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The hospitality industry - do not disturb?

It’s not hard to see why traditional hoteliers are getting increasingly nervous about Airbnb; it’s A. N. Other example of the internet disrupting existing business models and, in this case, seemingly circumventing the strict rules and regulations that govern the hotel industry.
But it’s also hard to have much sympathy for a sector that’s been so complacent about better serving its customers. Yesterday I read a particularly depressing discussion on LinkedIn about whether or not luxury hotels should offer free internet access as standard. When the best argument against was “most guests who use the internet are business travellers; their companies are the ones paying for it so we should carry on charging” you can’t help feeling that some of these folks have it coming to them.
I joined Airbnb’s self-proclaimed revolution last month on a trip to Stockholm and I’m not at all ashamed to take this opportunity to plug Agnes’ delightful down-town apartment. What strikes me, however, is that the big chains probably don’t have that much to fear from Airbnb, despite the fact that many are actively trying to get it shut down. Yes the price-point is much lower than your typical hotel room, but there will always be those who seek out trouser presses, concierge,24 hour room service and the recourse that health and safety legislation is intended to provide.
The clue is in the name. It’s the bed and breakfast owners who have most to fear from Airbnb and I confess to feeling rather sorry for those conscientious souls who diligently adhere to the AA star guidelines and declare all income to HM Revenue and Customs only to watch their neighbours coin in the (undeclared) cash whilst avoiding calls from clipboard-wielding inspectors.
In time, perhaps the big boys will prevail and Airbnb will be shut down. Or perhaps they’ll be forced to tighten up the requirements around hosting to better protect users. Alternatively, perhaps more B&B owners will decide to reposition themselves as amateur set-ups and use Airbnb as their platform. I wouldn’t like to say what will have happened to Airbnb 5 years hence but what’s beyond dispute is that they’ve managed to light a rocket under the proverbial of an industry long overdue some disruption.
A hospitality revolution is indeed here. It just knocked very politely and then let itself in anyway.
Posted on June 21, 2011 with 12 notes ()
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