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New analysis by STR Global has revealed that Airbnb now represents a significant and growing share of the London accommodation market, with average rates increasingly higher than that of hotels in the capital.
The research demonstrated that the accommodation on offer through Airbnb, where guests can connect with hosts to rent rooms or properties all over the world, varied according to borough in London. However, it was found that on average, rates to stay in these alternative accommodations were higher than that of a hotel room in the city- with 52% of Airbnb listings charging £100-£199 per night compared to only 46% of hotels. Airbnb demonstrated an even higher presence in the £300-£399 per night accommodation bracket, representing 12% of the total listings in London.
Assessing the prices of accommodation in the different London boroughs, it was revealed that only three offer pricier hotel rates than Airbnb- Hackney, Lambeth and Westminster.
Elizabeth Winkle, STR Global's managing director commented on Airbnb's success: "Across Europe, alternative accommodations are not a new phenomenon...[but] what has changed is the distribution platform providing an accommodation owner the means to easily and seamlessly list their own property (or properties) to guests. Airbnb is the most recognisable of these 'peer-to-peer' or 'rental-by-owner' companies, and it's inventory continues to increase across the globe."
For the purpose of the analysis, STR based the sample of Airbnb properties on criteria such as type of unit and total reviews, narrowing the selection to 11,000 listings considered 'competitive' with London hotels. This was compared to approximately 134,000 hotel rooms in the London boroughs. Under the assumption that all rental listings and hotel rooms are free for the same number of nights, this would demonstrate Airbnb represents an approximate 8% share of the market.
