Web firms have unfair advantage says hotel boss

Saturday, 13 Jan, 2014 0

Online accommodation providers such as Airbnb should be regulated in the same way as traditional hotel groups according to the CEO of InterContinental Hotels Group.

Citing Airbnb as an example, IHG’s Richard Solomons said traditional hotels are at a "disadvantage" compared to less labor-intensive internet ventures.

Conceding that the Airbnb platform is an "an interesting concept," Solomons would like to see a level playing field for all accommodation firms.

"What about fire and safety, food standards, what about security issues and cleanliness – all those things that we as hoteliers are required to keep to a standard? What about paying tax?" he said.

"Governance and regulation needs to treat online businesses the same way as existing businesses so that existing businesses are not put at a disadvantage."

Based in San Francisco, Airbnb matches travelers with accommodation ‘hosts’ who rent out their spare rooms, apartments, villas and houses, and the company claims to have over 500,000 listings worldwide on its website as of September 2013.

An Airbnb spokesman said most hosts only rent out space in their home occasionally to visitors and the website urges all hosts to comply with relevant local tax and housing laws.

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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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