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Leaked Documents Reveal the Hotel Lobby's Aggressive Plan To Undermine Airbnb (gizmodo.com)

The New York Times has obtained a document revealing the hotel lobby's aggressive plan to undermine Airbnb's business "by pushing for bills to regulate the company at every level of government," reports Gizmodo. From the report: According to documents from the American Hotel and Lodging Association -- a trade group that includes the country's biggest hotel chains, including Marriott, Hilton, Hyatt, the Four Seasons and Starwood Hotels -- the organization is planning a multi-pronged attack at local, state, and federal levels to prevent Airbnb from spreading to new cities across the country. Part of the strategy includes "aggressively countering" Airbnb's claim that it's just helping the middle class make ends meet "with a wave of personal testimonials of consumer harm." The document essentially serves as opposition research and gives its members talking points about Airbnb's alleged racism and taxation issues. According to the document, the association will focus its efforts on Los Angeles, San Francisco, Boston, Washington, and Miami, where Airbnb has yet to establish a strong footing.

22 of 122 comments (clear)

  1. Damn by DontBeAMoran · · Score: 4, Funny

    The Internet keeps leaking documents, somebody should fix those pipes!

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    #DeleteFacebook
    1. Re:Damn by ZipK · · Score: 2

      The Internet keeps leaking documents, somebody should fix those pipes!

      Tubes. It's a series of tubes.

    2. Re:Damn by Penguinisto · · Score: 2

      The Internet keeps leaking documents, somebody should fix those pipes!

      Tubes. It's a series of tubes.

      Well, in the UNIX world...

      --
      Quo usque tandem abutere, Nimbus, patientia nostra?
  2. So? by Luthair · · Score: 5, Insightful

    Why shouldn't someone operating a hotel out of an apartment be expected to operate under the same rules?

    1. Re:So? by Anonymous Coward · · Score: 4, Informative

      Agreed. Neither side is easy to support here. If it were up to Airbnb, landlords would stop renting, every apartment would be put on Airbnb, and both Airbnb and landlords would make a fortune. If you lived in an Airbnb place, or next to one, you're dealing with a constant stream of changing neighbors who have no incentive to be good neighbors since they're on vacation and couldn't care less who hates them by the end of their stay. On the hotel side of things, they are often either pretty expensive or affordable but sketchy and dirty as hell, sometimes doubling as a place homeless stay. There also may not be enough during peak tourist season.

    2. Re:So? by Penguinisto · · Score: 2

      Why shouldn't someone operating a hotel out of an apartment be expected to operate under the same rules?

      ...because the vast majority of those rules involve running an operation with many multiple temporary renters in one (or more) building(s)?

      I perfectly understand the need for basic health/safety regulation - e.g. providing sufficient fire protection (smoke detectors, extinguishers, etc), having at least a basic usable map detailing the emergency exits, not having an apartment full of black mold (or worse), etc.

      So what, above and beyond the basics, would be required for someone temporarily letting their apartment?

      --
      Quo usque tandem abutere, Nimbus, patientia nostra?
    3. Re:So? by barc0001 · · Score: 5, Insightful

      Because one home/suite/room does not a hotel make? If anything they should be regulated as a B&B:

      http://vancouver.ca/doing-business/bed-and-breakfast-business.aspx

      Require a business license and whatever inspection is needed for the B&B and then let them get on with making a go of it.

      But to say that someone renting their coach house or basement suite out for the weekend should be subject to the same obligations as a 1000 room hotel is kind of insane. It's already perfectly fine to rent a property out for more than 30 days but shorten it to a weekend and suddenly you need to comply with more regulations?

      Sounds to me like cartels don't want competition especially when it's desperately needed.

    4. Re:So? by afidel · · Score: 2

      I've been staying at places through VRBO for nearly 20 years, I doubt that anyone knew I was a temporary renter unless they're really familiar with their neighbors or were directly involved in the rental activity (I've been told to "see Clara next door for the keys" type of things multiple times). Just because there are assholes out there doesn't mean we should try to shut down an entire industry.

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      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
  3. Good idea, but... by DontBeAMoran · · Score: 2

    I think they're taking the wrong approach here. They should be promoting their services as being of constant quality in a business setting, unlike the competition which are just a bunch of people sort-of renting places in their own homes.

    Would I stay in a stranger's home? Not even if you paid me.

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    #DeleteFacebook
    1. Re:Good idea, but... by swb · · Score: 3, Insightful

      It's wrong on every level. When your big idea is to maintain your cartel status by regulating the competition at every government level it's obvious that your competition is onto something and you are morally and intellectually bankrupt.

      This is a snapshot of so many things that are wrong with America:

      1) Excessive government regulation -- that it's even possible to regulate a business into oblivion shows that we have too much regulation. Regulation in and of itself isn't bad, but it should be kind of a reaction to innovation to smooth it out, not so extreme that it snuffs it out.

      2) Excessive government influence -- obviously the hotel cartel is only capable of accomplishing this because of excessive corporate influence over government. Money buys legislation.

      3) Rent-seeking cartels -- that an entire "competitive" industry is lining up to defeat a business competitor via regulation instead of promoting why they are better than the upstart shows how intellectually bankrupt American business is. This is your big idea?

    2. Re:Good idea, but... by david_thornley · · Score: 3, Informative

      On the other hand, there are reasonable regulations AirBnB should have to abide by. They're half of a publicly available commercial hotel service, and can't operate without the other half. While some of the regulations are doubtless there to protect the hotel business by setting up barriers to entry, others are not.

      The AirBnB system, as a whole, needs to avoid illegal discrimination. It needs to comply with local zoning. The rented-out units need to be in safe condition, and as advertised. There may be other local requirements.

      Currently, AirBnB is in the Uber situation of being able to compete by evading the normal regulations. It is listing places that are not legal to hire out as short-term accommodations. If AirBnB is able to come into conformance with reasonable regulations, that's great.

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      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
    3. Re:Good idea, but... by Mr+D+from+63 · · Score: 4, Insightful

      It's wrong on every level. When your big idea is to maintain your cartel status by regulating the competition at every government level it's obvious that your competition is onto something and you are morally and intellectually bankrupt.

      The regulations in existence didn't come at the behest of the hotel industry. But now they they must operate under them, they SHOULD use them to protect themselves. Why would they agree to operate under those regulators while a growing competitor doesn't have to?

      If you don't like the regulations themselves, then tell us which ones to get rid of and why.

    4. Re: Good idea, but... by Anonymous Coward · · Score: 5, Insightful

      If the dwellings are already deemed illegal by current laws to rent out, you don't need more regulation. You just need to enforce the existing laws.

  4. Home or Hotel by Anonymous Coward · · Score: 2, Insightful

    If you are letting a friend sleep on your couch and he buys a pizza, that is not a business and is not tax to report.
    If you own a couple houses, you are renting them out by the day/week that is a hotel business.
    Do you remove ALL the rules for the Hotel industry? or Do you make the "NEW and IMPROVED" business model abide by the rules built up over the years?
    You either let them all run free, or make them all abide by the rules. You can't have it both ways. Here in Florida, a lot of things are based on tourist taxes.
    So, if you don't pay hotel taxes, you can be a lot cheaper. If you don't have all the safety equipment hotels have, you can be cheaper.
    If you ..... you can be cheaper.
    Is that really fair?

  5. Land Of The Free Home Of The Brave by Crashmarik · · Score: 4, Interesting

    Just love how protecting us from ourselves always seems to protect large interests from anyone else making money in their racket.

    1. Re:Land Of The Free Home Of The Brave by Baron_Yam · · Score: 2

      Unfortunately, in a large and complex society it is unreasonable to expect everyone to question everything all the time - it's too easy for people to avoid the problem of a 'reputation' given a large enough population and you can't spend all your time doing background checks on everyone when there's no place keeping trustworthy records and adhering to record keeping standards.

      That's where regulation comes in - everyone agrees on standards, which are enforced by a standards body, and violators deal with the legal system upon discovery.

      Yes, this makes it more difficult for 'little guys' to enter the market, and yes this gets abused by the larger players to make it even more difficult... but if you throw out such regulation you do NOT get a libertarian paradise - you get the lowest common denominator and nobody setting a 'floor' for just how low that can go, and then when enough people have been screwed over you get the public screaming for regulations.

  6. More regulations? by whoever57 · · Score: 4, Interesting

    So those anti-regulation Republicans will shun this, right?

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    The real "Libtards" are the Libertarians!
  7. Mmmm by nospam007 · · Score: 3, Insightful

    "the organization is planning a multi-pronged attack at local, state, and federal levels..."

    The word you're looking for is 'conspiracy'.

  8. The biggest lie americans believe by jediborg · · Score: 4, Insightful

    Is that big corporations want a free market so they can 'run roughshod' over the people. Nothing could be further from the truth. Big corporations want Big Government regulators that they can influence and control with their money and political connections. This gives them an unfair advantage in the marketplace. Some refer to this as 'regulatory capture' as if it sometimes happens by accident, when in reality these bureaucracies are designed from the very beginning to be 'captured'

    Big corporations are scared shitless of the Free Market. The Free Market is what allowed a small upstart company like netflix to destroy a juggernaut fortune-500 company that was blockbuster. The free market was what (almost) put kodak out of business. They refused to invest in the burgeoning digital camera market, trying to prevent it from happening and doubling down on film cameras. Thats not what the market wanted and they got put in their place.

    If you fear the immense corporate power that exists in the world, do the one smart thing. Advocate for the abolishment of as many national regulations as possible, and try to remember there is a difference between a regulatory LAW - written, debated, and passed by your elected representatives and signed by an elected executive, and "regulator agencies" run by unelected, unaccountable bureaucrats which get to write their own "laws" (regulatory codes), enforce them, and sometimes even adjudicate them.

  9. Everyone's dirty. by wickerprints · · Score: 5, Insightful

    The hotels are dirty: they pay extremely low wages to cleaning staff, while charging exorbitant prices for rooms, and AirBnB is of course a threat to that business model, so their solution is to force them to compete under the same regulatory environment.

    AirBnB is dirty: the company doesn't give a shit about party houses popping up in desirable neighborhoods that regularly violate noise ordinances. In their view, that's a local law enforcement problem. That's the next door neighbor's problem. They profess to care, but only pay lip service. AirBnB turns a blind eye to developers and landlords (who are already insanely wealthy) turning their properties into unofficial hotels, causing rents to skyrocket for people who actually live in the area. And let's not forget: AirBnB lobbied--HARD--against initiatives to prevent this kind of abuse of the housing market. And they won.

    Local government is dirty: politicians lie, cheat, and do backroom deals to get on whatever side of an issue that brings them the most campaign money. In San Diego, the city is proposing yet another "transient occupancy tax" hike to finance all kinds of projects that they should be financing by taxing the entities that stand to gain most from those projects. But they won't because it's political suicide, so they always pick the easy target: out-of-city tourists. Comic-Con is a huge draw and the city milks the attendees for everything they can. Hotel costs are out of control, and that just pushes more people to use AirBnB. Why rent a $400/night hotel room when you can get a whole house for less than half that rate?

    The landlords are dirty: they only care that they can rent out their properties with AirBnB at over twice the prevailing monthly rent in the area. They don't give a fuck about noise complaints. Not their problem as long as the city keeps saying they have no enforcement power. They just see the money rolling in because it's completely unregulated.

    And as always, who suffers? Regular property owners and renters. Middle class people who are priced out of the rental market because $2500 or more per month for a 1 bedroom apartment is obscene.

    Fuck all of you: hotels, AirBnB, greedy landlords, the city.

  10. Hotels lost me with "resort" fees by Snotnose · · Score: 2

    The wife and I seldom use the pool, never the gym, never the masseuse. We want a place to stay while we either spend the night, or spend a couple days exploring the area.

    You want to charge a fee, charge it when I go into the pool. Or when I go into the gym. Or when I go wherever. But charge me for shit I don't use? Fuck that.

  11. Ecenomic Darwin by TiggertheMad · · Score: 2

    Why shouldn't someone operating a hotel out of an apartment be expected to operate under the same rules?

    I can counter with an equally valid, 'Why should they?'

    They are not a hotel. If I rent let my neighbor do their laundry in my washing machine once in a while, am I a Laundromat chain? If I drive a friend to the airport and hit them up for some gas money, am I a taxi service?

    Now, you might counter with some concerns that they need to be regulated in order that AirB&B suites are safe and follow rules governing proper business practices, and that is a fair request. In the next century, everything is going to become micro-transactional, and there needs to be a whole new set of laws and regulations that govern these businesses that are separate from traditional business regulations.

    That does not mean that we should treat them like traditional businesses because it is convenient. The real story here is that existing vested interests are trying to use monopolistic practices to keep a rival with a possibly better business plan down.

    If these Dumb fucks running big hotel chains were at all smart, they would just open their own AirB&B service to compete. If AirB&B is truly a threat, they should just adapt, and start stealing market share from Hotel chains that don't.

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    HA! I just wasted some of your bandwidth with a frivolous sig!