Local hotel officials are changing marketing patterns and bracing themselves for a change in the marketplace after seeing Airbnb thrive.
Airbnb is a company that allows owners to rent their homes online at a fraction of the cost of hotels. Analysts predict it will be the largest hotelier in the world by the end of next year. But local hotel owners are worried it will soon cut into their profits.
“It comes down to economics," said Keith Overton, preesident of the Tradewinds Island Resort on St. Pete Beach. "If you can stay for a lot cheaper in somebody’s living room, or an extra bedroom, you’re going to lose some market share to that. I think it’s formidable, and I think it’s here to stay.”
Overton also sits on the board of the American Hotel Lodging Association. He is calling on lawmakers to require Airbnb to pay the same bed tax that every other hotel in the area is required to pay.
“This is an issue that’s got to be addressed at the national level with the federal government. It’s like Uber with the taxi drivers," Overton said. "In the end, what we have to do is have our voices heard, and make sure the legislators who represent us understand the issues.”
Overton says he welcomes Airbnb to the marketplace if the company follows the rules.
However, Airbnb has no physical properties to pay taxes on.
“The reality of Airbnb is by not having a physical location, they’re able to avoid the 5 cents on every dollar that our physically standing hotels pay to market travelers and leisure guests and folks to come to our market to experience all that we have,” said Bob Morrison, executive director of Hillsborough County Hotel Motel Association.
Airbnb has agreements with certain cities to collect local taxes from owners and pay directly to the municipality. But in most cases, Airbnb tells owners on the website: “We expect all hosts to familiarize themselves with and follow their local laws and regulations” when it comes to paying occupancy taxes.
Overton says regardless of what happens, many resorts, including Tradewinds, are marketing toward millennials to try to steal them back from room sharing options like Airbnb.
First, Tradewinds is developing a new phone app geared toward millennials who want to book fast online. The resort is also offering new packages to the younger crowd.
“We have a craft brewery tour package we sell," Overton said. "We have a pub crawl on our property, and we do two wine tastings a week. We’re trying to do things we know appeal to millennials.”
Overton isn’t as worried about the larger hotels when it comes to Airbnb. But he believes the smaller mom-and-pop motels will hurt the most.
“Ultimately, they’re going to start feeling it, and they’re probably not even going to know why it’s happening," Overton said. "So our job as an industry, and at American Hotel Lodging Association, is to foresee that and act now to get legislation in place that prevents that.”