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New Microhotels Fight Airbnb With 65 Square Foot Rooms (nytimes.com)
HughPickens.com writes: Amy Zipkin writes in the [New York Times] that a growing number of so-called microhotels are taking a smaller-is-better approach to fight Airbnb, offering rooms in New York City for about $100 a night. The catch? Some rooms measure 65 square feet and offer a shared bathroom. "Disruptions from short-term rentals are creating a whole new supply channel," says Scott Berman. The micro concept first gained traction in Europe with brands like CitizenM and Yotel at airports and in urban centers. Now the model is expanding. Yotel, which has a property in Manhattan, plans to open others in San Francisco, Boston, Miami and Brooklyn, as well as London, Geneva and Singapore. Pod expects to open another hotel in Manhattan, as well as in Brooklyn and Washington. "We are focused on the millennial-minded consumer, with an emphasis on style, attitude and design at an economical value," says Vicki Poulos. But some travelers don't necessarily agree that the comfort level equals that of regular hotels. "At first, it is entirely novel," says Diana Edelman. "But then reality hits that it is nearly impossible to open a suitcase in the room without hitting your head on the bed's 'roof' or that you are showering next to the toilet and sink."
Showering next to the toilet and sink? Er, is there something wrong with that?
I understand that college kids and the young may not care about this sort of thing, it's go cheap or don't go at all. But this is an absolutely terrible idea, that if it catches on, will make business travel even more shitty than it already it for people in most typical bottom dollar employers. Already some of these places have a $25/day restriction on food (McDonalds basically) . It's better not to compete with Airbnb, and let the kids do as kids do and focus on the captive audience that is already paying premium because it can afford it, but doesn't want to afford it.
I am all for more options. And I definitely can see how a small and affordable hotel room fills a particular niche. But I don't see how this would be direct competition with AirBNB.
When I travel, I book AirBNB because I want an apartment rather than a hotel room. I don't necessarily need the amenities that traditional hotels offer (i.e. front-desk, swimming pool and on-site restaurant), but I do want a multi-room apartment; the ability to use the kitchen; convenient location downtown and close to public transportation; in-unit washer/dryer; included WiFi networking; affordable long-term rental; ...
I can find some of these conveniences in hotels, but only after searching a lot and usually for quite a high premium. AirBNB (or its various copy-cats) really don't have much competition from traditional hotels.
Unfortunately, there is always someone who will pay for anything. If there was something $10 less than a 65x65 room, then there to some people the 65x65 room looks like a frivolous luxury expense. Chasing these consumers will always be a race to the bottom. This is why there have always been health and safety regulations. Now with Ubers and Air BnBs able to work around the regulations, there is nothing to stop from hitting the bottom.
Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.