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As well as
impacting
mainstream
hotels, Airbnb
and other
intermediaries
have also
become a
disruptor
to the wider
residential
market
This impact of Airbnb is also
diversifying across market segments.
Alongside leisure travellers (upsold
with tours and excursions by ‘Airbnb
Trips’), Airbnb is now also directly
targeting the business and the luxury
travel markets. The partnership with
the corporate travel portal Concur
will allow users to compare Airbnb
properties directly with hotels. The
pilot project, unofficially referred to as
‘Select’, will allow Airbnb to address
older and wealthier travellers still
preferring the amenities that come
with upscale and luxury hotels.
Traditional operators cannot
ignore the disruption and many
are taking stock of their positions.
As a result of a cited ‘material
change’ in their circumstances, hotel
operators, supported by the British
Hospitality Association, are likely to
appeal against the higher business
rates proposed in the April 2017
revaluation. In some cases rates
payable will more than double. The
argument for material change has
greatest weight in Westminster, Tower
Hamlets, Kensington & Chelsea and
Hackney, which collectively account
for almost 50% of all Airbnb bookings
in the UK in 2016.
Lack of regulation is becoming
an increasing concern not only for
hoteliers but also for local authorities
and many private landlords,
although things are starting to
change. From early 2017, Airbnb’s
systems automatically limit entire
home listings in Greater London to
90 nights per calendar year unless
users submit an Exemption Form to
share their space more frequently.
However, the 90-day limit is difficult
to police and the associated tax
advantages deliver around one third
of the savings that Airbnb offers
to its customers. This is without
even considering the alternative
home-sharing platforms. In addition,
inspections to check hotel-standard
fire protections are far less common
than for traditional B&Bs and hotels.
As well as impacting mainstream
hotels, Airbnb and other
intermediaries have also become a
disruptor to the wider residential
market. Last March, Sadiq Khan
warned that the rise of short-term
rentals risks reducing the number
of homes available for permanent
residents, albeit demand in the long-
let market has softened since Brexit.
This, together with the recent cuts
in tax breaks on mortgage-interest
payments and the growing pressure
25Hours Hotel Hamburg
CUSHMAN & WAKEFIELD
18
TOURISM