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Posts Tagged ‘hotels’

How Much Will Airbnb Damage the Hospitality Industry?

Fancy pants.We’re going to take a wild guess here: your travel and hospitality clients hate Airbnb.

Why wouldn’t they? Vacationers and business travelers alike are quite keen on the idea of saving time and money by renting someone’s room for a few days. Despite the fact that this subletting practice is illegal in some states, recent cases reveal that the government and the hotel industry may not have much power to stop it.

New York attorney general Eric Schneiderman wants to crack down on Airbnb just like he cracked down on the firms that pay for fake client reviews on Yelp and Amazon, but the courts have told him “not so fast”. And just like the “reputation firms”, these newfangled sublet companies will almost certainly keep popping up.

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Hotels to Increase Fees for Just About Everything

The hotel industry is about to embark on a dangerous PR journey. As the Los Angeles Times reports, hotels expect to boost revenue by 5% in 2012—to the tune of $1.95 billion—simply by increasing the fees they charge customers for everything from baggage handling services to outgoing phone calls. It doesn’t take much PR expertise to know how the public feels about fees.

The public hates fees.

Anyone who has had to shell out $25 for a salad and a bag of chips at a crowded airline counter knows the feeling of being pushed into a steaming cauldron of anger, exploitation, vulnerability and frustration while searching for cash and balancing the carry-on luggage between one’s elbows.

Anyone who has ever looked at a bill, an ATM receipt or a credit card statement and noticed ambiguous or undisclosed fees can relate to the sensation of being punched in the back of the head while walking down some stairs–it’s not much fun!

So yes, the public feels very strongly about the evils of hidden or unexpected fees–no matter how small they may seem. Read more