NYC PRICES INNSANE
Hotel rates soar amid Airbnb cuts, asylum needs
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 and an influx of asylum-seekers — pushing hotel room rates to new heights.
According to Trivago’s Hotel Price Index, the average room is now going for $529 per night — up 17% 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% rise 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, the city’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 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.
Experts 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 in right now, which is resulting in less choice and higher prices,” Taylor Marr, housing market economist at Airbnb, told local news outlet The City.
“The impact is likely to grow after December and especially during peak travel nights, such as on New Year’s Eve,” Marr added.
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.
Rates fall in Jan.
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 start glowing at 5 a.m. sharp — when the Swarovski crystal star above the 80-foot Norwegian spruce switches on, followed by its 50,000 multicolor lights.
For reference, Trivago found that in January, after all the holiday buzz died down, the average nightly rate was just $261 — more than 102% less than the $529-per-night rate visitors are currently being charged.