Since launching in 2008, Airbnb has taken the travel industry by storm. With more than 7 million listings in 100,000 cities, Airbnb has made its CEO and co-founder, Brian Chesky, a wealthy man; he is now worth a reported $4.2 billion, according to Forbes.
NB: This is an article from Oracle
However, not everyone is enthused by its rapid growth.
The popular home-sharing platform has come under increased scrutiny after receiving complaints from angry residents living in highly dense Airbnb areas. According to the Guardian, Airbnb has drastically affected urban life in multiple cities and rural regions around the world. Residential properties in peaceful communities have been turned into full-time holiday rentals, sitting vacant in off-peak seasons and attracting an abundance of holidaymakers throughout the rest of the year.
Despite rules and restrictions laid out by Airbnb, many residential buildings continue to be let illegally. In 2018 the BnbGuard discovered that 35 percent of Airbnb listings in Australia were from people who didn’t even own the properties, and the council in Barcelona revealed that half of vacation rentals had been rented without permission or the appropriate license.
Complaints from residents, upset hoteliers and landlords have prompted local governments to step in to further regulate vacation rentals.
So what’s changed for Airbnb rentals?
Restrictions vary across different countries dependent on their laws, but here are a few examples on how councils are cracking down on Airbnb with restrictions:
1. Capped number of rental days
Airbnb has been forced to restrict how many days hosts can rent properties throughout the year. For instance, the city council in LA passed a law that an accommodation can only be listed for 120 days a year. In some smaller cities, such as Amsterdam, restrictions are even tighter, permitting hosts to only rent homes for 30 days a year.
2. Ban on short-term lettings
In New York, there has been a complete ban on all short-term rentals on home-sharing sites, preventing landlords from renting out city apartments for less than a 30-night stay. According to Conde Nast Traveler, New York officials are even seeking to collect host data from Airbnb so they know who is listing rentals illegally.
3. New Licenses
In certain highly populated areas, hosts are now required to obtain a special license or permit to rent out their property. For instance, Airbnb hosts in Japan, under strict hotel and health and safety laws, need to register for permission with the government to obtain a ‘minpaku’ license. Nikkei reported that after this new law was passed 80 percent of listings in Japan were taken down, costing the company close to $10 million.
4. Big fines
Paris, one of Airbnb’s largest markets, is cracking down on Airbnb. Failure to register properties before listing, or renting homes more than 120 days a year will result in big fines, according to Skift. The Paris Mayor also announced plans to further restrict the home-sharing giant and fine Airbnb 12,500 Euros for every illegal listing on the site.
5. Complete bans
In smaller, more remote locations such as the Balearic Islands, there has been a complete ban on almost all rental homes after the island experienced a 40 percent increase in rental prices since 2013, according to Reuters.
Chesky, Airbnb’s co-founder and CEO, who has been working to overcome some of these issues stated: “We have to take more responsibility for the stuff on our platform.” During a conference in Manhattan, Chesky also announced that Airbnb will “conduct a comprehensive review of all properties listed on the platform.”
Another market shift in vacation rentals?
Airbnb originally gained popularity due to its lower pricing and a rise in demand for “authentic” travel experiences. However, after adding rising occupancy taxes and Airbnb’s guest service fee, Quartz has found that Airbnbs are not necessarily less expensive than hotels.
Coupling such findings with a recent report from Travel Market, which found that millennials prefer staying in hotels over Airbnb rentals because of its amenities and services, a case could be made that marketplace opportunities have resurfaced for hotels.
Regardless, there is a lesson to be learned for hoteliers: Create a travel experience that offers the best of both worlds, authenticity and convenience.
