@Maia29
Every accommodation will find its niche. the closest comparison and competition to hotels I would think would be those listings which accommodate 1 or 2 guests. I think thats the market which hotels want to attract and that market where the competition would be tighter. Hotels don't provide full kitchen facilities and a homely atmosphere.
Price is not the only competitive aspect. Larger hotels in our area are installing self-contained accommodation pods in their grounds aimed at up to two sharing. They include separate lounge and bedroom, no kitchen (they want their restaurant filled) and a hot tub in nice surroundings. For two, the cost is £415 per night. We accommodate 8 with a kitchen. Our base rate including the hot tub and a full kitchen would be £300'ish a night. Depending how you calculate your own Value For Money, we fare 5x better for VFM.
Weirdly, Hosts on Airbnb seem to compare their competitiveness to other hosts listings rather than like you have just suggested to local hotels. In my example, are we 5x better value for money or underpricing by 80% ?
Like for like... Are there many private 1 bedroom lodges on Airbnb with a Hot tub and no kitchen? No. There might be a 1 bedroom lodge with a Hot tub and with a kitchen but they won't be charging £415 a night. Why not?
Independent Home Share hosts offer fabulous value for money, and I believe we deserve better recognition for the service we provide and as a non-commercial venture and as a service to our guests, it is not unfair to ask that guests pay for us to clean up after them rather than charge them for not including a kitchen.
I can see that if you have low priced local hotel competition, or maybe if there are commercial self-catering options, then the cleaning fee might be difficult to justify, but, with everything headline costs are never the final fees and the benefits are never equal.