Dark Days Ahead!

Robin4
Level 10
Mount Barker, Australia

Dark Days Ahead!

I think there are dark days ahead for hosting sites like Airbnb, Homeaway, Stayz, Flipkey, Holiday lettings and Trip advisor.

Up until recently, tourism authorities and local governments virtually turned a blind eye to home hosting sites! They were regarded as a ‘curio’…. A fad if you like, that would run its course and slowly ebb back into obscurity. Some of them even saw it as positive because it would increase tourism!

Instead of that the whole hosting industry is growing at such a rate that it is now seriously hurting the traditional hospitality and tourism industry……And thanks to gaming they have a massive pot of money available to push for change!

Now, in this country (Australia) Tourism Australia are joining forces with the AHA (Aust Hotels Association) to seriously lobby governments to put pressure on the whole concept of home hosting. And I think we are probably lagging behind other countries. Some local juristictions are prohibiting the offering or selling of prepared food to guests. Hong Kong now requires anyone hosting individual guests for less than 28 days to be licenced and I believe the same is happening in Quebec in Canada…..it’s only a matter of time before the rest of the world follows suit!! And when that happens the number of host will fall through the floor….it just won’t be worth it!

 

Now maybe something is afoot, but utter silence is all I have had. What has Airbnb’s reaction to this inevitable challenge to individual hosts…..Zippo…Zilch….Goose egg as Judge Judy would say! All we see is handsome people laughing together to a backdrop of some exotic location. They appear to be ‘sitting on their hands’. If they are doing anything it seems what they are doing is a bit like that little Dutch boy putting his fingers in the holes in the **bleep** trying to hold the North Sea back!!

I could see this coming some time back, and I suggested that Airbnb get pro-active and at least sight local government compliance for a hosted space prior to listing! You have to be ready to fight these inevitable challenges and put forward a compliant legitimate face, if you want to be seen as a compliant legitimate industry!  But I was politely told that was impossible, it’s like EBay and it will be treated the same as EBay… It's simply puting A in touch with B and the issues would go away.

Well, they won’t, it’s too big now….What’s that old saying …’An ounce of prevention is better than a pound of cure’!

Time is running out for that ounce of prevention, in fact it probably has run out!

I would like a serious statement from Airbnb as to where they are headed with this….not some Lillie-livered stance like, ’It’s up to you hosts to fight your own battles’.  A lot of people have invested a lot of money going down this path on the assurances from Airbnb that this was a desirable, safe and reliable way to make ‘a bit on the side’!!

As I said in another post…..what about it Airbnb…."Where do we go from here"?   Cheers….Rob

11 Replies 11
David-and-Fiona0
Level 10
Panglao, Philippines

As a tourism consultant (and a host) I agree with a lot of what you say but I don't agree with the doom and gloom prognosis. Other 'sharing economy' operations (Uber etc) have had to deal with changes in legislation and so will AirBnb. AirBnb will (as they have previously done) work in conjunction with government legislation to legitimise the servce. In some countries they will be put under pressure but most developed countries will accommodate this new form of business model. 

Gerry-And-Rashid0
Level 10
London, United Kingdom

New business models challenge the existing and work in an enviorment that is not fully regulated in terms of their offer - similar to UBER, and even Facebook - it means laws/regulations adjust to those new models over time. Sure the existing operators will shout and scream, but in general countries tend to come down on the side of the consumer. It may mean some resctrictions - but there are restrictions in most types of business models.

Deborah0
Level 10
California, United States

Hi @Robin4

 

Yes, there are changes on the horizon as Airbnb hosting expands across the globe -- and pushes for regulation invariably follow -- but it is not necessarily all bad news.  Many cities are developing reasonable regulations on home sharing, and Airbnb is very active in many areas to help cities make this happen.  See these articles for instance on how Airbnb is working with cities to try to encourage them to develop regulations favorable to home sharing:

 

Airbnb Takes Pitch to US Mayors

 

Airbnb to Cities: Cooperate and You'll get Tax Revenue

 

Cities can be convinced to permit home sharing, if not because it is the right thing to do, then perhaps because doing this can bring them millions of dollars in tax revenue.  Chris Lehane with Airbnb is working to start up 100 "Home Sharing Clubs" across the US, to work with cities to advocate for fair and reasonable home sharing regulations in cities across the USA.  See info on that here: 

 

Airbnb to set up Short Term Rental Clubs in 100 cities

 

Cities such as Portland, OR, Austin TX, San Francisco, CA, have passed laws which allow home sharing, (and some cities like New York City allow hosted forms of home sharing without having passed regulations on it) and many other cities including Denver, Seattle, Sacramento, New Orleans, Oklahoma City, Raleigh NC, Louisville KY, cities in Florida, are studying short term rental regulations or will soon pass them.  See this list of various short term rental regulations in a number of California cities, for instance: 

 

Short Term Rental Regulations in Several California Cities

 

Peter Kwan founded  Home Sharers  organization in San Francisco to help hosts in that city and others work with cities to develop fair regulations on home sharing.  Home Sharers Organization is hoping to form Home Sharers chapters in cities around the world to help share with other hosts the various strategies and methods that can be used in cities to advocate for host's interests in obtaining good regulations.  

 

WHile some cities unfortunately enact bans on short term rentals or make doing STR's (short term rental =- STR) rather difficult, this does not seem to be the norm, at least in the US.  More cities do seem oriented to passing fair and reasonable regulations on home sharing.  

 

See this board which covers regulatory issues in many parts of the world, to learn more: 

 

Regional Short Term Rental Regulations in Many Areas of the World

 

I'm a Chicago host and we recently had to put all our listings on 30 day minimums due to the fact that hosts in Chicago have been fined quite a lot of money (thousands).

 

The problem here is that regulations were written pre-home-sharing, and we as hosts need a license for either vacation rentals or Bed and Breakfast, which most hosts would gladly do, but the regulations and zoning are so very narrow that we can't fit ourselves into them.

 

At a city council meeting this month, the mayor proposed a new regulation which not only includes huge fines (1500-3000/day) but also possibly six months of jail time for uncompliant hosts, that is, hosts who don't have a license and registration for short term rentals (which requires we fit ourselves into the old paradigm). I had hoped that any action on this front would be to write new, more reasonable regulations that were inclusive to the majority of hosts, but they went the other way, in spite of the fact that the city and state are both collecting taxes from guests and hosts.

 

Airbnb is simply refusing to turn over all their records, in order to protect host's privacy, but that is all I really see them doing at the moment to protect hosts. The city has been very loud on the issue. Airbnb has been very quiet.

Deborah0
Level 10
California, United States

@Inanna0

 

I think that's really horrible what is happening in Chicago.  To crucify Airbnb hosts like that.  So many other cities are taking a reasonable approach to short term rentals, so to see a large city like Chicago be so backwards on the issue, is upsetting.  Jail time for hosts? Seriously? ??!!

Airbnb does have a Public Policy team that goes out and works with cities to try to get them to draft fair regulations -- I'm surprised that Airbnb wasnt' more involved in Chicago, since Chicago is a such a large city, and would be pivotal in terms of the effect on other midwestern cities with the direction it went on this issue.    Do you know, was there a group of hosts in Chicago who were working on this issue in Chicago?  OFten Airbnb will work with a group of hosts to help them advocate politically. There was a huge effort for instance in San Francisco, on the part of Airbnb, to try to get good regulations in SF.  

@BretHoekema posted this link https://act.airbnbaction.com/page/s/chicago-signup

 

Right, it is pretty scary. The fines are so high they could not only prevent hosts from being able to come into compliance, but also, completely wipe them out financially, not even taking into account losses from legal fees or jail time. 

 

I am not sure that most Chicago hosts know what is going on, as when we began participating in city and state taxes, we all kind of breathed a sigh of relief, feeling we were now gaining legitimacy. I just happened to do a search to see where we stood, as I do every few months, and was shocked. 

 

My my listings are affordable housing for students- basically, a safer way for them to travel than Craigslist or Couchsurfing, but far cheaper than even youth hostels, so, given our price range, there is simply no way we can get an attorney, petition for zoning, ect. Perhaps by banning together with Airbnb Action that can change, but (given the new format we have to communicate) not many hosts seem to know what is going on. With the old forums, there was a Chicago group. 

 

I really do feel like we've been knocked out of the game. Jail time, while just being a threat, is not something I am willing to flirt with.

 

Airbnb just had me sign a new agreement that they would turn over all records of addresses, phone numbers, etc. of ME and my guests. This came in May. It is a HOT issue here in Ojai and I'm actually a renter trying to supplement my high rent. If I can't host, I'll be priced out of my home (of 7 years). As far as I can tell, Airbnb has done nothing to be proactive on this issue and has made a lot of money off hosts. My college son had a friend that was offered an internship to lobby on behalf of Airbnb wanting to turn large apartment buildings into hosting spots. It appears they have set their sites beyond us small hosts. 

Thanks for the links, Deborah!

Deb0
Level 9
Mendocino, CA

Get involved people! I recently put my name into an election to represent "Small Lodging Operators" on our County Tourism Commission. I wrote a a platform that was pro Airbnb and was actually elected. If we don't become the deciders, we probably won't like the decisions. 

Robin4
Level 10
Mount Barker, Australia

@Deb0   Thank you Deb,   this and what is needed, a po-active face....Sure, we occasionally come across what @Deborah0 has alluded to (and that is a little bit heartening) but in general that's a bit...as I said, the little dutch boy at the Levee trying to keep that water back!  Horror stories like that of @Inanna0s  and Susan's and a dozen or so other posts are becoming more frequent.....not less, because we are starting to hurt powerful people!

 

Yes I am somewhat of a prophet of doom but, I am doing this to play 'devils advocate'! I love this industry, I love being a host. I love being able to share a laugh and a drink or two with people I never knew 24 hours before, and I don't want to see it regulated into extinction.

I want Airbnb to be seen to be seen.....not just backroom chats here and there....cheers....Rob

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