By New York business correspondent Erin Delmore
Brian Chesky, the CEO of Airbnb, a company that rents out short-term properties, denied that the site is to blame for the housing crisis in places like New York.
The business is under fire for allegedly exacerbating the rise in rent in American cities.
Mr. Chesky refuted the claim that places like New York, which recently passed legislation outlawing short-term rentals, are negatively impacted by Airbnb.
However, he acknowledged that the company’s fame could have “unintended consequences”.
One of the key concepts, in my opinion, is that there will inevitably be unintended repercussions if a technology business places a tool or other item in the hands of hundreds of millions of people. In an interview with the BBC, Mr. Chesky stated, “So we’re always trying to listen, understand if there’s issues, and adapt with cities.”
Since its 2007 launch, Airbnb has been well-known as the shining star of the emerging sharing economy. Through its booking platform, the company currently provides more than seven million residences globally for stays.
In response to new rules in New York City, which prohibit most stays of less than 30 days, Airbnb is making adjustments. The updated guidelines stipulate that hosts must be present for the duration of a guest’s stay, that there can only be two guests overall, and that guests must have access to the entire property. Hosts must register with the appropriate city authorities in order to comply with the rules.
The regulations have essentially eliminated Airbnb’s short-term accommodations in the most populous city in the US; the firm has referred to this as a “de facto ban.” The New York Times reports that up to 10,800 postings would be impacted.
“Was a meaningful percent of our business before the regulation would take place,” according to Mr. Chesky, stays of 30 days or more currently make up the company’s main offerings in New York. Furthermore, Airbnb owns HotelTonight, a hotel booking site, and provides stays in boutique hotels.
Mr. Chesky also notes that while New York may be losing out, nearby towns in Connecticut and New Jersey may be benefiting from an increase in reservations.
“I believe that individuals are still expressing a desire to visit New York. They wish to be able to afford it “Mr. Chesky stated. “Or you’re going to see people travelling to other cities.”
While in New York City, Mr. Chesky unveiled new features for hosts and guests on Airbnb, such as “Guest Favourites,” which list the properties with the best reviews on the platform.
Out of the seven million listings on Airbnb, two million were included. Reviews now include more details about the kind of trip and the type of visitor who visited. Additionally, he unveiled a brand-new listings tab that enables hosts to highlight the features of their homes, such as a recently developed AI-powered photo tour.
