Holiday travelers flooding into New York have no other option than to book a hotel room following the city’s clampdown on Airbnb this fall — pushing hotel room rates to new heights.
According to Trivago’s Hotel Price Index, the average room is currently going for $529 per night — up nearly 20% from November, when the average nightly rate was $452 as tourists flocked into town for the Macy’s Thanksgiving Day Parade.
The figure also marks a roughly 8% advance from last December, when nightly rates averaged $490, according to Trivago.
Prices in December notoriously surge as visitors set their sights on seasonal stops like the glittering Rockefeller Center Christmas tree and the nearby Saks Fifth Avenue window displays.
However, NYC’s Airbnb clampdown — known as Local Law 18 — took effect in September, limiting rentals to two guests and reservations to more than 30 days unless it’s registered with the city.
The new rule also bans separate apartments or living quarters for short-term stays in both apartment buildings and private homes, imposing stiff penalties of up to $5,000 per violation.
Airbnb has seen its listings plunge more than 75% since the rule went into effect, eliminating a key competitor for the hotel industry.
The short-term rental company has been attributed for keeping hotel rates in check, offering additional rooms during peak periods, when accommodations become scarce.
Meanwhile, more tourists than ever are descending on the Big Apple.
Local tourism bureau NYC Tourism & Conventions forecast that New York City will welcome over 63.3 million sightseers by the end of the year — a 12% increase from last year.
The influx has locals and tourists alike waking up before sunrise to visit the most popular sites, like Rockefeller Center, which is usually thronged with selfie-seekers.
Just this week, a handful of people braced the 35-degree weather and gathered at Rock Center as early as 4:45 a.m. for the chance to nab a crowd-less picture and watch the famed Christmas tree spring to life at 5 a.m. sharp — when the Swarovski crystal star above the 80-foot Norwegian spruce bursts to life, followed by its 50,000 multicolor lights.
Local news outlet The City also attributed increased room rates to asylum seekers, who are currently occupying more than 10,000 lower-cost rooms.
“Visitors to New York City have thousands of fewer rooms to stay right now, which is resulting in less choice and higher prices,” Taylor Marr, housing market economist at Airbnb, told the site.
“The impact is likely to grow after December and especially during peak travel nights, such as on New Year’s Eve,” Marr added.
For reference, trivago found that in January, after all the holiday buzz died down, the average nightly rate was just $261 — a staggering more than 102% less than the $529-per-night rate visitors are currently dishing out.
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