Well, the short of it is that AirBnB is becoming more and more expensive because it has gone through what a lot of these open technology platforms go through – their permeation by big-business shadow forces. This is not to say these are some sinister forces seeking to bring destruction, even though we refer to them as “shadow forces,” but they’re perhaps the main reason why open platforms in general tend to lose their initial purity.

Airbnb is experiencing a rise in costs, reflecting both the success and challenges of their platform. Increased expenses are driven by a thriving user base, yet they also pose a dilemma as the original mission of providing affordable services to the masses becomes compromised due to escalating prices. This has led to a slowdown in bookings, more cancellations, and a decline in overall reservations.

Now, the question at hand is how to mitigate slow periods in Airbnb bookings and how to draw more people to properties. The solution to this is a mix of using promotions, targeted marketing efforts, and offering incentives.

Furthermore, delivering top-notch customer service and promptly addressing reviews can play a crucial role in building a positive reputation and enticing potential customers. Additionally, upgrading the aesthetic appeal of the property by enlisting residential and commercial painting and decorating services and purchasing comfortable furniture, can also attract customers to the property. Keep in mind that these steps often work together to keep your property bustling with activity.

However, it’s crucial to note that the landscape is changing. There’s a new phenomenon where hoteliers are no longer operating traditional strings of hotels in the conventional sense. This shift underscores the evolving nature of the hospitality industry, prompting Airbnb owners to adapt their strategies to the changing dynamics in order to stay competitive and thrive in the marketplace.

This way, it’s no longer a market whose price is dictated to by home owners with extra rooms and couches renting them out for some extra money to help them get through the month or for whatever other “reasonable” reason. Instead, it’s purely a profit-hunting model which is backed by property developers who have huge capital funds at their disposal and so they can pretty much just dictate what the pricing should be.

If for example you compare your AirBnB listing of a bedroom in a house that’s in a nice neighbourhood, close to all amenities and the works, and you compare that with a similar listing that fetches quite a bit more than your asking price, obviously you’ll drive your price up as well because that’s what the market seemingly suggests you should be aiming at. It’s one thing if you see just one listing, but there are many such listings, which makes the raising of the prices inevitable.

Peer-to-peer ride services such as Uber experience this in a little bit of a different way though. The prices aren’t driven up for the consumers, but rather wealthy individuals and corporations finance cars in their numbers and then essentially make arrangements with drivers to drive them and they then share the earnings with the owner.