Airbnb, R.I.P.
- Thread starter Darts
- Start date
If hotels can survive, AirBnB should be able to.
Exposed the business model? A once in a generation pandemic is claiming all types of non-essential businesses. This is a Black Swan event that no business is prepared for. AirBnB's business models is ingenious... it just doesn't work under global pandemic and lockdown conditions.
Businesses are just sleeping, not dead.
They are enjoying a government paid extended holiday till they start up again.
https://www.youtube.com/watch?v=SGyOaCXr8Lw
The economy is merely on pause.
They are enjoying a government paid extended holiday till they start up again.
https://www.youtube.com/watch?v=SGyOaCXr8Lw
The economy is merely on pause.
For the most part this is true, but I don’t think restaurants are simply on pause collecting government welfare. A 75% wage subsidy to operate a closed business doesn’t go a long way towards survival.
For the most part this is true, but I don’t think restaurants are simply on pause collecting government welfare. A 75% wage subsidy to operate a closed business doesn’t go a long way towards survival.
It appears that in many urban centers many entrepreneurs have bought condos and furnished them for explicitly renting them out on AirBnB. Some people have bought houses, etc. in tourist areas with the idea that AirBnB would be supplemental income.
I don't know the extent of this, but it will put extreme stress on these entrepreneurs the longer this goes on. AirBnB is no longer just somebody renting a room or a sofa bed at their house.
That's true and those hosts may go broke, but AirBnB can survive without them. They will have a rough few years ahead of them, but under normal societal conditions the business model is a proven success.
It was never a good idea to buy property to use exclusively for short term rentals given the hostility from the hotel industry and governments that can change legislation at any time. Too much invested... unless you could cover costs when converting the properties to long-term rentals. Many of these will be negative cash flow if they become long term rentals.
It was never a good idea to buy property to use exclusively for short term rentals given the hostility from the hotel industry and governments that can change legislation at any time. Too much invested... unless you could cover costs when converting the properties to long-term rentals. Many of these will be negative cash flow if they become long term rentals.
I will deviate slightly from the topic and apply some of the same logic to airlines. Airlines might go bankrupt during the crisis, but there will still be airplanes ready to go when the economy recovers. It is that simple.
It's not an easy problem to deal with, but I do think industry bailouts protect the management, the stockholders and the unions at the expense of the public. If you know you're in a risky industry, perhaps you stop buying back shares and carrying a lot of debt.
It's not an easy problem to deal with, but I do think industry bailouts protect the management, the stockholders and the unions at the expense of the public. If you know you're in a risky industry, perhaps you stop buying back shares and carrying a lot of debt.
No short term rentals as of April 4th (exceptions to hotels, motels and student residences).
https://twitter.com/QueensParkToday/statuses/1247165688164126721
https://files.ontario.ca/solgen-oic-closure-nonessential-business-2020-04-03_0.pdf
https://twitter.com/QueensParkToday/statuses/1247165688164126721
https://files.ontario.ca/solgen-oic-closure-nonessential-business-2020-04-03_0.pdf
F*ck AirBnB and those have abused their platform to enrich themselves and in the process to f*cked renters, communities and society.
New regulations have been put in place in Toronto, yet they were challenged at the LPAT.
Ghost hotel operators, yes that is what they are, LOST. The regulations STAND.
Yet, they filed an appeal in a court of law. They do not want to follow the regulatory framework put in place.
TO MULTIPLE PROPERTY OWNERS: YOU CAN ONLY RENT OUT YOUR PRINCIPLE RESIDENCE, AND NOTHING ELSE FOR LESS THAN SIX MONTHS.
So F*ck you and obey the law.
New regulations have been put in place in Toronto, yet they were challenged at the LPAT.
Ghost hotel operators, yes that is what they are, LOST. The regulations STAND.
Yet, they filed an appeal in a court of law. They do not want to follow the regulatory framework put in place.
TO MULTIPLE PROPERTY OWNERS: YOU CAN ONLY RENT OUT YOUR PRINCIPLE RESIDENCE, AND NOTHING ELSE FOR LESS THAN SIX MONTHS.
So F*ck you and obey the law.
That's unfortunate. AirBnB serves a great need. It's so popular because everyone that vacations or travels can tell you how awesome it is to use their service.
You want hotels to remain a monopoly just like taxis wanted maintain one and crush uber?
I believe that vast majority of principle residents, whether they are owners or long time tenants, don't want to see their street, their building, their neighborhood or their community being abused for profit by non-resident property owners by short-term renting the non-resident properties to unending revolving door of strangers.
That would classify these non-resident property owners as basically hoteliers.
Want to short term rent? By all means go ahead ..... but ONLY in you PRINCIPLE residence as per law.
Do you how many destination city's inner cores have been destroyed by AirBnB type short term rentals?
I'm not sure anyone in the U.S. is going to be selling anything at a good price for quite awhile. I suspect similar for Canada.
Airbnb isn’t dead. It’s a platform - they are not a bricks and mortar business like the hotel industry. Sure, it’s taking a major beating profits wise right now, but it’s not like Starwood Hotels with over a thousand properties sitting mostly empty.
However, you will probably see City Hall Toronto taking this opportunity to enforce its Short Term Rental by-law, which was designed to mitigate the dearth of rental supply.
Additionally, what you will also see is that more Toronto condo owners will pull units off of Airbnb and migrate them over to long term rental market.
Give it a year or so until the worldwide economy rebounds and travel to Toronto increases. You will see condo owners jumping back into the Airbnb market real fast.
However, you will probably see City Hall Toronto taking this opportunity to enforce its Short Term Rental by-law, which was designed to mitigate the dearth of rental supply.
Additionally, what you will also see is that more Toronto condo owners will pull units off of Airbnb and migrate them over to long term rental market.
Give it a year or so until the worldwide economy rebounds and travel to Toronto increases. You will see condo owners jumping back into the Airbnb market real fast.
