The morning after a wedding in Vermont this summer, my friends and I were recovering in a hot tub while I battled a garbage disposal, scrubbed the kitchen counter, stripped the bed, and took out the recycling. Everyone else was chilling at a hotel, blissed-out before braving the six-hour drive back to New York. My boyfriend and I, on the other hand, made the mistake of staying at an Airbnb. Despite the $95 cleaning fee, we were left with a bewildering list of pre-checkout chores.
Something about Airbnb feels off these days. Those looking for a cozy and homey place to stay often encounter high prices, inconsistent fees, demanding check-out tasks, and misleading photos and descriptions. You might end up like me in Vermont, staying in one of many identical units listed by the same host. These units are more like IKEA showrooms than cozy ski lodges. Customers aren’t happy and are expressing their outrage on social media, and cities are cracking down too. In fact, New York City recently implemented a new law that effectively bans most short-term rentals, resulting in the disappearance of 15,000 Airbnb listings.
The root of Airbnb’s troubles lies in its tremendous growth. Launched in 2008, it started as a scrappy community-based platform driven by the gig economy, with three air mattresses on the founders’ living room floor. But now it has become an industry of its own, with hosts ranging from individual property owners to large property management companies that handle multiple listings. The focus on quantity over quality has stretched Airbnb thin. Like any tech company, Airbnb pursued growth and may have gotten more than it bargained for.
The concept of Airbnb was initially groundbreaking: renting out unused guest rooms or empty apartments to make money, while offering travelers a unique and personalized travel experience. However, the reality today is far from that. Instead of having hosts readily available for recommendations or assistance, guests are often left with a lockbox for keys and a binder of instructions on a kitchen table. Many Airbnb hosts never even see or interact with their guests.
With the increasing number of properties purchased specifically for Airbnb rentals, it became clear that Airbnb had become corporate. The number of Airbnb listings in the US has skyrocketed from 150,000 to nearly 1.5 million since 2015. Some listings are designed specifically for certain types of travelers, like bachelorette parties or Lord of the Rings enthusiasts. The line between Airbnb and hotels has blurred significantly. Mega-hosts, who own 21 or more properties, now make up 30% of active listings. In 2018, Airbnb even started allowing boutique hotels and B&Bs to list their rooms.
The gig economy aspect of Airbnb is almost non-existent now. Managing an Airbnb listing has become a full-time job, especially for those with multiple properties. Tasks include photography, listing creation, guest communication, stocking the rental, and managing finances. What was once a side hustle has turned into a demanding endeavor.
The rising cleaning fees on Airbnb have become a major point of contention. Hosts are responsible for setting their own cleaning fees, which can vary greatly from one listing to another. These fees can add an extra $100 or more to the daily rate, which itself has increased by 36% in recent years. Some hosts lower the daily rate and increase the cleaning fee to appear higher in search results, as potential guests often filter search results based on daily rate alone. It’s become a race to the bottom for hosts.
This has led to unfortunate situations where guests pay exorbitant cleaning fees, only to be scolded by hosts for not following unwritten rules. Guests may feel hesitant to leave negative reviews if they perceive hosts as struggling individuals rather than professional management companies.
The growth of Airbnb has not only led to conflicts between hosts and guests but also regulatory challenges. Airbnb rentals now resemble hotels in many ways, but they are not subject to the same licensing and legal requirements. Some cities have imposed restrictions, such as licensing requirements, registration, and limitations on the number of days a property can be rented. Airbnb claims to be in good standing with cities around the world but New York City’s rules are a blow to the company.
In conclusion, Airbnb’s explosive growth has resulted in a departure from its original concept and a shift toward a corporate model. The quality of listings has become inconsistent, and cities are stepping in with regulations. It remains to be seen how Airbnb will navigate these challenges and whether it can maintain its position as a leading platform in the hospitality industry.
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