Airbnb Growth Stronger Than Hotels
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Airbnb, the world’s largest online hospitality service, is currently making stronger gains than traditional tourism accommodation.
The Deloitte Tourism Hotels Market Outlook report provides an insight and analysis of current trends and issues that affect the Australian Tourism industry. It showed that “alternative” accommodation such as Airbnb has grown by 8.7% in the last year. Meanwhile, traditional accommodation, like hotels and apartments, grew by just 1.2%.
Airbnb is the world’s largest online hospitality service allowing home owners to list their properties online for travellers to rent during short-term stays.
With more than three million listings, Airbnb has become a key player in the accommodation industry since it began nine years ago.
Critics claim owners using the site do not declare income and thus avoid paying taxes.
Tourism Accommodation Australia has proclaimed it watching Airbnb’s activities closely.
Carol Giuseppi, CEO of TAA, told news.com.au, “In the majority of cases, it’s actually illegal short term accommodation; it doesn’t contribute to employment, taxes or the economy.
“Our members were very angry with Qantas’s decision to support Airbnb when our hotels have played such a crucial role supporting their frequent flyer program.”
Despite growing criticism from traditional accommodation providers, Airbnb has also received praise.
Airbnb’s Country Manager Sam McDonagh told news.com.au, “Airbnb hosts are everyday people earning a modest income that helps pay down their mortgage and cover bills.”
Airbnb host, Michael Audrain told ECU Daily he used the platform so he didn’t have to have a full time housemate.
“You meet great people from around the world who stay for short periods of time. It helps with the mortgage and bills, for sure. I guess the benefits are that you make that extra bit of money but you also make some friends along the way.”
Ian Haines, another Airbnb host in Albany, Western Australia, had used the service for four months and had become a fan.
“We had over 20 different bookings, and actually it has been pretty much on target with about 60 percent full,” he told news.com.au.
Carol Giuseppi said that most Airbnb providers were not licensed, did not meet safety guidelines, and did not pay taxes on income received from hosting.