Airbnb is the Uber of the Parisian Hotel Industry

I don’t know about you, but I am an avid user of Uber. Since 2013 I have used Uber 162 times. Uber is my preferred method of transportation outside of public transportation (most often used on nights out…but that’s another story).

 

Like Uber, Airbnb has emerged as a fast-growing preference among travelers opting for the service over booking hotels for vacations, extended stays, and business travel. In Paris, which is the top destination for Airbnb users, some 50,000 apartments are available to rent this year —compared with just 4,000 in 2012. Last year alone, 527,821 visitors to Paris used Airbnb for their accommodations. 

 

Airbnb, a San Francisco startup, is transforming the way we regard, and book, our accommodations when traveling. So why is it preferred and what is it doing to the traditional hotel industry? 

 

In my limited experience using Airbnb on a trip to New Orleans earlier this year, I found the ease of booking and communication with the owner at my fingertips to be attractive. Additionally, the feeling that you are at home in a new city, getting to know neighborhoods you may not otherwise discover when staying in central hotels, are certainly benefits to this system. I was with a large group in New Orleans, so it also had a The Real World (TV show) feel to it, which was way more fun that splitting up into several rooms with double beds.

 

While battles between Uber and taxi services continue to rage in several cities, Airbnb too is taking some heat from hoteliers -- especially in France. The 50,000 apartments available to rent equate to about 80,000 hotel beds in Paris – so it’s no shock that they are voicing these concerns.

 

Earlier this year, French hotel owners wrote an open letter to France's Prime Minister urging the government to intervene. The French hotelier lobby argued that Airbnb rental sites weren't playing by the same rules, notably regarding taxes, even though they are offering essentially the same service.  

 

Just last week, Airbnb announced a new tourist tax that will be applied per night on all bookings in Paris. They are responding to ongoing heat from the hotel industry and hoping to get the authorities off their back while at the same time contributing to the French capital’s economy and bringing in an estimated €5 million a year. While this sounds like a lot, it will be but a small bump to the visitors using Airbnb, only 83 centimes a night.

 

              

 

Even so, while Airbnb may take a top bookings spot in its number one destination, Paris hoteliers can be reassured that, while they have a bit more competition than before, many tourists still enjoy the luxury of room service, housekeeping, and the traditional hotel experience. Like Uber vs. taxi services, you can expect other city authority figures and unions around the globe to get together in uproar against Airbnb. And while some tourists may become like me with Uber and be very loyal to Airbnb, there is plenty of room and demand for both the old and the new services in the industry.