ZURICH, Switzerland — A recent UBS report claims Airbnb is making it harder for hotels to charge higher rates on what the industry calls “compression nights” — nights when more than 95 per cent of rooms are occupied. On these occasions, UBS estimates hotels record between 35 per cent and 70 per cent more revenue per available room.
The number of compression nights, however, declined in 2015 — despite occupancy reaching record highs. UBS analysts say the decline is due to travellers using Airbnb to avoid soaring hotel rates.
“Going forward, we do expect a continuation of that same trend — more Airbnb listings, fewer compression nights and less hotel RevPAR growth,” says Robin Farley, Leisure and Lodging analyst for UBS.