It is amazing the number of bureaucratic hoops we have to jump through before we can establish a new business. We need to register a business name with the government and then there is the need to get council permission to trade from whatever premises are involved. It has to conform to whatever zoning is in place and there is every chance that it will stir a NINBY reaction and there will be protests on the grounds of noise or traffic problems. A huge number of activities are regulated and a license is required to trade.
It seems that Airnb has simply thumbed it's nose at this vast thicket of regulations and setup a business in 34,000 cities spread over 190 nations and now has a turnover of $25 billion. It simply signs up very ordinary people, living in very ordinary houses to offer to rent a room to tourists at a rate well below that charged by the established accommodation industries.
That is the very antithesis of the plan slavishly followed by the hotel and motel chains that trade across the world. They are offering a very predictable standard of accommodation so that it will meet the travellers expectation before they even walk through the door. There is a degree of uniformity in the room size, furnishings and cleanliness that allows the traveller to meet expectations in whatever country they visit.
The Airnb offerings disturb Tourist Accommodation Australia ( TAA ) which is the governing body for the tourist trade. It seems that the main criteria here is price. It is precisely a " lucky dip " when a traveller arrives at the door of the intended host. He or she has no idea of what standard is involved - and even less about the person or family who are to become their landlord for the duration of the stay. They will be asked to write a report after that event and presumable that will be the method of weeding out those who fail to meet standards.
That is a far cry from the impositions demanded of the legitimate tourist accommodation industry. Kitchens are regularly inspected to maintain a clean bill of health and standards are clearly written into operating laws. Fire safety is ensured by regular fire safety checks by the fire brigade and the police respond to any suggestion that drug use is prevalent. The average person has every reason to feel safe and comfortable under the care of a reputable trading chain.
Along with Airnb the taxi trade is under fire from Uber - and once again the lucky dip applies. Those hiring it's services have absolutely no idea what make of vehicle will arrive, nor who will be behind the wheel. That driver will not wear a uniform and none of the background checks necessary to be accepted for a legitimate cab license will have been performed. Once again filing a report on vehicle cleanliness, driver courtesy and ability to perform an adequate service will be the main criteria in judging those offering their cars under the Uber brand.
Surprisingly, few cities seem to have been able to fall back on licensing regulations to to prevent either Airnb or Uber setting up and competing with the industries they tax heavily under their by-laws. Those who have tried have achieved mixed results and in most cases the whole process has devolved into endless appeals and being referred to higher courts. This is not helped by the vast mish-mash of rules and regulations that are intertwined between cities, states and countries on a world wide basis. It seems that each case needs to be settled within the confines of it's own individuality.
Of course this whole new idea hangs in the balance of public acceptability. The lure is paying a lower price for a service, but if some maniac kills and dismembers a family staying under an Airnb roof or a horrific rape and murder is committed by a Uber driver - the whole perception of safety changes.
Precisely the same could happen in a well known motel chain or by a legitimately licensed and uniformed cab fleet driver, but somehow that control lack sticks in the public mind and they become afraid to use the service.
As with all forms of the "lucky dip " - luck is the deciding factor !
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