Hotel Industry Calls Airbnb Properties “Illegal Hotels” that Need Regulation
by Cheryl Rosen /Airbnb renters in large cities are actually large organizations and not “home sharers,” and as such should fall under government regulation, according to a new study from the American Hotel & Lodging Association (AH&LA).
“From Air Mattresses to Unregulated Business: An Analysis of the Other Side of Airbnb” found that nearly 30% ($378 million) of Airbnb’s revenue in 12 of the United States' largest markets over a recent 13-month period came from multi-unit, full-time operators who offer rentals 360 days a year. Each operator averaged more than $140,000 in revenue during the period.
While Airbnb claims that “a typical listing earns $5,110 a year, and is typically shared less than four nights per month,” the reality is that the top 7% of operators brought in $325 million in revenue.
“This is not about ‘home sharing,’ a practice that has existed for decades as a way for individuals to make a little extra cash,” said AH&LA President and Chief Executive Officer Katherine Lugar. “As a corporation valued at more than US$25 billion, they have a responsibility to protect their guests and communities; they should not be enabling the corporate landlords who are clearly using their platform to run illegal hotels.”
Pic: Raysonho @ Open Grid Scheduler / Grid Engine