Airbnb's struggles go beyond people spending less. It's losing some travelers to hotels.
Airbnb's struggles go beyond people spending less. It's losing some travelers to hotels.
Airbnb stock tumbled after the company predicted slowing demand. Some Airbnb fans say they now favor hotels' consistency and cost-effectiveness.
- Airbnb stock tumbled 14% in one day after the company predicted slowing demand.
- Some former Airbnb diehards say they now prefer the consistency of hotels.
- Airbnb said it might increase travelers' ability to book hotel rooms through Airbnb.
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I stopped using air bnb. I use to use them for more obscure places that didn’t have hotels. I don’t like they take homes out of the market. I get for vacation areas this is less of an issue but for places like ny city, San Francisco, etc it’s taking homes out of use.
I hate the cleaning fee. It’s become obscene.
Just everything about the model bothers me now.
I get for vacation areas this is less of an issue
Nope, this is the issue for housing in small towns/touristy areas. Most of the housing stock in our town has been scooped up for Airbnb/VRBO/etc, and has 1) limited housing stock for locals, 2) has raised housing purchase prices to unaffordable levels because of "profit potential", and 3) limited availability of long term rentals that has also shot rental rates through the roof. In small towns, housing is already limited by geography, and so it just exacerbates an existing problem and completely screws local who likely don't make a lot to begin with, because generally tourism and tourism-adjacent industries makes up the bulk of the available jobs.
Here's a case study on exactly this if anyone is interested and you don't mind the slightly unusual article format.
Just everything about the model bothers me now.
As it should.
The original model I liked. You have an adu? Rent it for spare cash. Rent a spare room. Etc. it didn’t impact supply and let a lot of people earn a little cash. It wasn’t a business. It was an accessory. Now it’s a business.
The thing is, it was never the original model. It was what was marketed at us. The model was always dumping to monopolize the market. Perhaps the original software nerds didn't have that in mind but the moment MBAs came along to "help them grow" the program was to win Monopoly in that market. And that was very early on since VCs were involved nearly from the get go in most of those cases. The original idea as you describe it ends at the singing of the VC contract.
PS: Software nerd myself that used to drink the Koolaid, now a very senior, jaded software nerd.
The founder literally started it because he found it difficult to rent out his vacation home. Fuck him and his vacation home.
It was the model for a very long time. It was all about renting excess capacity. It was a brilliant move. It wasn’t till much more recently people turned it into a business by buying properties just to air bnb.
Not sure when do you refer as recently but where I am this has been a common practice since at least 2015.
Don't get me wrong, if you wanted to make a spare rooms rental system, nonprofit or otherwise, you could. But if you wanted to do that you would put restrictions and hoops to jump in order to limit rental to spare rooms only and maybe you wouldn't charge 17% in fees.
2013 for me.
Perhaps the original software nerds didn't have that in mind but the moment MBAs came along to "help them grow" the program was to win Monopoly in that mark
So….. it was the original model. And yeah airbnb literally grew because of renting out extra rooms, it didn’t grow from turning entire homes into rentals. It became that much much much later.
I get for vacation areas this is less of an issue but for places like ny city, San Francisco, etc it’s taking homes out of use.
It's every bit as big of an issue for vacation areas / areas where tourism is the primary driver of the economy.
Take Tahoe or Mammoth Lakes for example: until the early 2010s it was still possible to move there without knowing anyone or having any other inside track, get a job (not your favorite or first choice, usually, but something to work from while you get established) and find your crappy first apartment or half-a-cabin or rundown shack or basement or ADU to rent.
That scenario is almost completely gone now and has been for ten years, plus or minus -- depending on where each person sees the line that divides difficult from impossible. People making far less than a living wage now commute to both of those areas from an hour or more away. The sense of how "connected" or privileged one has to be to make it or even just scrape by in areas such as these has relentlessly risen to a level that has had an enormous impact on mental and emotional health and life outcomes in these areas too.
All of these factors were already big in the negative column balancing the very real positives of living so close to nature and preferred sporting activities, before the rise of the short term rental blight. But nowadays those negatives are practically off the meter.
I'm not sure you can blame short term rentals for this happening in desirable vacation spots worldwide. People have become much more mobile, and a decade of very cheap interest rates mean that there is no more "run down cheap cabin in the woods" any more. Even for owners who have owned those properties for many years, insurance costs and taxes have spike along with the housing costs.
I own a home in a very expensive area with extremely limited geography that prevents additional development, but also has in place a practical ban on short term rentals- 28 day minimum. This has not led to more affordable housing, but rather a lot of empty vacation homes owned by very wealthy people and $700/night hotel rooms. Also, locals being pushed out due to spiralling insurance and property tax increases. All without short term rental being a factor.