Report about Airbnb
Airbnb is one of the companies offering the private accommodation rental services. Folger (2016) reports that this service offers a platform through people with accommodation space that can be rented out and people looking for accommodation can meet. The people with accommodation to rent out start by listing the availability of the rental space on the website of Airbnb.
The Airbnb does not levy any charges for the owners of the rental space who publish the availability of space on the company’s website. In addition to including a description of the space to be rented, the owners are also required to include information on their charges for space through various units of time such as days, weeks or months. The service also allows the owners to promote their properties by allowing them to create their personal profiles to allow potential renters information on the kind of hosts with whom they will deal, photographs of the rental space and other inventive ways.
Travelers in need of accommodation space then search the database for accommodation space that best meets their needs. The primary approach is through inputting details on the place of travel and the prospective time so as to check the properties that are available at the time. However, the travelers are also able to refine their search by making specific selections using elements such as the type of room, characteristics of the host such as their language, the amenities that various accommodation spaces offer, and the size of the property among other criteria.
Once a traveler has found their preferred accommodation on the database, they then place a reservation by paying through various secure payment options provided. Part of the payment is a service charge which is determined at between 6% and 12%. This charge is separate from the fee for the reservation of the accommodation (Folger, 2016). The reservation fees are not effected until after the property owner has confirmed the availability of the rental space and the subsequent reservation. The payments are not released to the property owners until a day after the traveler has checked in into the accommodation. The property owners are also subject to a charge of 3% for the transactions that are processed on their behalf (Folger, 2016). Other charges that the property owner or the traveler might incur include the value added tax (Folger, 2016).
Advantages of Private Accommodation Rental Services
An advantage of the private accommodation rental services from the property owners’ perspective is the opportunity for increase income (Folger, 2016). Pascale & Tommaso (2015) find that Airbnb has many properties in Paris that are listed in its database. The number ranges between three hundred and eighty and four hundred properties. The rates at which these properties are offered to the travelers are upscale of seven hundred and fifty dollars for travelers renting the property for one night. This is an injection of income for the property owner.
Disadvantages of Private Accommodation Rental Services
One of the disadvantages of private accommodation rental services such as Airbnb, especially for the property owners is the prospect of vandalism and damage to their property. There have been several incidences where the travelers who have rented these accommodation spaces have stolen some of the items or vandalized the entire home (Folger, 2016). In one particular incident, a property owner who had rented their suburban family house to some travelers courtesy of Airbnb found that his home had been damaged, his property stolen and the place was littered with paraphernalia used by the users of methamphetamines (Mukherji, 2013).
Another disadvantage from the perspective of the traveler is that the rented accommodation spaces might not reflect the description given in the profile at Airbnb (Folger, 2016). Due to the fact that everything is done online, there is no way to verify that the description made by the property owner reflects the grade and characteristics of his property. In such an instance, the traveler would have to settle for a lower grade accommodation space. Additionally, there is also the prospect of property owners who are indifferent to the needs of the travelers (Folger, 2016). The hoteliers are keen to request for and meet the needs of the customers because customer satisfaction is an integral tenet of their business model. This may not be the case for the property owners in the privately-rented accommodation spaces.
Effect of the Private Accommodation Rental Services on the Tourism Sector
The private accommodation rental services have affected the tourism sector in different ways. Gill (2015) finds that their operations have effectively undermined the provisions and regulations on the occupant health and safety. The players in the tourism sector such as hotels and travel agencies are strictly regulate to ensure that the services provided to the customers are of high quality and comply with the provisions for health and safety. Gill (2015) contends that players such as the Airbnb are not held to these standards and as such have an unfair advantage over the others players in the industry.
Patrick (2015) has a different perspective regarding the effect of the private accommodation rental services in the tourism sector. He argues – while citing statistics from a survey performed by a Canadian research firm – that Airbnb is still a niche business despite reports to the contrary. Patrick (2015) substantiates these arguments by citing findings that Airbnb is only known to 19% if the consumers in Britain and that the utilization of the service is to 7%. It is my conclusion that even though these statistics show a minimal effect, a shift in consumer preferences and a higher regard for cost effectiveness will see more people relying on the private accommodation rental services for their holiday and travel needs.
Summary
Private accommodation rental services offer value to their clients by presenting information on the available accommodation spaces for travelers in one platform. Through the profiles created, the travelers can find accommodation spaces conveniently located to rent. The advantages these services offer include a new experience for the traveler and also good accommodation space at a fraction of what they would pay in a hotel. For the property owner, the main advantage is the injection of income. Some of the challenges that face these services include the potential for property damage, indifferent hosts, and the probability that the rental spaces will not match the description in the profile. Their effect on the tourism industry at present is not widespread. However, potential changes in consumer preferences and the regard for cost effectiveness will see these services usurp the mainstream players in the travel and tourism industry.
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References
Folger, J. (2016). The Pros and Cons of Using Airbnb. Investopedia. Retrieved from http://www.investopedia.com/articles/personal-finance/032814/pros-and-cons-using- airbnb.asp?performancelayout=true
Gill, R. (2015). How the likes of Airbnb are catching up with traditional travel companies. Travel Trade Gazette UK & Ireland. 5/7/2015, Issue 3146, p12-12. 1/2p. Retrieved from
http://web.b.ebscohost.com.library.smu.ca:2048/ehost/detail/detail?vid=37&sid=0172c2b 5-2d33-42cc-aaad- b1c91c8c5278%40sessionmgr102&hid=124&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d %3d#db=buh&AN=102966771
Mukherji, A. (2013). Top 5 Airbnb Home-Rental Horror Stories. Retrieved from http://blogs.findlaw.com/law_and_life/2013/06/top-5-airbnb-home-rental-horror- stories.html
Pascale, D. and Tommaso, M. (2015). Why high-end Parisian hotels are crying foul over Airbnb. Australian Financial Review. Retrieved from http://connection.ebscohost.com/c/articles/108958605/why-high-end-parisian-hotels-are- crying-foul-over-airbnb
Patrick, W. (2015). Airbnb is still niche. Travel Trade Gazette UK & Ireland. Retrieved from http://connection.ebscohost.com/c/articles/110325571/airbnb-still-niche
