Airbnb to increase focus on business travellers as it faces scrutiny in NSW Parliament
THE game-changing website has already won over holiday-makers. Now it’s aiming to persuade business travellers to ditch five-star hotels for funky homes.
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IT’S changed the face of travel and, by some estimates, has cornered half the market for short-term rentals in holiday towns. Now Airbnb has the lucrative corporate market in its sights with ambitious plans to become the number one choice for business travellers.
But suits looking to sample Airbnb won’t be crashing in the spare room. Rather, luxurious inner Sydney warehouse conversions and elegant Melbourne town houses are the order of the day.
Airbnb’s move into the business market comes with the website facing intense scrutiny as it fronts up to a NSW Government inquiry into the regulation of the short-term holiday letting industry. While the inquiry isn’t so rude to name the company, it is widely seen as being a reaction to Airbnb’s increasing popularity and the Government’s struggle to regulate the so-called “sharing economy”.
On Monday, the company has called for individuals to be able to rent out their homes to visitors as they see fit. But those pushing against the Airbnb bandwagon have said safety regulations fall well short of hotels, neighbourhoods are being overrun with travellers and — far from being a bit of cash on the side for homeowners — landlords letting out multiple properties online are benefiting most.
A HIGHER STANDARD
According to a report by Boston University, in the US city of Austin properties listed on Airbnb have captured up to 10 per cent of the hotel market. In a submission to the NSW inquiry, Byron Shire Council says the number of properties available for short term rental in Byron Bay has doubled since Airbnb, and similar websites, exploded on to the scene.
However, one corner of the market Airbnb has yet to make significant gains into is the corporate market with business people preferring dependable chains over a quirky pied-à-terre. But Airbnb for business looks to change that.
“Businesses have clearly been longing for a better way to manage their employees’ travel needs and business travellers seem eager for change from traditional travel accommodation,” Airbnb’s Director of Public Policy, Mike Orgill told news.com.au.
Homes for corporate clients have to include Wi-Fi, fully stocked kitchens and nearby parking is an attraction. Payment can be made through company’s existing systems and the residences have to be of a higher standard — a doona tossed on the sofa in a student share house won’t cut the mustard.
Blue chips like Google, Goldman Sachs and Morgan Stanley now offer their staff Airbnb lets alongside the usual Hiltons and Novotels. Airbnb claims they are 30 per cent cheaper than traditional hotels and people are sticking around longer.
“More and more business travellers are staying the weekend, mixing business with pleasure, and getting to know a new city or neighbourhood they’ve perhaps never previously visited,” said Mr Orgill.
‘WE BOUGHT A HOME, NOT A BOARDING HOUSE’
But while Airbnb tries to win over people at the top end of the market, it’s at the other end that they are having to put out fires.
The inquiry has heard from neighbours complaining of sleepless nights caused by short-term rental tenants, councils have been urged to designate areas no-Airbnb zones, while there are proposals to only allow rentals over an extended number of weeks, blocking much of Airbnb’s business.
“We purchased a home, not an apartment in a hotel, motel, or boarding house,” said one anonymous submission to the inquiry, furious about the property next door being listed on Airbnb. The company says it places “great emphasis on responsible hosting” and expects high standard from its guests.
The most common concern though is confusion. Depending on where the Airbnb property is, one council might embrace it while another could try and shut it down.
“It would be useful to get some state wide consistency and useful not to have a myriad of different rules and that’s where this inquiry is really important,” said Mr Orgill who points to France, London and Philadelphia as models where local residents can let out their homes at will, without specific planning consent.
Laws in Australia were lagging the reality of what was happening on the ground, he said. “Governments can’t be expected to move at the same pace as business and that’s probably the case everywhere this activity has taken off but what excites me is NSW is taking this on and it’s the first place in Australia to look at this.”
The company says the number of listings in Australia has topped 70,000 and highlights many of its properties are outside of “traditional tourist neighbourhoods.”
Indeed, Airbnb does spread to many areas where hotels are few and far between but according to data from Inside Airbnb — which bills itself as an information website for residents and councils — half of Sydney’s listings are in just three council areas — Sydney City covering the CBD as well as Randwick and Waverley close to the famous beaches of Bondi and Coogee.
NOT HOSTILE
Inside Airbnb creator, Murray Cox, also said in his submission that the large number of whole homes being advertised “should alarm any city” as it could lure landlords into favouring tourists over longer-term tenants who need it most.
Mr Cox also said those using Airbnb were not simply homeowners filling their home while they are away themselves but increasingly ambitious landlords letting out multiple properties. They’re claims Airbnb reject who say while there may be multiple listings by the same user these could be for the same property. Or people with commercial properties, such as hostel owners, could be advertising through the website.
Perhaps mindful of the perception that holiday towns were being overrun by Airbnb and landlords were exploiting the website, Mr Orgill says the legislation should be loosened primarily for people’s main homes. “Everybody should be able to rent out their principal place of residence but with holiday homes local communities should be able to make determinations.”
But he stops short of suggesting second homes should be excluded entirely from Airbnb.
Mr Orgill also pushes back against those who say Airbnb hosts should be forced to install the same level of fire and safety features as in hotels. In fact, it was unfair to apply the same standard to a 100-room hotel to a spare room, he says.
“If it’s safe enough for a NSW resident to live there it should be safe enough for a guest. If you want a friend to stay with you there’s no expectation from the state you put in fire doors and green neon signs,” he says. “These buildings are fundamentally meeting required safety standards.”
While other sharing economy businesses such as Uber have been accused of arrogance, Mr Orgill said that wasn’t Airbnb’s aim.
“We’re not hostile. We see this as working in partnership and everyone looking at the issues and talking them through.”
Originally published as Airbnb to increase focus on business travellers as it faces scrutiny in NSW Parliament
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