Tuesday, 20 August 2019

The Sharing Economy: Airbnb changes the travel market forever

Prague Daily Monitor |
19 June 2019

How is it that Airbnb is worth more than most if not all hotel chains, despite only being in existence less than 20 years? Some people call it the Uber of the travel industry. Whatever you think, it is clear that the world is changing and things will never be the same.

Remember when you had to read about hotels in special printed brochures and it was only possible to book a ticket using a travel agent? Apartments had to be recommended by travel agents and were often described as being better than they really were. Airbnb found a way to tap into a long standing demand from consumers for something better. More and more people are looking for an experience rather than just a holiday. Airbnb found a way to both help people make money on unused accommodation and give travellers a better experience.

25% of all bookings for rooms are now made through Airbnb and other portals like Booking.com. There are over 10,000 apartments registered in Prague alone for Airbnb.

Airbnb has become a hot issue in Prague. Property owners who live in their apartments complain of noise, damage, strange people in their buildings, etc. Property investors who rent out their apartments claim they have a right to do whatever they want. Who is right?

The answer is both parties. People who live in a building should feel happy in their home, but investors should be able top rent out their apartments. The government is also unhappy as many investors fail to pay either income tax or the accommodation tax.

The probable future outlook is

- Better dialogue between owners and investors
- Higher building charges for investors to cover the extra costs
- Stricter rules for investors to control their guests
- Tax audits from the government
- Increase in the accommodation tax with stronger enforcement

You might say how does this affect me? Firstly you now have a much wider choice in where you stay and how you enjoy your travels. Secondly Airbnb gives you the opportunity to make more money on your property than from long term rental. Short term rental will increase the income on your property by over 50% when managed correctly. You can do this either by managing it yourself or using a professional property management company such as Honeco. Honeco does everything and offers 24/7 service. You can find out more information at Honeco.cz or come to our free seminar on 27/6 titled "How to make money on your property using AIRBNB". Click here to register.