How to win a trip to Paris with a hotel booking

  • September 26, 2021

A luxury travel magazine has warned that the popularity of luxury hotel booking apps such as TripAdvisor could be driving up the price of hotel rooms.

The Los Angeles Times reported on Wednesday that booking services such as Airbnb, Hipmunk, and Luxury Hosting, which are all owned by luxury travel companies, are driving up hotel prices by as much as 80 per cent.

The newspaper reported that hotel prices in the United States have jumped by nearly $60bn since the start of the year.

The US travel industry has been reeling from a drop in demand from the likes of China, Brazil, and India as the world’s second-biggest economy grapples with the Zika virus outbreak.

However, the rise in luxury travel prices has come with the potential to boost the profits of luxury hotels and airlines, as they can charge more for booking hotels and rooms.

“I think we are witnessing the start to a trend of luxury travel in which more people are taking advantage of the availability of booking services, like Airbnb and Hipmunks,” David Saks, managing director at Luxury Traveler, told the Times.

“Airbnb is also a major player.

It is a lot easier to get guests to come to your location, especially if they are in a very nice area, because there are so many Airbnb listings in this country.”

Mr Saks said that the growth in Airbnb listings could have an impact on hotel prices as guests are booking their rooms on the app instead of booking them on a hotel.

Airbnb has already started increasing its own booking fees in order to offset the higher costs of booking rooms.

But it is not just Airbnb that has begun to push up the cost of hotel accommodation.

Mr Saps said that his own business, Saks Management Services, had already had a 50 per cent increase in the cost it charges its clients to book rooms at its properties in Dallas, Las Vegas, and Los Angeles.

He said that, while the increased booking fees did not cause the hotel to have to increase rooms or increase prices, they could have “a major impact on how much a hotel charges its guests”.

“I do believe that the hotel could go into a panic,” Mr Saks told the newspaper.

“If you think about it, Airbnb is a very popular platform.

If there is a surge in demand for hotel rooms, and if you are seeing a rise in the prices of hotel booking services you can see the hotel having to raise prices.”

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