Airbnb gets to first Base with hostelsJanuary 23rd, 2015 | | Accommodation
As predicted, the lure of Airbnb’s low commission rates and huge traffic volumes has attracted some of Australia’s smaller independent hostels into listing with them – but it doesn’t stop there, one of Australia and New Zealand’s largest hostel chains is now listing on the site.
Big Hostel and Kings Cross Backpacker have recently listed their properties on Airbnb while Base Backpackers have listed a bed for their Sydney property in what is being called “a test” by the company.
San Francisco based company Airbnb has over 1,000,000 listings and has serviced 25,000,000 guest bookings since starting in 2008. The company has stormed the headlines around the world with uproar from the accommodation sector and local councils due to the unregulated nature of the sites listings. Our own Backpackers Operators Association NSW has been active in the fight against Airbnb citing the sharing economy as part of ‘the black economy’ and accusing the site of helping to fuel illegal accommodation.
Perhaps the biggest reason hostels are starting to list, is Airbnb’s attractive 3% commission rate – compared to the 12% paid for standard listings with other OTA’s like Hostelworld and booking.com. Compare this with over 20% or higher for bricks and mortar agents – you can hardly blame the properties for signing up – can you?
Written by Thomas Wheeler
Is listing your property on Airbnb supporting ‘the black economy’ or should it just been seen as just another way to fill beds?