Hospitality Today HT19 - Feb-Mar 2014 | Page 11

hospitalitytoday.com | 11 his brand name, invest in regulatory compliance, and bear the costs of taking responsibility for his paying guests. So he is galled by a mere website claiming to be comparable to his “real” business of people, bricks, mortar and beds. HT reports on the two sides of the argument that has become one of the biggest in hospitality. Last November, Airbnb co-founder Nathan Blecharczyk told The Sunday Telegraph: “InterContinental and Hilton have more than 650,000 rooms. We have 500,000, though they have a much higher occupancy rate.” Asked if he expected Airbnb to overtake the two groups during 2013, he replied “yes”, adding “If you look at our historical growth curve, I don’t think that’s going to change very quickly - we’ve been growing bookings and revenues two to three times every year and I would expect that to continue.” And on 28th January, Airbnb publicised “research” that claimed to show that it “generates £502 million in economic activity in the UK” and “supports 11,629 jobs”. All these claims are said to infuriate Richard Solomons (right), despite his public appearance of calm serenity – and it is easy to see why. Airbnb is claiming two mutually exclusive statuses for itself at the same time: in the media, Airbnb (no doubt with an eye partly on brand value) is portraying itself as if it were a hotel brand like Hilton or IHG. Yet legally (in its small print), it insists that it is merely a platform to enable a “host” to match a “guest” – and so has no part in the transaction and takes no responsibility for it whatsoever. Mr Solomons’s company, however, like every other hotelier, has to stand behind The claims for UK economic benefit and to “support jobs” also ring hollow to hoteliers and B&B owners seeing their businesses undercut by non-compliant “hosts” letting their spare bedrooms through Airbnb, Wimdu, One Fine stay and other similar websites. This is particularly acute for “bona fide” B&Bs, which are arguably the most direct victims of the competition posed by Airbnb’s huge growth. The Bed & Breakfast Association is vociferous in claiming that “there seems to be one rule for us, and another for them (ie, no rules)”. Its members protest that a “visible” B&B – even with only one letting bedroom – will be visited by the Fire Authority and inspected for fire safety, whereas its neighbour letting spare bedrooms through Airbnb will not – it seems – be subject to any compliance checks from anyone. Nor will most Airbnb “hosts” have public liability insurance.