Airbnb is commanding higher rates than hotels as it secures an increasingly significant share of the London accommodation market, according to research from STR Global.
Of the 11,000 Airbnb listings in the capital deemed to be competitive with traditional hotel rooms, 52% charge £100-199, while 46% of the 134,000 hotel rooms fall into the same price bracket.
Taking into account all 25,361 Airbnb units in London, 52.6% of which are entire homes or apartments, the business offers around 8% of the total accommodation market in London.
The three largest boroughs (Westminster, Camden, and Kensington and Chelsea) combine to hold 51% of London's hotel supply and 38% of Airbnb's listings. Meanwhile, 11% of Airbnb's London listings are in Hackney, while only 1% of hotels are located in the borough.
Elizabeth Winkle, STR Global's managing director, said that alternative accommodations are not a new phenomenon in Europe with the long-term existence of pensions, pubs, hostels and family stays. "What has changed is the distribution platform providing an accommodation owner the means to easily and seamlessly list and let their property (or properties) connect to guests. Airbnb is one of the most recognizable of these 'peer-to-peer' or 'rental-by-owner' companies, and its inventory continues to increase across the globe."