Report Reveals Troubling Trends for Airbnb Operations in Boston Area
June 16, 2016 8:52am
83% of Airbnb Revenue in Boston – or $40 Million – Comes from Operators Listing Units for Rent More Than 30 Days per Year
WASHINGTON, D.C., June 16, 2016 – The American Hotel & Lodging Association (AH&LA) today released a new study that provides a detailed analysis of the rise in commercial activity taking place in Boston on Airbnb, one of the most trafficked short-term rental websites. The study was conducted by John O’Neill, MAI, ISHC, Ph.D., professor of hospitality management and director of the Center for Hospitality Real Estate Strategy in the School of Hospitality Management at Penn State University, and examined activity on Airbnb between October 2014 and September 2015.
The study builds on the national analysis released earlier this year that shows a troubling trend: a growing number of commercial operators are using Airbnb to run unregulated, and often illegal, lodging businesses.
“In the Boston area, commercial landlords using platforms such as Airbnb are essentially operating de-facto hotels that dodge many of the important lodging rules and regulations that protect our guests and preserve communities,” said Rachael Solem, Owner, Irving House at Harvard & Harding House. “As a bed and breakfast owner in Cambridge, I follow the rules of the road and so should the commercial operators who use sites like Airbnb to run commercial businesses. Elected officials in Boston, Cambridge and around Massachusetts should take steps to stop illegal hotel operators and level the playing field for our state’s legitimate businesses.”
“Hotels and other lodging businesses in Massachusetts thrive on competition that occurs on a legal and level playing field,” said Paul Sacco, President and CEO of the Massachusetts Lodging Association. “Unregulated hotels operated in residential properties are disruptive to communities, and pose serious safety concerns to the millions of tourists who visit our state annually, and to the residents who live and work in our neighborhoods The rise of these commercial hosts represents a large and growing revenue stream for short-term online rental platforms like Airbnb and a challenge for policymakers who are trying to protect communities and ensure a level playing field for businesses in Massachusetts.”
“Illegal hotels operating in residential areas in the Boston metropolitan area and across Massachusetts present serious concerns for travelers and residents alike,” said AH&LA President and CEO Katherine Lugar. “We have seen again and again in cities across the country that Airbnb is unwilling to be transparent with its data and truly partner with city and state officials to create safe environments for its users and the communities in which it operates. And now we know why: a growing portion of Airbnb’s revenue comes from commercial landlords using the platform to operate unregulated and often illegal lodging businesses. Airbnb’s reluctance to be more forthcoming with their data should call into question their ‘honor system’ for how the short-term rental platform plans to remit taxes in the city and crack down on illegal hotels. Policymakers in Massachusetts and around the country should act to ensure a fair travel marketplace by closing the illegal hotel loophole.”
Boston is one of the 14 cities profiled in a series of reports that comprise a second phase of an analysis into the commercial activity being transacted on Airbnb’s platform. The initial analysis (“From Air Mattresses to Unregulated Business: An Analysis of the Other Side of Airbnb”) was released in January 2016.
The full report is available for download on the AH&LA website at www.ahla.com.
Tags: the american hotel & lodging association,
Serving the hospitality industry for more than a century, the American Hotel & Lodging Association (AH&LA) is the sole national association representing all segments of the 1.9 million-employee U.S. lodging industry, including hotel owners, REITs, chains, franchisees, management companies, independent properties, state hotel associations, and industry suppliers. Headquartered in Washington, D.C., AH&LA provides focused advocacy, communications support, and educational resources for an industry of more than 53,000 properties generating $176 billion in annual sales from 5 million guestrooms.
Contact: Rosanna Maietta
Contact: Katie Longo
Hotel & Leisure Advisors Top Five Takeaways From NYU Hotel Investment Conference
ISHC Worldview: Sharing Economy and the Appeal of Timeshare
The Rise of Reservation Re-Sale (and Why Airbnb Is Involved)
CNBC Investigates - Unwelcome Guests: Airbnb, Cities Battle Over Illegal Short-Term Rentals
What Should Hotels Learn and Copy From AirBnB
The Shared Hotel Room
How Much of a Threat to Hotels Is Airbnb?
AHLA Names Rosanna Maietta President of American Hotel & Lodging Educational Foundation
Airbnb's Market Share of U.S. Lodging Demand Increasing at a Decelerating Rate
What Hotels of Tomorrow Can Learn From the Airbnb's of Today
Why Not List Your Hotel on Airbnb?
Tax Day: Hoteliers Call for More Transparency and Oversight in Taxing Airbnb
Should You Start Putting Rooms On Airbnb?
In Europe, We Made A "Bang" but It Wasn't "Big"
How the New Airbnb Offerings Impact the Hotel Industry and What Hotels Brands Can Do to Win in the Sharing Economy
Winning the Direct Booking: Combat the Effect of Airbnb on Your Hotel’s Bottom Line
Airbnb and Revenue Management: Hotels Still Maintain Upper Hand
AHLA Responds to Airbnb Plus & Boutique Program Announcement
AHLA Praises U.S. House of Representatives for Vote to Strengthen ADA
New Study Finds U.S. Millennial Travelers Still Prefer Hotels Over Airbnb
Please login or register to post a comment.