LogFAQs > #897494998

They often charge a far superior experience (to me) than a hotel.

To you yeah, but your preferences may not be universal.

AirBnB has two real value propositions, both of which tend to be at the extremes of quality of accommodation. There's the "crash on the couch for no money" end of things, for people who are super value conscious and have no real concerns about quality (or privacy). And there's also the "rent out a big place for a party" end of things where it probably is cheaper than a hotel, because hotels are not really optimized for "multi-room" units.

But if you're looking for a completely private room to yourself of reasonable quality at a good location, that's already the exact problem hotels are solving for and, as I said, that market is unbelievably efficient. Some random Joe is unlikely to be better at providing that particular service than Hilton is...

The main reason they charge less is because it's pure opportunity profit. They are paying for the room anyways, whatever they can rent it for it is just free money.

Uh, this is also totally true of hotel rooms. Hotel rooms are perishable goods. Any night they go unoccupied, the hotel is earning no money. They are totally incentivized to price such that most rooms are occupied on most nights.
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SmartMuffin - Because anything less would be uncivilized - http://i.imgur.com/W66HUUy.jpg
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