbnb effect’ and in some markets had lobbied aggressively against it.
“From a supply perspective, hotels in Dubai are insulated to some degree from the effects of the holiday home market as supply is largely ‘top heavy’ and internationally branded,” the research stated. More info
By P. Deulgaonkar www.arabianbusiness.com