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Airbnb, a San Francisco based “community marketplace” for travelers has revolutionized the way people choose to stay during a business trip or vacation. The human aspect of the deal is probably what attracts most travelers who prefer to live like a local rather than a tourist. But is the company staying true to their original vision, of connecting private parties who want to rent out their homes with travelers who prefer to stay in a home or shared lodgings while traveling?
According to a recent study, conducted by Pennsylvania State University (PSU) and funded by a hotel industry group, 39 percent of Airbnb’s $1.3 billion revenue (from 12 metropolitan cities) went to landlords with multiple units and 29 percent to landlords whose property was occupied for almost an entire year. It is possible that, departing from their original claims of having listings only from private homeowners, Airbnb started seeing more returns from landlords with multiple and long term rentals.
The vacation rental industry has also affected the housing market in many cities. The study found that vacation rental companies may be instrumental in reducing the housing inventory, as they encourage more landlords to keep their homes exclusively for renting.
This data makes us wonder if with our next booking we would be dealing with a private owner or a big rental company. This uncertainty steals from the whole aspect of renting from a local resident.
From a traveler’s perspective, while on vacation, would you prefer: to cook, clean and do laundry or not have to worry about everyday chores? Hotels have a reputation to safeguard and hence provide prompt customer service, whereas with a rental you might be stuck with a leaking roof and a landlord who lives out of state.
Renting a home offers more privacy for quality bonding time with family and friends, but it does lack the flexibility of switching rooms in case of an issue. Hotel rooms, on the other hand, lack the personal touch that a home can provide.
People might claim that most hotel rooms do not provide kitchenettes, which is never a problem when renting someone’s home. It may also be possible to find a beautiful rental home, in lush settings, for a fraction of the price you would pay for a luxury suite in a hotel. As always, there are pros and cons to both lodging arrangements.
So, would you rather save money by renting from a local resident or enjoy the amenities a hotel has to offer?