Airbnb CEO: New York City hotels will get more expensive after short-term rental crackdown
The head of Airbnb, the world's largest vacation rental platform, issued a warning to travelers considering a trip to New York City over the next year.
Hotels are likely to get more expensive following what the company describes as a "de facto ban" on Airbnb in the largest city in the U.S., Airbnb CEO said last week at the Skift Global Forum in New York City.
"I was always hopeful that New York City would lead the way and that we would find a solution in New York," Brian Chesky said. "Unfortunately, New York is no longer leading the way. It's probably a cautionary tale."
New York City represented most of Airbnb's business about 14 years ago. That's no longer the case, and Airbnb now has its largest footprint in Paris. The company estimates its Parisian presence will grow even larger in the run-up to next year's Summer Olympics in the French capital.
Back in the U.S., it doesn't appear the company is getting as much of a welcome from various city governments. The New York City restriction on Airbnb limits stays to two guests and requires the host to be present in the rental for stays shorter than 30 days. The measure is believed to have eliminated as many as 15,000 — or about 70% — of Airbnb's listings in New York City, Wired reported using data from housing advocacy group Inside Airbnb.
That's bad news for travelers, per Chesky.
"I think the consequence of this is going to be that next year hotel rates will be more expensive, and the reason why is we're not going to be building 20,000 more hotel rooms," he added. "So, it's going to be more expensive to stay in New York, and I think that's unfortunate."
It's too early to determine if the Airbnb restrictions are the main culprit of higher hotel rates in New York City. While the city has seen rate surges in the weeks following the loss of so many listings, hotel data provider STR chalks this up to events in the city like New York Fashion Week, the U.S. Open and the United Nations General Assembly.
Airbnb vs. hotels
Regarding the Airbnb crackdown in New York City, Chesky didn't fully point the finger at the hotel industry. But he did indicate he felt there was some involvement by its lobbying groups.
"I'm not an expert on that, and obviously they wouldn't tell me how much and how involved they were," he said. "I think that they were absolutely, you know, at the table."
But Chesky, like Hilton CEO Christopher Nassetta earlier in the week, indicated there's a difference in clientele and travel purpose at Airbnb compared to hotels.
Roughly half the nights booked off Airbnb are for stays longer than a week, and 80% of stays booked on the platform entail more than two guests traveling together, Chesky said. Travel styles like that are more conducive for a stay at a vacation home rental, the thinking goes.
"I never felt like for Airbnb to win, hotels had to lose," Chesky said.
But it is clear hotel companies feel a need to compete in some form or fashion in Airbnb's lane.
Hyatt announced a new vacation rental platform, Homes & Hideaways by World of Hyatt, the same day Chesky was speaking. That offering follows similar moves by Marriott, Mandarin Oriental and Accor in the last several years. Further, IHG is even offering 10,000 IHG One Rewards points to travelers who can prove their New York City Airbnb reservation was canceled in light of the new city policy.
"There is overlap. I'm not going to pretend there isn't," Chesky said. "But I do want to say there's less overlap than anyone realizes, and Airbnb allowed a whole bunch of people to travel that weren't traveling."
Airbnb's policy toward junk fees
Chesky highlighted how the company is moving to better disclose added fees like cleaning and service charges that make listings a lot more expensive at checkout than when you first search for a place to stay.
There is now a toggle over search results where a traveler can push to have listings show pricing totals incorporate everything charged short of taxes. The price inclusion isn't as default as it is with Marriott and Hyatt following their own respective criticism (and legal battle) over resort fees and so-called drip pricing. However, Chesky said the Airbnb website will remember you previously had the toggle on and keep that permanent for future searches.
Like what Hilton's Nassetta said last week, Chesky indicated support for transparent pricing — as long as everyone is doing it. This way, customers won't get the impression they're finding a better deal if they book off a third-party website that doesn't include all charges upfront.
"We want people to know that our prices are being shown differently than the competitors, but there may be a scenario down the road where there will be regulation," Chesky said. "If there's regulation, then it's a level playing field. But at this point, it's not."
Risk of overhyped AI
It's hard to go anywhere these days without hearing business leaders talk about the transformative impact artificial intelligence will have on the workplace and travel experience. Add Chesky to the camp of leaders who think it will still take some time to fully integrate into the travel experience.
The Airbnb leader indicated there isn't likely to be a massive shift in how travel operates in the next 12 months due to AI. Sure, it can help with customer service efficiency and things of that nature, but there are areas of opportunity — like with a digital concierge or destination matchmaker — that could enhance the booking process at Airbnb.
Chesky did offer another warning during his chat regarding a potential overhype of AI.
"I just want to remind people that we have to be careful about a fetishization of AI [and] of every new technology," he said. "A new technology comes around and then a whole bunch of people use a bunch of buzzwords … and they quickly launch these new gimmicks. We've never wanted to be one of those companies that launch AI gimmicks."
"It's going to take some time for AI to truly change travel and be great," he said.
Related reading:
- Best hotel credit cards
- When is the best time to book a hotel? Experts weigh in — and debunk a few myths
- The best credit cards to reach elite status
- A comparison of luxury hotel programs from credit card issuers
- Which credit cards offer the most lucrative rewards for hotel stays?
- The best hotel rewards programs in the world
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees