The sharing economy beats Paris luxury hotels

The Paris region offers 50,000 Airbnb listings—nowhere in the world is more accommodation available on the home-sharing website. Airbnb offers between 380 and 400 Paris properties at over 500 euros a night. Of those, about 40 charge over 1,000 euros ($1,090). And that poses an increasing problem to the city’s 5-star hotels that offer about 1,500 rooms in total. The Bristol Hotel suffered a 20 percent drop in revenue in the first half of this year and an occupancy rate that fell to 61.2 percent from 69.2. The Four Seasons George V saw a 5 percentage point drop in occupancy to 66 percent in the same period. The Plaza Athenee cut its prices by 20 percent last winter. The luxury hoteliers complain about the “unfair advantages” of Airbnb. That’s the usual complaint of losers. Meanwhile, travelers, tourists, and locals win.

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The sharing economy beats Paris luxury hotels

The Paris region offers 50,000 Airbnb listings—nowhere in the world is more accommodation available on the home-sharing website. Airbnb offers between 380 and 400 Paris properties at over 500 euros a night. Of those, about 40 charge over 1,000 euros ($1,090). And that poses an increasing problem to the city’s 5-star hotels that offer about 1,500 rooms in total. The Bristol Hotel suffered a 20 percent drop in revenue in the first half of this year and an occupancy rate that fell to 61.2 percent from 69.2. The Four Seasons George V saw a 5 percentage point drop in occupancy to 66 percent in the same period. The Plaza Athenee cut its prices by 20 percent last winter. The luxury hoteliers complain about the “unfair advantages” of Airbnb. That’s the usual complaint of losers. Meanwhile, travelers, tourists, and locals win.

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