Spa treatments, photographers, makeup artists, and bespoke options ranging from beach volleyball in Rio with an Olympic athlete to a Sunday adventure with an NFL football star in Atlanta are all available now through the Airbnb platform.
Yet it is not all smooth sailing for Airbnb - Barcelona has announced a total ban on short-term rentals, NYC has changed regulations to be highly restrictive, Italy has changed tax policies to make short-term rentals much less attractive e, and cities in California are banning any short-term rentals on the coast.
My own personal opinion is that short-term rentals distort real estate markets, displace tenants including students, and create unappealing tourist compounds in what were some of the most dynamic and diverse areas of major cities.
As an example, the formerly super cool neighbourhood of Trastevere in Rome is now nothing more than a bunch of lockboxes for short term rental properties. The locals are long gone.
Do you really need to fly all the way across the ocean and come to Rome to meet up with the same people from the same culture you see every single day?
As for the airbnb brand extension, I can appreciate that they are experimenting with services, and if this assists them in better serving their target customers may well be a Strategic step in a positive direction. Clearly there are limits as to how much further growth in their CORE offering can achieve.
What are your thoughts on Airbnb and short term rentals in general?
Strategy is Mastery.
Scott Newton, Managing Partner
Scott focuses on strategy, digital transformation, mergers, and acquisitions for leading companies worldwide.
He has worked with global clients specifically to identify the best paths for growth and sustainability while developing new business models. Companies work together with Scott to develop and acquire the capabilities required to achieve long-term EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) potential with an emphasis on responsible growth.
Mr. Newton joined Thinking Dimensions in 2001, and has worked with clients in EMEA, APEC, and The Americas for both emerging market and mature market development.
www.thinkingdimensions.it
