Accommodation revolution: Is this the best thing to happen in travel since the invention of the plane?

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This was published 8 years ago

Accommodation revolution: Is this the best thing to happen in travel since the invention of the plane?

By Ben Groundwater
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There's no check-in desk. There's no concierge. There's no bellboy, no room service, no mini-bar, no restaurant, no day spa, and no breakfast buffet. Sometimes, there isn't even a room. Welcome to your holiday accommodation, circa 2015. It's not a hotel as you know it. In fact it's often not a hotel at all.

Thanks to a revolution that's been quietly taking place for the last five or six years, there's never been more choice for travellers when it comes to finding a place to lay your head. Maybe you're in someone's apartment. Maybe you're in a house. Maybe you're in a castle or a chateau or a mansion. One thing is certain: the traditional idea of what constitutes "normal" accommodation is gone forever.

Conventional hotels and resorts do still abound; in fact they're thriving. But those familiar options have now been augmented with a raft of new possibilities, led by the rapid growth of the short-term rental website Airbnb, and competitors such as Stayz, Roomorama and HomeAway.

These sites allow everyday home owners to rent out a room or their whole dwelling to travellers, opening up parts of cities and countries that visitors have never previously had access to. It's a revolution, but it's not without its problems. So is this the greatest thing to happen to travel since the invention of the aeroplane? Or is Airbnb just a very naughty boy?

CLEARING THE AIR

One bad experience: that's all I've had. And it wasn't even that terrible. I'd booked a place in Gothenburg, Sweden, sharing a flat for a few nights with a guy called Alex. In fairness, Alex sounded a bit odd from the outset. He was a musician who spruiked the fact that guests using his spare bed would also have access to his "adventure room", as well as all his recording equipment.

The problem was that when I arrived, Alex wasn't there. He was home in the US. And his flat hadn't been cleaned since the last guest had stayed. And it turned out that his spare bed was a mattress on the floor, and the "adventure room", frighteningly, was Alex's bedroom. It wasn't a pleasant stay.

But still, that's not bad going. I've been using Airbnb regularly for the last five years and that's the only time it's gone even slightly wrong. The rest of the time it's been a dream. I've rented properties in 10 countries across four continents. I've stayed in everything from penthouse apartments to beachfront shacks, converted warehouses to shoebox flats. And it's all been fantastic.

Each of these experiences has demonstrated the advantage of forgoing traditional accommodation. Each time I've been given an insight into how people really live in the city I'm visiting. Each time I've been given the opportunity to stay in a neighbourhood I either couldn't normally afford, or would never be able to stay in because hotels there simply don't exist.

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This is what Airbnb and its ilk are supposed to be about. This is the dream. And I'm certainly not the only one living it. Next week alone, 30,000 Australians will use to the website to book holiday accommodation. There are more than 1.5 million properties listed worldwide; the site has hosted more than 50 million guests. Clearly, a revolution is underway.

ANY RESERVATIONS?

As with most revolutions, however, this one has its opponents. The Airbnb model of normal residents renting out their homes short-term to travellers is one that has upset some in the hotel industry, in government, and even users of the system. Let's address the problems.

The first is safety. When you rent someone's home through Airbnb, or its competitors, the property won't have undergone all of the fire and safety checks that a hotel room would have had to pass. Your host isn't officially regulated either, and there's been at least one recent incident of a host mistreating someone staying in their home.

Sam McDonagh, general manager of Airbnb Australia, says his company is attempting to combat this with various methods of identity checking, as well as having guests review hosts, and vice versa. "Among [these measures] are extensive [member] reviews that can only be left when a transaction has been made, member profiles with detailed information, verified phone numbers and email addresses, linkages to [members'] social media accounts, and verification of government-issued identification documents," he says.

So who else has a problem? Governments. Such a problem, in fact, that local councils are moving to force Airbnb out of some cities, banning holiday rentals of less than 30 days in New York, San Francisco and Santa Monica, among others. The issues they cite is that with so many apartments being rented to short-term visitors, the fabric of their communities is being eaten away. There's also the not-insignificant fact that the vast majority of short-term rental properties aren't paying hotel taxes, meaning governments are losing a huge amount of money.

But it's difficult to police. For example, despite the fact there are more than 10,000 properties in Sydney listed on Airbnb, the practice of short-term rentals is supposedly banned by most Sydney councils. "Our current planning controls do not allow tourist and visitor accommodation in residential zones or a mix of residential uses with tourist accommodation in the same building," says a City of Sydney spokesperson. Sounds fairly cut and dried, right? Well, it's not.

"Properties that are significantly overcrowded – with unauthorised building works and fire safety defects – are the city's investigative priority and the area where we'll take immediate action. We will also focus our resources on those who take advantage of vulnerable people by setting up networks of unauthorised share accommodation."

So Airbnb is not really legal here. But then again, the everyday users are not being cracked down on. Even Airbnb would prefer that all of this be cleared up. "One of the things we consistently hear from both councils and our hosts is that a lot of the policies governing home sharing are outdated and difficult to interpret," says McDonagh. "Many of them were written decades ago, long before the internet even existed. That's why we've been working with governments and policy makers for clear, fair, progressive rules that allow for home sharing."

YOU'RE STAYING WHERE?

Here's the truly great thing about the product offered by Airbnb and its ilk: it's changed the very nature of the travel experience. No longer are travellers locked into the hotel model, whether that's in terms of price, location, or facilities. You can now stay in a real home in an interesting neighbourhood for a fraction of the price of a hotel room.

You can have access to a kitchen and a laundry without having to worry about room-service charges or getting slugged $5 to wash a pair of socks. No more boring hotel rooms, either: now you can stay in a villa, or a chateau, or a windmill, or a houseboat, or a bungalow, or a treehouse. You can live the normal life of a local in the city of your choice. For travellers, it's a complete game-changer.

But again, there are issues. Because who's looking after all these tourists who are suddenly arriving in formerly locals-only communities? No one. The influx of visitors into these areas does bring extra cash, but community groups in cities such as Barcelona and Paris are worried that all those tourists are changing the nature of the suburbs they come to stay in, as well as driving up the rent for those who don't want to lease their house to tourists.

But Airbnb is adamant. "We're proud of the fact that the overwhelming majority of our listings are outside traditional hotel districts, so our guests live like a local, spending money at cafes, shops and restaurants not normally visited by travellers," says McDonagh. "This is great news for the local economy."

Fair enough. And Airbnb does open up a revenue stream for property owners that didn't previously exist, often helping people stay in their homes. But those social issues remain, and they're something you have to take into account when you decide to stay in these neighbourhoods.

THE INN THING

The landscape has changed. Travellers have become jaded with the cookie-cutter hotel experience, and those traditional providers are having to change up things as well. It's not just Airbnb and its competitors that are the signs of this. You only have to look at the rising popularity of boutique hotels, or the big chains now offering boutique brands such as Aloft (by Starwood Hotels), Hotel Jen (by Shangri-La), Edition (by RitzCarlton), and MGallery (by Accor), or even the spate of upmarket "flashpacker" hostels, to see how the accommodation sector has been altered. Travellers are craving a more personal experience, a more social experience, and everyone is having to adapt.

"The [entry] of new players such as Airbnb is a great example of how the travel industry continues to evolve and we respect their place in the market," says Simon McGrath, chief operating officer for AccorHotels Australia, the nation's largest hotel group. "We don't see ourselves as competing with Airbnb, but rather they are likely to be encouraging a new breed of traveller that we view as our guests in the future."

Because that's the thing: hotels are doing just fine. Despite the rise in competition, there's also been a recent expansion in the hotel industry, with more than 80 new properties set to open in Australia in the next five years. And some hoteliers are considering being even more proactive when it comes to Airbnb. Cameron Stewart, vice president of Hotel Operations for SilverNeedle Hospitality in Australia (parent company of Next, Sage and Chifley Hotels), says his company will consider harnessing the power of the site.

"We see Airbnb as a distribution channel," he says, "which may be adequate for some of our apartment-style offerings in the future. With the rise of Airbnb, the accommodation market now has more options."

And that's the most important thing: there's room for everyone. And rooms for everyone. Just watch out for the Alexes of the world.

HOW TO USE AIRBNB

A guide to becoming a guest…

SIGN UP, GET VERIFIED

The first step is to create an account on Airbnb, which involves verifying your identity through "offline" ID, such as a passport or drivers licence and "online" ID, which could mean linking your Facebook or Google accounts. You'll also need to upload a photo, and write a few lines to introduce yourself to potential hosts.

READ BETWEEN THE LINES

While the website's system of reviewing is a good one, guests do tend to leave overwhelmingly positive reviews after making a personal connection with the host. When deciding on a property, it's sometimes necessary to read between the lines of these reviews, noting potential flaws that might just be hinted at.

BOOK A PLACE

There are two ways to book on Airbnb, depending on your host's settings. You can "request to book", which gives the host a chance to vet your profile. The other is the "instant book" function, which means that with a click of a button, you're on your way. You'll need to have a profile photo to use instant book.

ARRANGE CHECK-IN

This procedure is completely up to your host, and can vary wildly. Some will come to meet you at the house. Some will leave a key in a lock-box and simply supply you with a code. Some will bail you up for hours chatting about their city. Some will speak no English at all. It keeps things interesting.

BE A GOOD GUEST

The success or failure of the Airbnb system lies with the people who use it. That means it's up to you to be a good guest – look after the property like it's your own, treat neighbours with respect, and be friendly with your host. And once you've left, write a review for others to see. …and be an Airbnb host.

... AND BECOMING A HOST

CREATE A DETAILED LISTING

Once you've decided to list your property, you can request a free professional photography service from Airbnb. Next, you'll want to provide as much detail about your place as you can, including local amenities, and who would be best suited to staying in your area.

CHECK THE LEGALITY

This is completely up to you. If short-term rentals are banned in your area, then you'll be on your own when it comes to defending any action brought against you. This is a grey area for many councils, so it's best to do your research.

SET A COMPETITIVE PRICE

Check out how much other hosts are charging in your area, and set your rate accordingly. Once someone books with you, Airbnb will hold on to the payment until 24 hours after the guest has checked in, at which point all of the money will be released (minus Airbnb's 3 per cent service fee).

BE A GOOD HOST

Again, the success of this system depends on you. Communicate with guests frequently, make sure the home they rent looks the same as the home they booked, provide them with information about your building and local area, don't cancel bookings, and review guests for the benefit of others using the system.

A SHORT HISTORY OF ACCOMMODATION

1862

The opening of Le Grand Hotel in Paris begins the era of the "grand hotel", a network of palace-like establishments patronised by the world's well-heeled.

1925

The Milestone Mo-Tel opens in California. It's the first "motor hotel" – budget accommodation designed for motorists on the go.

1954

The first "Club Mediterranee" opens in Salerno, Italy. It's just a group of straw huts on a beach, but it marks the beginning of the all-inclusive resort, and will later become Club Med.

1954

Hilton Hotels buys the Statler Hotel group, making it the largest hospitality company in the world, and heralding the beginning of "industrial hotels", or giant global chains.

1980

A third boom in hotels is marked by the appearance of new styles of accommodation, from airport hotels to conference centres, large ski resorts to health retreats.

1984

Ian Schrager and Steve Rubell, former owners of New York nightclub Studio 54, throw open the doors at Morgans, one of the first boutique hotels.

1996

Microsoft launches Expedia, one of the first online hotel booking websites.

1998

The opening of the W Hotel, in New York, marks the first foray of a major hotel chain – in this case Starwood – into a luxury boutique brand.

2007

Friends Joe Gebbia and Brian Chesky decide to rent space in their San Francisco house for travellers to sleep on air mattresses. It's known as "Airbed & breakfast", which soon becomes Airbnb.

2011

Airbnb announces its one millionth booking. By January 2012 that number is 5 million. By June the same year it's 10 million, and that number is now more than 50 million.

See also: The 15 coolest properties on Airbnb
See also: One Aussie hotel makes world's top 100 list

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