Airbnb industry needs regulation with a light hand

AIRBNB was originally a wellorganised, fee-paying version of couch surfing but it has rapidly grown and changed into a differentiated market.

The debate continues as to whether Airbnb can be blamed for housing shortages in some cities, or whether it should be hailed as a hero for filling accommodation shortages that exist around mega events such as the Commonwealth Games.

I recently conducted research on Airbnb with UQ Professor Sara Dolnicar into what types of hosts use the platform. We found that diversification of types of Airbnb hosts had certainly occurred.

We found three main types of Airbnb hosts. There is the traditional Airbnb host who is attracted to the platform through a desire to socialise, meet people and share their unused space. Income is not a strong priority for these hosts.

We also identified hosts who are highly motivated by money and seek maximum return on their investment.

And thirdly we identified hosts who are a combination of both – Airbnb provides them with not only income, but a sense of purpose through the opportunities they have to meet and host their guests.

The problem that exists as a result of the rapid rise of Airbnb and its diversification is that external monitors, policies and the broader tourism industry have struggled to keep pace and, as such, the tidal wave of Airbnb has become a problem. Platforms such as Inside Airbnb scrape data from Airbnb websites to estimate the income and occupancy levels of Airbnb properties.

It is argued that “entire homes” listings are responsible for housing crises in cities such as Hobart. However, according to Airbnb an “entire home” can be a granny flat, apartment, caravan, garden shed, a standalone property bought as an Airbnb investment or the family home that is rented out for three weeks over the Commonwealth Games.

So if a government decided to ban or limit “entire home” listings, as has happened in Barcelona, hosts who rent out property periodically or own a space they never intended to

THE DEBATE CONTINUES AS TO WHETHER AIRBNB CAN BE BLAMED FOR HOUSING SHORTAGES IN SOME CITIES

put on the long-term rental market will be banned from hosting.

This means that during the summer period, mega events, or following emergencies, Airbnb properties that are listed as “entire home” will not be able to be used to alleviate shortages of beds.

Moreover, the policing of these rules is difficult as each and every “entire home” would require inspection to determine whether it is a “true” entire home, or merely a space that was never intended for long-term rental.

The challenge for the tourism industry is to ensure that any regulations allow the local community to benefit from tourism, while also facilitating outstanding tourism experiences for our visitors.