Airbnb defends company days after Abta chair blasts 'sharing economy'
Sophie Griffiths
A senior figure at Airbnb has defended the sharing economy, insisting that the property rental company “welcomes” ongoing concerns surrounding the growing sector.
Speaking at the 2014 World Youth and Student Travel Conference (WYSTC) in Dublin, Airbnb hospitality innovator Clement Marcelet told delegates he was proud of what Airbnb had achieved, stating: “We believe it’s a completely new way to think about hospitality.”
His speech came just days after Abta chair Noel Josephides closed the Abta Travel Convention with a warning about the dangers of the sharing economy.
Citing companies such as Airbnb, Josephides said the growth of the sector was damaging Britain’s economy.
“Classified adverts have always been there, and we tolerated it. But what companies like Airbnb have done is use the internet as a platform to allow the black economy to grow and grow,” he told Abta delegates.
“The majority of those letting their property don’t declare their income. Can you imagine the economic loss of these people who are not paying taxes? Why should legitimate businesses have to be leaden with taxes?” Josephides added.
“The government is sleepwalking towards its own destruction and that of the businesses that provide them with their income.”
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"Taxation is a very common question from our hosts. We we always remind them that they need to pay taxes"
However, Marcelet told delegates at the WYSTC: “Taxation is a very common question from our hosts. We don’t want to be seen as doing anything illegal and we always remind them that they need to pay taxes.
“These regulations differ from city to city so we now have a blog where we hope to help answer some of their questions. Having our team stationed around the world also helps us ensure we’re aligned with local regulations.”
Meanwhile on Monday the government announced it would be launching a significant new initiative which is expected to embrace businesses such as Airbnb, in a bid to boost London’s growing technology sector and to encourage entrepreneurism.
Business and enterprise minister Matt Hancock who launched the study told the Sunday Telegraph: “These new business models put money into households the length and breadth of the country. I want to make sure that the UK is front and centre of that, competing with San Francisco to be the home of these young tech start-ups.”
Speaking at the WYSTC, Kerry Tate, UK and Europe sales manager at Topdeck Travel admitted: “We’re definitely seeing trends heading towards online and direct. Peer to peer is the absolute driver.”
Travis Pittman, chief executive of TourRadar, a website which allows customers to compare and book group tours, agreed, adding: “This generation more than any other don’t like being sold to.”
Airbnb facilitates accommodation for some 150,000 guests every night and has 800,000 listings.
Macelet attempted to defuse criticism of the lack of regulation which the sharing economy sector is currently subject to, insisting he was keen to have an open dialogue with those concerned.
Sophie Griffiths
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