Airbnb’s Legal Problems and Challenges
Abstract
Airbnb is suffering from many troubles since the long span of time. Few problems are common in China, France, and the USA. Ad campaigns of Airbnb are creating problems for itself. There are many platforms provided by Airbnb which allows individuals to give their apartments, houses, and rooms to tourists. This type of business is not illegal but there are inevitable issues which can become an obstacle for Airbnb such as there is a tax issue, many tourists or visitors have to pay a tourist or hotel tax when they rent out any hotel room or an apartment. Similarly, every country has its local housing laws and regulations which have to be followed to avoid unnecessary conflicts. Airbnb is continually changing its political strategies just to save the economy, and international strategies are not going in favor of Airbnb.
Ethics and Business
The whole hotel industry became an opponent of Airbnb because Airbnb helps tourists or visitors to find affordable accommodation in their desired locations without mentioning the cost of hotels and their costs, therefore while paying bills, visitors face many problems. Hotels are continually threatening the business of Airbnb and its future, in April, an economist reported that if the immoral act of Airbnb will continue to grow at the same rate, then by 2016 its 10% share with hotels will be taken out.
Airbnb’s legal problems in the US
In New York, it is as of now amidst a delayed legitimate debate with the lawyer general, while experts in San Francisco, Malibu, New Orleans and different US urban communities are additionally rising shutdowns. In France where Airbnb has been halfway reprimanded for expanding rents city authorities have made another lodging law prohibiting standard here and now letting of rooms without Europe is the highest priority on the rundown – where Airbnb have as of late been fined €30,000 for violating vicinity tourism laws – the association is in like manner under ambush in a creating number of various urban territories
Airbnb represents its business as an issue of discourse. Much as it advances “living like a neighborhood” in the urban areas where it profits, the organization says it, at last, has no obligation regarding what occurs on the earth, much the same as a site with remarks.
If Airbnb is viable, and a couple of authorities think Airbnb has a better shot, CDA is planning to free the association of obligation concerning the influence of Airbnb’s business, and SCA is planning to shield urban zones from discovering has, and in like manner Airbnb, reliable. Governments all through the United States would be vulnerable to control the amount of this company postings or compel of the guest corporation that they bring. It’s a solid mixture of offensive driving forces. (Time.com, 2017)
Airbnb continues displaying its company as low-effect, consist of normal has sporadically rented their specific apartments. A current Airbnb gives an account of its company in the show of Lisbon that “various postings on Airbnb in Lisbon are neighborhood inhabitants’ family,” comforting per clients that “In Lisbon seventy two percent of hosts in Airbnb have only a solitary posting.” But being an honest and reasonable with reality: My openly accumulated educational gathering exhibits that the 28% of hosts with more than one posting (who can be seen as “business” has) speak to 66% of Association’s company in Lisbon.
Also, remembering that Airbnb claims that “seventy percent of guests of Airbnb stay outside spots instead of the regular vacationer in Lisbon,” my study exhibits that the bigger piece of tourist occurs inside the two main areas of Santa Maria Maior and Misericórdia, a scope of just around 6 square kilometers. In May 2015, Number of postings in the little town of a large segment of a million-individual creating from 5,500 to more than 10,000 today, a primary influence is certain. João Seixas, a teacher of geography at the New University of Lisbon, and his accomplices are “particularly stressed over what is rapidly occasion to the recorded point of convergence of our brilliant city and town. Since last three years, around one-quarter or even 33% of the hotel has changed its stock limit, generally toward cash related theories and rentals with the short span of time.”
Sharing a home is a long-time trend in America. Since long time home owners let other people live in their homes instead of hotels sometimes for house chores and sometimes for money. At this time, Airbnb is playing a role as a sharing economy technology which became a link between travelers and home renters. Such online platforms help tourists to select their living place of their own choice whether its hotel or someone’s home. But Airbnb doesn’t mention all the expenditures a tourist or renter have to pay. Therefore, this issue is becoming very prominent in different cities of America, for example, Chicago, New York, and San Francisco.
Airbnb faces Legal Challenges in China
Airbnb may have bumbled somewhat a week ago when it revealed its new methodology for vanquishing the Chinese market – which incorporated a multiplying of its venture there and an important new name: Abiding. This is the place the issue lies. The name isn’t anything but difficult to state for Mandarin speakers, and many Chinese netizens have responded adversely. China has a unique culture as compare to other nations in the world. A cultural study before implanting a business is a must do for any organizations. Cultural misinterpretation could lead to some serious issues.
As one Weibo client put it: “Airbnb has given itself a doltish Chinese name and even shot an MV (music video) for it. It is much the same as an outsider attempting to talk poor Chinese.” However, notwithstanding the name issue, Airbnb may be preferred situated over different US tech organizations that have tried (and fizzled) to split China – most strikingly Uber. As an issue of fundamental significance, there is the bigger size and improvement potential of the Chinese travel grandstand. In 2015 vacationer using totaled $500 billion and is depended upon to significantly increment to $1.2 trillion, according to a China National Tourism Administration report.
A large portion of this travel is occurring locally, as well. As per the report, the quantity of excursions taken inside China came to an amazing 4.1bn of every 2015, a normal yearly development of 10.2%.
The home-sharing business sector in China is still in its earliest stages, along these lines, in spite of the fact that Airbnb just has 80,000 postings there up until this point, its domestic rivals are not that a long way ahead. Xiaozhu, its most direct equal, has more than 100,000 postings, while Tujia, which is to a greater extent an occasion rental site and regulates the administration of its properties, cases to have 450,000 postings. Recently Airbnb has to face many problems in the Chinese market. They are facing challenges and authorities are continually finding clear answers regarding population management, taxes and other stuff of the client to client business model.
It also has to face problems because of its different background, comparatively others, Airbnb face many difficulties in adapting Chinese environment. It is becoming quite difficult for Airbnb to establish friendly relations with authorities and people of China because it’s a foreign internet company. And these challenges are not limited to one country only, Airbnb has to suffer these problems even in the international market. But the main benefit of these hurdles is an experience Airbnb has gained from international markets which might help it to adapt Chinese environment. Airbnb has to work very hard just to gain the trust of its users and regular authorities of the Chinese market. Negative reviews of the international market about Airbnb became another hurdle in its success. Their success in Chinese market depends on the collaboration and understating of the Chinese people and their demands and needs.
Airbnb is in continues crackdown in Paris
French government has busted homes and apartments in the total capital just to get hard on Airbnb because they are not following rules and regulations of the country. Recently they have carried out raids on apartments in the first and sixth arrondissements because these both areas are attractive for tourism and tourists usually stay in these places. The main reason for this raid was to discover home renters because their attempts are to become rich by renting out their apartments and flats for up to 120 days which is against of their country rules. The Airbnb has faced these problems not complying to the local government regulations which is a very important factor to consider, when expanding a business to a different country. They didn’t touch those who rent their homes for one or two weeks when they go on visit or vacations.
It was told by the town’s hall housing chief that they wanted to discover those professionals who violate rules and rent their flats for the whole year or those who buy a house or an apartment merely with the purpose of converting it into a tourist place. And they found many individuals who violate rules of the country and rent out their homes without following any rule. Recently a survey conducted and it was found that on Airbnb forty-four percent of the home renters are available permanently. Along those landlords, Airbnb also had to pay a hefty fine. Individuals who rent their homes more than three weeks had to pay fine up to €25,000 but still it’s not an enough amount according to authorities however they are deciding to increase this number around €100,000.
People of Paris are showing their frustration with the constant pace of Airbnb residents carting baggage up the stygian of their flats buildings. France Blue told that we are getting more complaints from residents because of Airbnb. Paris is already the very expensive market, and now Airbnb is adding these housing challenges for tourists which make difficult for a tourist to enjoy their tour. Airbnb was launched in 2008, and in the starting period it has some forty million users but with the passage of time its quality is decreasing, and the whole hotel industry is becoming rival because it violates tax laws and country laws.
Airbnb recently accepted to redeem tourist tax to France and Paris from every booking it will get. A study was conducted in November, and it was found that Paris is the world’s biggest market of Airbnb. It has 3.9 million users using the service of Airbnb, thus losing the market of Paris is the biggest loss for Airbnb. Paris government has made new law in June which says that whoever will rent out their flats in Paris using services like Airbnb will have to get a registration integer. The main reason behind this law was to make sure that no one rent out their property for more than 120-day limit. But there is also good news for home owners in Paris that the rates of local tax will remain same for everyone. Airbnb is in continued pressure from different cities almost 17 cities, and Paris is one of them, it’s trying to control its rentals according to local rules. On the website of Airbnb, Paris offers more than 60,000 homes. Hence it is clear that business of Airbnb in booming in France’s capital. It’s the one of the world’s biggest tourist market, and Airbnb can’t lose it at any cost.
Political Economy
All countries are not against of Airbnb, their reaction to Airbnb is positive to some extent. This February, Airbnb passed as an Airbnb-friendly law by Amsterdam, keeping the sharing economy of the city in mind Amsterdam became a first city which passed Airbnb when legislation was created. This city allows natives to give their homes and apartments to four visitors at a time for up to two months. Nevertheless, all type of taxes such as tourist tax should be paid by an owner who rents out his home or an apartment. Founders of Airbnb and their expert economists are spreading their business in such cities which can give them maximum benefits. (SmarterTravel, 2017).
Many home owners think they could get in trouble for renting their homes through Airbnb, but it depends on local laws. Airbnb doesn’t follow local laws, regulations, and rules of countries that are why it has to face such problems. Airbnb put home owners in trouble because it becomes a risk of punishments from government authorities. Recently it was found that in San Francisco, it is entirely banned to rent out homes without an expensive permit and those who violate this rule, they have to face a heavy punishment and penalty from high authorities. The study has found similar cases in New York; they also do not allow home owners to rent out their property by using Airbnb without any legal permission.
Penn Schoen Berland partner of Burson Marsteller conducted a timed poll on the gig economy and realized that fifty-six percent of people share their homes and made money, all of them says Airbnb is an entirely different thing from vacation and hotels rentals and should not be imposed by same regulations. Those who rent out their homes and apartments were more positive about their financial condition than the general people. 63% people believe that their financial condition would get better in the coming year. San Francisco attempts to abandon Airbnb was overcome by fifty-five percent to forty-five percent. Lehane states this defeat of San Francisco as “Coming out of that, the light bulb went on over our head.” A lot of people are inspired and have the self interest in their economy. Thus, huge community supports Airbnb because of its political economy strategies and benefits it gives to home-renters. (Miller, 2017)
Response of Airbnb to all these challenges
Keeping the need of change in mind, Airbnb invigorated its terms and conditions of the organization to let its customers more cognizant of neighborhood charges and laws, putting the stress on the host’s commitments to consent to them. When doubt hits, most has had not been charging their guests lodging charge, also submitting it to the town. To mention this, in a couple of domains Airbnb have begun managing gathering hotel evaluate for the host’s advantage, which implies costs in a couple of spots will increase. They have focused on the international strategy to view cultural values more closely, along with the regulations of local country. Beginning on July 1, the association has been adding few amounts around 11.5% to hotel evaluation to all reservations made in Oregon, Portland, and it has in like manner began gathering charges in San Francisco. Likewise, the association is attempting to mastermind a practically same game-plan in New York. (Harvard Business Review, 2017)
Airbnb is planning to take revenge from San Francisco and take it to court and claims that this city is not following laws and violation is very open. Section 230 of the 1996 Communications Decency Act (CDA) says that the owner of the website is not responsible for the content given by its use on the site. This law protects newspapers, bloggers, and locations like YouTube, Yelp, and Craigslist. The 1986 Kept Public services Act provided that before the government is entitled to information of the consumers of a web service, it must have a particular subpoena. Therefore, according to its international strategy and under these laws, Airbnb is claiming protection (Anon, 2017). Airbnb planned to make home sharing groups; these groups are made to push company’s mission to the government. In 2008, it was founded by three friends just to make money and to become one of the best travel brands in the world. These strategies help Airbnb to regain its lost reputation in three continents.
However, all would never again be spotless reviling for Airbnb. The business of Airbnb is booming currently in Europe, wherein Barcelona, Berlin, and, to a lesser volume, Paris is discovering a fresh out of the box new decisiveness in adapting to the blast of outing rentals. In the interim, the leaders of 10 noteworthy markets the world over are starting an endeavor weight to gather a typical reaction to the inconveniences that Airbnb brings. Such patterns are very much planned. Without them, accurate explorer reports might be sold at the cost of people that recall greatest: genuine natives.
However, what some voyagers can “remain there” sooner than Airbnb acknowledges that it has developed a mass tourism vehicle and that its clients are explorers. Like various components of the vacationer endeavor, Airbnb has to wind up a double-edged sword. Guests get new stories and create in real money, however as their numbers develop, they disintegrate the very climate wherein they lounge and undermine the bearableness of the town for occupants. (Fox Business, 2017)
References
Anon, (2017, July 23). Challenges faced by Airbnb in China. Retrieved from http://www.businessinsider.com/three-challenges-facing-Airbnb-in-china-2015-8.
Fox Business, (2017, July 23). What challenges does Airbnb face? Retrieved from http://www.foxbusiness.com/markets/2017/02/06/what-challenges-does-Airbnb-face.html
Harvard Business Review, (2017, July 22). Airbnb is facing an existential expansion problem. Retrieved from https://hbr.org/2016/07/Airbnb-is-facing-an-existential-expansion-problem
Miller, R., (2017, July 22). Airbnb and Uber face some harsh realities. Retrieved from https://techcrunch.com/2014/10/08/Airbnb-and-uber-face-some-harsh-realities/
SmarterTravel, (2017, July 23). 7 Airbnb problems and how to solve them. Retrieved from https://www.smartertravel.com/2017/06/19/7-Airbnb-problems-solve/
The Verge, (2017, July 23). Airbnb’s worst problems are confirmed by its data. Retrieved from https://www.theverge.com/2015/12/4/9849242/Airbnb-data-new-york-affordable-housing-illegal-hotels
Time.com, (2017, July 23). Airbnb’s legal challenges get real. Retrieved from http://time.com/money/4541529/Airbnb-legal-challenges/
