Challenges and Issues in Airbnb Accommodation Management

0Running head : HOTEL AND ACCOMODATION MANAGEMENT
HOTEL AND ACCOMODATION MANAGEMENT
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1HOTEL AND ACCOMODATION MANAGEMENT
Industry Overview: AIRBNB
An online society marketplace, connecting people who are interested in renting their
homes with people who are looking for accommodation .The users of Airbnb includes hosts and
travelers; the host lists their homes in Airbnb and rent out their unused places, accordingly guest
searches and book for accommodation in many countries worldwide. Airbnb has transformed
officially from accommodation minnow to a massive in less than five years, with trending
features revealing the allotment platform is on the edge of turning above $1 billion per year in
Australia (Ikkala and Lampinen 2015) .Airbnb stands for Airbed and breakfast. Airbnb allows
the guest to get access to entire place including a bathroom, bedroom and a kitchen. Airbnb is
Australian ideal place for guest. According to the co-founder of Airbnb Joe Gebbia tells it, “that
it feels good to pay taxes”. Its focus is to introduce regulation and keeps the neighbor happy,
shows interest in working with local government and the part of the society and helps in saving
mortgage people’s homes. Sam McDonough the manager of Airbnb’s New Zealand and
Australia said: “More than two third of listings in the platform shares their home in Australia”.
Airbnb hosts does not requires any national rule for paying extra tax in case they are living in a
place frequently visited, this comes under the responsibility of state government and local
council (Summers 2016). The property of Australian Airbnb has experienced 4.6 million arrivals
over the precedent year. Australia has been registered as the leading country with users for every
capita of any country — one fifth of every Australian holds account in Airbnb. Till date its being
listed that there are 122,500 active listings and around 4.8 million Airbnb users— there is an
increase with 40 per cent over preceding years (Palombo 2015). The Airbnb is always in talks
among people as they do not need to pay the tax, but as earlier, the co founder said, they love to
pay taxes. Airbnb’s holds partnership with 340 cities all over the world, and this countries

2HOTEL AND ACCOMODATION MANAGEMENT
regulations include causative to taxes collected, this taxes are collected by hosts in regarding
with the facilities provided to the guests (Oskam and Boswijk 2016). For the past year, Airbnb
has offered a service where locals can offer experiences to visitors, such as walking tours
or home-cooked meals. He said one woman overseas had made $15,000 in a matter of
months, and that some who offered visitor experiences had become involved because
they did not have accommodation to rent on the platform (Zervas, Proserpio, and Byers
2017).
Accommodation issues
There are many challenges faced by Airbnb despite the benefits, there arises concerns
for both guests and hosts. One of the major risks with accommodating guest is that they may
cause damage to their property. Many incidents state that the entire house is being trashed, when
the hosts of Airbnb thought that they were renting to a quiet housing family, also there were
instance when host came home and found things were stolen from their place and the rooms are
being littered with meth pipes. In some countries Airbnb states that there is no charges going to
be imposed on the guest for damaging the property, but there is a protection allocated up to
$1,000,000, if any damage occurs heavy then the guest need to pay this amount, this is only for
few countries (Brochado , Troilo and Shah 2017). There is a host program that guarantees some,
terms and conditions that can be applied on the things after damage. This is a big relief for host,
but it is necessary for the host to read all the terms, conditions carefully, and understands them
fully and the steps required to be taken by the host to seek for payment under host program. In
addition to this, hosts should recognize their renters, homeowner’s, and umbrella insurance