Except that that is adding supply that didn't exist before - before AirBnB was popular, there was no reliable way to exploit it. And while AirBnB is competition, it's not the same thing as a hotel room.

My point is that I don't think there's anything nefarious going on. Demand is high, so the hotels raise their rates. And the high demand is predictable because it's due to a scheduled event. Presumably, the existence of AirBnB will cause the rates to go down somewhat.