Is it time to stop using Airbnb?

Is it time to stop using Airbnb?

After spending years on the platform, we're wondering if it's finally time to stop using Airbnb

When we moved to the country in 2018, our new neighbors welcomed us with noticeable relief.

‘We’re so glad you’re not turning it into a vacation home!’ They told us.

Like the seller, they had feared that the London couple who bought this quirky, dilapidated 300-year-old cottage would immediately list it on Airbnb and move back south.

We understood their relief, for a constant stream of strangers would certainly change the character of our charming cobblestone street. We assured them that no, this house was for living.

alt="Richmond Castle rises above the city">DreamtimeOur city of Richmond has its fair share of vacation homes

I thought of this conversation recently after reading a post by travel blogger Adventurous Kate criticizing the use of Airbnb.

I'm not going to lie: we're long-time users and supporters of the service. We've enthusiastically written about why we use Airbnb, shared Airbnb etiquette, and explored the importance of being honest in Airbnb reviews.

We believed the hype. We believed Airbnb would democratize travel, take on giant hotel chains and line the little man's pockets. Instead, it has become a corporate giant with a pronounced impact on local communities. Here are just a few of the allegations against the company that have us wondering whether it's finally time to stop using Airbnb.

It undermines local communities

Airbnb was originally designed as a way for people to rent out their spare rooms and make some extra money. The permanent residents of an apartment would still be present, meaning that the essential composition of an apartment building or local street would remain unchanged.

alt="Is it time to stop using Airbnb: a house with a castle">ShutterstockIs Airbnb turning apartments into replacement hotel rooms?

Unfortunately, landlords who once rented their properties to long-term tenants realized they could make more money with short-term rentals, so they moved their properties to Airbnb. By 2017, more than half of all listings on the site were for entire properties rather than guest rooms.

This reduced the housing inventory for long-term renters in cities around the world, from Barcelona and Amsterdam to Boston and New Orleans. “Units” once occupied by permanent residents have been turned over to a revolving door of visitors, undermining the local sense of community. As one Edinburgh resident put it: “It changes the way you feel at home”.

This drives up rents

Research from Harvard Business Review found that a 1% increase in Airbnb listings is causally linked to a 0.018% increase in rental prices. That may seem small until you consider that Airbnb's year-over-year growth is about 44%. Overall, this means Airbnb's growth contributes to about a fifth of the average annual increase in U.S. rents.

We can't say for sure whether this is reflected elsewhere, but it's logical to assume that reducing the supply of long-term rentals is driving up the cost of those still available.

It doesn’t pay its “fair share” of taxes

Airbnb was accused of not paying its “fair share” of taxes. In 2016, the £23bn company paid £314,000 in UK taxes and just over £90,000 in French taxes. The company came under scrutiny by UK tax authorities in 2018 and again in 2019.

It's true that Airbnb is hardly alone when it comes to Big Tech's approach to taxation, but that's particularly out of place with Airbnb's friendly, folksy "let's share" branding.

old=““>ShutterstockAirbnb's strategy doesn't mesh well with its friendly, folksy branding

It behaves like a tyrant

Airbnb has filed lawsuits against several city councils who have tried to mitigate the impact on local communities.

Wired reports: “In November 2018, Airbnb sued Boston in federal court, challenging an ordinance aimed at stopping hosts from converting homes and apartments into de facto hotels.”

The company has also filed lawsuits against San Francisco, Miami Beach, Palm Beach and other locations.

Some commentators, such as David Heinemeier Hansson, the co-founder of Basecamp, have criticized Airbnb's ethics, including its decision to operate in the occupied West Bank and its approach to surveillance and privacy. In the meantime, anecdotal evidence as well as empirical analysis suggests that Airbnb's racial problem still exists.

Conclusion

So is it time to stop using Airbnb?

At Atlas & Boots, we no longer use Airbnb abroad and instead opt for hotels and guesthouses. We use it in London when we visit friends and family, but we never book a whole house. We always stay with one of two hosts, which, by the way, has helped us find exactly what Airbnb seems to have lost: a chance to make a meaningful connection.

I'd like to conclude that all is not lost and that this scrappy upstart who grew into an 800-pound gorilla can find himself again - but I don't really believe that. I think it's too far down the path of expansion. Instead of stricter regulation (which Airbnb fights at every turn), consumers just need to vote with their wallets and stop using Airbnb. Peter and I aren't quite there yet, but we're on the way.

We hope you are too.

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Main image: Shutterstock

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