Accommodation booking service Airbnb is a relatively new company, but already it's seen as a serious threat to established hotels and motels.
It's growing in popularity around the world, including here in New Zealand, but it's also controversial.
Its elaborate television advertisements, made by Kiwi animation house Cirkus, are a clue that Airbnb has plenty of money. Recent reports have suggested the company is worth almost $17 billion.
"It's certainly popular on an international level, and I think New Zealand's just starting to see the popularity increase," says Hospitality NZ national president Adam Cunningham, "but if you look at America or Europe, it's a very popular site these days."
Instead of booking a hotel or motel, users can browse rooms and entire properties rented out by other individuals.
Sue Thompson says Airbnb has been brilliant for her Paihia bed and breakfast.
"A friend of mine in Sydney put me onto it back in 2010, and I signed up with them," she says. "And from then on, and a learning process, it's just gone from strength to strength, to the point that I'm only advertised on Airbnb."
But not everyone loves the service – especially in New York, where the legality of leasing your apartment is being debated as the city tries to crack down on illegal hotels.
3 News spoke to a range of hospitality associations, all of which said the laws around offering a room or a property will vary across districts. And if you're a renter, it also depends on your tenancy agreement – so the best advice is to check before you list.
But even if you're listing legally, the Hospitality Association says it has concerns about the service.
"Be wary of Airbnb, full stop," says Mr Cunningham.
He says that's because people listing on Airbnb usually don't have to comply with the same regulations that apply to the hospitality industry.
"The industry works very hard to fulfil its requirements and obligations under legislation, under health and safety, even just down to customer care and safety. And these types of sites allow people to get involved in the industry that may not understand any of that."
He says hotels and motels are competing with individuals who don't have the same expenses.
"If you're gonna be in business you should be in business; if you're not gonna be in business, you shouldn't be in business.
"There'll always be a place for the opportunity for someone to rent out their bach for a period of time – that's always gonna be a part of our industry. But it would be concerning if we saw that non-professional approach to accommodation standards get bigger."
But for Ms Thompson, it comes down to the numbers – she says Airbnb's fees are far lower than those of the local listing services she used before.
"One of them was charging me $55 a month, and I'd get one or two bookings."
As far as she's concerned, Airbnb provides the best service – and judging by its growing popularity, plenty of others agree with her, here and around the world.
3 News
source: newshub archive
