> In recent years, the majority of AirBnBs I've stayed at feel like someone's side business that they started for "passive income" after reading some self-help books online.
Airbnb encourages this, as it increases inventory for them and lets property owners engage in a race to the bottom on prices. Which as it turns out, affects the quality of the service!
Honestly somehow prices have just gone to a race to the top versus the bottom. If every time you march prices up it takes a week longer relative to the rest of the market to book that room, and you and the rest of the airbnb property owners don't necessarily mind waiting an extra week if it means you just hiked up prices, then prices are just going to keep going up and up so long as people keep coming. And they will keep coming, because as you are losing out your middle class tourists, you are gaining wealthy tourists, who are funding more luxury development and snowballing the effect until they are priced out for even more wealthy people.
Airbnb encourages this, as it increases inventory for them and lets property owners engage in a race to the bottom on prices. Which as it turns out, affects the quality of the service!