Peruvian travel agency Ampatua Travel says it lost about $10 million in its third quarter of operation.
The company had already reported a loss of $1.1 million in the first quarter.
That is more than twice as much as the previous quarter.
Ampatu is the largest hotel operator in the country.
Ampatua has been hit by the rising popularity of Airbnb, which allows guests to rent rooms and share rooms on a single platform.
“With Airbnb, people are able to rent a room and then rent a car and they can rent a restaurant,” Ampatueas director of marketing and brand management Ana Alvarado told Al Jazeera.
“[With hotels] it’s all booked online and you can book up to four people at the same time.
That’s very different from the experience you have with Airbnb.”
Ampitu’s losses are due to Airbnb’s use of hotel rooms that have been booked out by guests, Alvarados said.
The company is also facing a decline in guest numbers in Peru, she said.
“Our client base is shrinking every day and it’s affecting our business.”
Airbnb is the latest in a long line of companies that have experienced financial setbacks in the last few years.
Last year, a Spanish hotel chain called El Pais said it would close its operations in Peru after a lack of visitors.
Airbnb said it had not yet received any formal threat.
In June, a French hotel chain said it was closing its hotel in Peru and was suspending all business.
Airbnb declined to comment on those reports.