#this is why we have occupational health and safety regulations folks
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mumbo foreshadowed his own death earlier in the session. the minecart track is very finicky, with lots of levers and powered rails to make sure it works correctly. its the kind of system where if you breathe wrong everything can blow up in your face. multiple times mumbo got overzealous and forgot to check that everything was set back the way it should be which meant the minecarts just ran off the edge instead of gaining momentum. and this was still fine, because it didn't kill any of them.
the thing is though, on the part of the track you're supposed to initially place the minecart on they used a powered rail, but most of the time they had it turned off and just nudged the minecart until it ran onto the loop. but this time, someone had turned it on. mumbo, in his haste to try to kill gem, didn't bother checking if everything was safe. by the time he noticed the minecart was moving on its own it was too late.
#this is why we have occupational health and safety regulations folks#work safe ad but its please make sure all powered rails are turned OFF before placing tnt minecart#mumbo jumbo#wild life spoilers#wild life smp#trafficblr#geminitay
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House Speaker Paul Ryan discusses health care reform (Credit: AP Photo/J. Scott Applewhite)
This post originally appeared on Bill Moyers.
The one question you never hear journalists ask Republicans is why?
Why do so many Republicans want to throw 24 million struggling Americans off the health insurance rolls? Why does the allegedly populist Trump administration submit a budget that slashes job training programs for the very same jobless white folks he claimed to represent?
Why cut Meals on Wheels, child care, after-school programs and learning centers for the poor, affordable housing and aid to the homeless? Why “zero out” occupational safety training and economic growth assistance in distressed communities in Appalachia and the Mississippi Delta (more Trump constituents)? Why slash legal aid and medicine and food for the sick and hungry in the developing world, among many others?
Journalists ask Republicans about policies, mechanisms and money, but those are technical questions when the real and simple question they should be asking is a moral one: Why do Republicans seem intent on hurting the most vulnerable among us?
Unfortunately, the answer may just be, to paraphrase Clint Eastwood’s Dirty Harry on why serial killers murder: because they like it.
Sure, we know the rote answers. Republicans love to talk about “choice” and “freedom” and “markets” and “deficit reduction” and “personal responsibility” and all sorts of ideological claptrap that seems to slap principle on what really is punishment. At best these are smokescreens, at worst traps that have succeeded in entangling the media, Democrats and Americans generally in arguments about tactics or priorities rather than arguments about motives and their real-life consequences.
There was a time when Republicans worried they might be perceived as being on the wrong side of morality, even if that worry didn’t move them to get on the right side. They used to dress up their cruelty not only in those old Milton Friedman free market clichés but in new ones like “compassionate conservatism,” because even as they knew there was nothing compassionate about it, they also knew that most Americans weren’t buying into letting the poor fend for themselves. That wasn’t American. That wasn’t human.
Some of that window dressing remains in the Trump era, but not much. Republicans still feel obliged to declare that their health care plan will cover more Americans at a lower cost, but everyone knows they are lying. By one report, when the White House ran the numbers, it predicted 26 million would lose health coverage — 2 million more than the Congressional Budget Office figure.
Speaker Paul Ryan was more than sanguine about those sufferers. He flashed a vulpine smile in recounting the CBO numbers, actually saying they were better than he had thought, which is to say that the American Health Care Act, as they call it, may have been intended to deny coverage, just as Trump’s budget clearly was intended to hurt the most vulnerable, including those vulnerable supporters of his. To my mind, these weren’t collateral effects. They were the very reasons for the AHCA and the budget.
So, again, why? What kind of people seem dedicated to inflicting pain on others?
It is not an easy question to answer, since it violates all precepts of basic decency. I suspect it comes from a meld of Calvinism with social Darwinism. From Calvinism, conservatives borrowed both a pinched and unsparing view of humanity as well as the idea of “election” — namely, that God “elects” some folks for redemption, which, when rebooted for modern conservatism, has an economic component. Plain and simple, rich people are rich because they are better than poor people.
By the same token, poor people are poor because they are worse. This is God’s edict, so to speak. (The so-called Calvinist revival has an awful lot in common with Trumpism.) From social Darwinism, they borrowed the idea that this is the way the world should be: winners and losers, those who can succeed and those who can’t. It is a world without luck, except for tough luck.
From this perspective, conservatives may not really think they are harming the vulnerable but instead harming the undeserving, which is very different. In effect, conservatives believe they are only meting out divine and natural justice. It’s convenient, of course, that this justice turns out to be redistributive, taking resources from the poor and middle class and funneling them to the wealthy, who happen to be the benefactors of conservatism as well as its beneficiaries. (Just note how Republicans howl about redistribution when it is the other way around.) Where many of us see need, they only see indolence and impotence. It is, by almost any gauge, not only self-serving but also plainly wrong — moralistic rather than moral.
But if Republicans see their moral duty as denying help to the weak, that denial is part of a larger and even uglier social equation. In a recent New York Times column, Linda Greenhouse recalled an exchange 30 years ago between Robert Bork and Illinois Sen. Paul Simon during Bork’s confirmation hearings for the Supreme Court. Simon asked Bork about a speech he had given two years earlier, in which the judge said:
“… when a court adds to one person’s constitutional rights, it subtracts from the rights of others.”
The senator asked, “Do you believe that is always true?”
“Yes, Senator,” Judge Bork replied. “I think it’s a matter of plain arithmetic.”
Sen. Simon: “I have long thought it is kind of fundamental in our society that when you expand the liberty of any of us, you expand the liberty of all of us.”
Judge Bork: “I think, Senator, that is not correct.”
Remember that although (or perhaps because!) his Supreme Court nomination failed, Bork is a conservative deity. As far as conservatives and Republicans are concerned, to give anything to the less fortunate is to subtract it from everyone else — a zero-sum game between the rich and the rest of America.
This isn’t politics. This is bedrock conservative philosophy. And it may have no more eager avatar than Donald Trump, who is all about winning and losing. Trump has always professed to want to blow up the system. He is like a child knocking down a tower of blocks, only in his case the blocks are American democracy and decency.
But with the AHCA and his Draconian budget, one that even a few Republicans — no doubt fearing voter retribution — blanched at, Trump may not have blown up the system so much as he has blown the Republicans’ cover. He even seems to have emboldened some of them to come out of hiding and admit that any assistance for the poor is too much.
This we always suspected. What is harder to parse is the joy conservative Republicans seem to get in hurting the weak, making the GOP not just the punishment party, but also the schadenfreude party. Or put in different terms: Conservatism didn’t create meanness, but meanness sure created conservatism.
We might be able to understand that sense of smug moral and social superiority from doctrinaire Republicans who spout Ayn Rand and detest those whose hurdles are the highest. We all know hate can be intoxicating. But these past two weeks Ryan and Trump have been gambling on something else — that many of their fellow Americans agree with them, that these Americans share a deep and abiding hostility to those who need government assistance. Whether Ryan and Trump are right may very well determine the fate of this administration and the country.
So the second big question, alongside why Republicans and conservatives seem to luxuriate in cruelty, is why any other ordinary American would. There have been predictions on the left that once those ordinary Americans feel the sting of losing health care or job training or work safety regulations or clean water and air, they will revolt, and Trump will be dust. But there is no certainty to this. A recent New York Times piece on this very issue indicated that at least some Trump supporters know they will suffer from his budget and still support him.
Another Times article, by Eduardo Porter, quoted a Harvard economist suggesting that the white working class feel they get so little benefit from the so-called welfare state that they see things through the same zero-sum prism as Bork, Ryan and Trump. Whatever the poor gain, the white working class loses.
When you think how much the government does for so many across such a wide spectrum, you wonder what world these people are living in. Indeed, a signal achievement of conservatism, decades in the making, has been pitting the “have littles” against the “have nots” while the “have lots” stayed above the fray. Of course, by that calculation, you might think the struggling white working class would be on the loser side of the ledger, sentenced to defeat by their own deficiencies in our Darwinist world. But in another neat trick, Republicans have managed to convince them they are victims of twin demonic forces, government and liberal elites, that disrupt the natural order of things. In this way, many Republicans helped turn many Americans into brutes and our American community into a state of nature. There couldn’t have been a President Trump without it. There couldn’t have been an ACHA or a Trump budget either.
This, then, is a vital moment for American morality and, to the extent the two are intertwined, American democracy. You can’t pretend Trump and his Republican pals are trying to achieve good ends by different means. They aren’t. You can’t act as if they give a damn about the millions of poor and working-class Americans. They don’t.
But even as their cover is blown, someone needs to keep asking them the fundamental question again and again and again: Why?
via Salon: in-depth news, politics, business, technology & culture Salon
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Most Hotel CEOs Dismiss Airbnb’s Impact But Demand Level Playing Field
AccorHotels CEO Sebastien Bazin in knows that Airbnb will continue to grow, and feels strongly there needs to be more transparency about the identity of hosts. He's pictured above in a promotional video. Accorhotels
Skift Take: Most CEOs said the same thing they’ve said about Airbnb countless times before — ‘We need a level playing field’ — but there are signs that some are starting to take the $31 billion alternative accommodations provider a bit more seriously.
— Deanna Ting
Ask any hotel CEO what his or her thoughts are about Airbnb, the homesharing platform that’s valued at $31 billion — just a little less than Marriott International’s $38.7 billion market cap — and you’re likely to hear the same refrains:
“No, they’re not a threat.” Or “We just want a level playing field.” Or the admission that, “Yes, sometimes we see an impact on compression nights [periods when hotel occupancy is saturated because of a city-wide event or large convention.]”
That was the case at the NYU Hospitality Industry Investment Conference in New York City last week. However, there are signs that some CEOs are beginning to view Airbnb as more of a direct competitor, if not a threat, including Four Seasons Hotels and Resorts CEO J. Allen Smith.
And then, of course, there’s iconic hotelier Ian Schrager, who’s often been quoted as saying Airbnb is a “mortal threat” to the hotel industry — so much so, in fact, that his newest hotel, Public New York, is a direct response to it.
Skift spoke to a half-dozen hospitality CEOs, as well as other executives, to learn their thoughts about Airbnb, as well as the ongoing battle between the company and the American Hotel & Lodging Association (AHLA). Here’s what they had to say:
Marriott CEO Arne Sorenson: We Need a Level Playing Field
“Well I’m not deeply expert in all of these [things] that AHLA is doing,” Sorenson said. “But I think the core aim is to achieve a level playing field, period. And that means if we pay larger taxes, those platforms should pay larger taxes. It means if we’ve got to go through a process of getting approval and registered to do business in markets, they should be, too.
“And obviously, that becomes less controversial the more their [Airbnb-like platforms] growth is in dedicated units as opposed to someone’s extra bedrooms. But where there are dedicated units, they raise real questions around accessibility, around fire life safety, around lodging taxes, and to some extent what cities want around residential policy. How many units do they want to be essentially off the market to local residents because it’s some sort of micro hotel? And so there are dozens of questions in all of that, but in the first instance, it’s about a level playing field.”
Hyatt CEO Mark Hoplamazian: Airbnb Is Impacting Housing
“I guess, in short the AHLA is really leading the way in this effort,” Hoplamazian told a group of reporters. “The particular focus has been on listings … listings by, what could be described as, commercial owners of properties, multiple properties that, first of all, are problematic from a regulatory perspective but also, not really what the site was originally based on, which was allowing the individuals to rent a room in their house or rent their house.
“As a consequence of that, it feels much more like a ‘shadow hotel’ operation. That’s been their principal focus, which is to shine a light on those facts, which is that a very large proportion of total bookings and revenues are coming through those kinds of listings as opposed to the individual or home owner. And to really focus the minds of municipal policymakers on what the pending consequences of that are.”
He continued, “One of the consequences is distortions in the housing market, where you’ve got support for property values for residential properties that are derived from what could be considered to be ‘shadow hotels’ if you will. That’s not a natural marketplace.
“In some markets, I think San Francisco is probably high on the list, you see the consequences of that which are unaffordability and extremely high levels in growth of homelessness. It’s a problem that’s beyond the hotel industry’s focus and attention. There are serious municipal policy issues that are at stake here. That’s really been the primary avenue.”
Expedia CEO Dara Khosrowshahi: Appropriate Regulations Are Needed
Unlike some of the hotel CEOs attending the conference, with the exception of AccorHotels CEO Sebastien Bazin, Expedia CEO Dara Khosrowshahi’s company is anactive and direct player in the alternative accommodations space: Expedia owns HomeAway and sister brand VRBO, among others.
“With HomeAway, [we’re] more involved in traveling to resort destinations, beach destinations, resort destinations where vacation rentals have been rented out for a long period of time. It’s just the channel shift going from offline to online,” he said. “A lot of these destinations already have laws in place, [so] I think it’s the urban market that is appearing. I think any time a new business forms in a marketplace, regulations have a tough time catching up to the formation of new businesses because it just happens more slowly.”
“My caution is that, one, I’m not sure that I factually buy into [the idea that] real estate market prices are going up because of homesharing. They’ve been going up I think because of the technology sector and all the wealth created there; we could debate that.
“With that aside, I think regulations are needed, but I think that appropriate regulations, constructive regulations that are not designed to stop advancement, but are designed to benefit the customer and appropriate regulations for this new sector let say, may not be regulations that may not completely mirror the hotel industry. I do believe in an eveplaying field. I think folks should be paying occupancy taxes just like hoteliers do, so I think this could be a nice local revenue stream as well. I think it’s important to register these homes.”
HomeAway, along with Airbnb, recently settled its lawsuit against the City of San Francisco by agreeing to automatically register all local hosts in compliance with short-term rental laws that went into effect in 2014. However, HomeAway also recently filed a federal lawsuit in Chicago alleging that a somewhat similar law is “deeply flawed.”
“I think a lot of good is happening, it’s just right now there’s a bunch of thrash as regulations catch up,” Khosrowshahi said. “There’s the additional complication that every single local municipality wants their own flavor, which is very difficult for platform companies like ours to build out 50, 60, 70 different flavors.
“What we’re hoping is that you get to some consensus. Is it appropriate consensus? Is it constructive consensus? Because travel is a good thing. This is a new product that consumers want. Let’s not try to block it and then go there and roll out the regulations appropriately.”
AccorHotels CEO Sebastien Bazin: We Need More Transparency
AccorHotels has a number of investments in alternative accommodations platforms that include Oasis and Squarebreak, as well as owning luxury homesharing provider Onefinestay. Accorhotels is also planning to acquire Travel Keys, a luxury vacation rental specialist.
“We’ve been asking for one thing, very simple, which is transparency,” Bazin said. “And for all listings to be reported someplace, so that we know who is behind that home. Is that a primary homeowner, who obviously has a right to put it on the listing? Is it a multi-owner with three or four sites? Is it a commercial developer and is that why he has a big building on which all the flats in it happen to be on Airbnb?
“The first thing is listings. Listings within a home, so I guess you know how many rooms, how many nights, etc. The second thing is taxes. We as a hotel have so many taxes on so many different items, I guess 90 percent of the European owners of Airbnb do not declare any taxes. The minute that they start having to pay taxes, then it’s going to be much easier to understand who is getting the initial income.
“I’m not asking for those to pay, I’m just asking for an even playing field. But I’m not asking for Airbnb to stop because they will continuing growing, and as I said many times, I wish I could have invested in Airbnb. I just want to make sure they have the same constraint as we do and the same opportunities.”
Best Western CEO David Kong: Regulations for the Public Good
“In general, I don’t think anyone in this industry has anything against the homesharing economy or home sharing for that matter,” Kong said. “I think the industry just wants to make sure that there is an even playing field. It’s not just for our industry. It’s for the general public as well. There are reasons why health and safety and accessibility roles are in place. It’s to provide and care for the general public. When you have companies like Airbnb that purposefully skirt these requirements, it provides a bad name for the accommodation industry. That’s one.”
“The other side of that is the taxes,” Kong continued. “We all have to program our systems to make sure that we comply with paying our taxes and Airbnb somehow doesn’t have to do that. It just seems unfair and it’s also, not just for the industry as competition but also for the communities that they serve, it seems unfair to the community because when are those tax monies going to be useful except for those communities, right? I think that those are the reasons. It’s obviously the level playing field, but also it’s the health and safety measures and taxes. It’s more for the public.”
Loews Hotels CEO Jonathan Tisch: It’s a Matter of Safety
“We as hotel companies spend a lot of money protecting and keeping our guests and our team members safe,” Tisch said. “The safety and security of anybody that walks into a hotel is paramount, anybody that works in a hotel is paramount. [That’s] yet another issue where that is not necessarily in turn with somebody renting out their home.”
Preferred Hotel Group CEO Lindsey Ueberroth: our workforce is Being Impacted
“We have a residence collection because that vacation rental space is huge,” Ueberroth said. “We felt that we had a sweet spot sort of in between what an Airbnb is all the way up to an exclusive resort. We sort of sit in the middle. We have a lot of hotels that actually have a residence product. Let’s really kind of create a platform around that as well as examples like the AKA hotels here, which really lend themselves to more of long term stay, or families that want a hotel experience, but they really want a residential component.
“The residence space is something we’re very interested in growing. We think that we can add that layer of the seal of approval of a brand, the quality assurance process, the fact that it can be booked directly through a consumer, or through a travel professional. We kind of have a nice way to wrap around that, the whole vacation rental/residence area that’s becoming increasingly popular.”
She added, “Is Airbnb a threat? In some ways, but I think it’s been great for the industry. I do think, when you read about all this stuff, I do think the playing field needs to be leveled a bit in terms of some of the regulations and the things that they should have to abide by and follow.
“What’s interesting is we met with our hotel advisory group, and they were saying the effect it’s having on them is less about the loss of room nights but, depending on where they’re based, that the apartment rental market is drying up so that their employees are having a hard time finding places to live. It’s impacting their workforce. It’s impacting their ability to hire and hire well. Their potential employees are having to commute too far to get to the hotel … It’s having other unintended effects that I don’t think we all really thought about beyond room nights.”
Dream Hotel Group CEO Jay Stein: Airbnb Is Having a Small Impact
“I think it’s a small impact, to be honest with you,” Stein said, when asked if Airbnb was having an impact on his hotel business. “On certain nights, it has had an impact, and even a small impact is a big deal. One, 2 percent, if I get that 1 or 2 percent, it’d be great to have it. But I think the way the laws are moving and the way the government is moving, they [Airbnb and other homesharing platforms] need to be put into a box so they operate like a business.
“They can’t just be a cowboy and make a whole bunch of money, not have regulations, and have, basically, hotels that don’t follow hotel rules. That’s changing and I think they’ll fall into a classification that people that want that, they’ll pay taxes, and they’ll have insurance and other types of things.”
He added, “But the big part of Airbnb, where there were whole buildings that were becoming Airbnb buildings, will go away, and I don’t think they’ll find any way to get traction, particularly in New York and now, we’re seeing in other cities. So, I think that’ll be pretty common.”
According to a recent UBS report, Stein may be correct in his assessment that Airbnb’s growth is slowing, at least in New York City, which has some of the strictest short-term rental laws in the U.S.
Meininger Hotel Group CEO Hannes Spanring: Airbnb Is Very Positive
Berlin-based Meininger Hotel Group has a collection of 18 hotels and hostels throughout Europe.
“I see [Airbnb], actually, as a very positive sign,” Spanring said. “People always ask me, ‘What do you think is a disruptor? I don’t think [it is]. Not for our customers or our clientele because I think it, in a way, more opened up the market for us. [It’s] something else [other] than those typically five-star and four-star hotels. I mean, people like when they are going there. Normally, in an Airbnb, they’re staying a little bit longer. I do not think that this is any competition to us, but it’s more pointing out that there is something more actually in the market.”
Red Lion Hotels CMO Bill Linehan: Concern for Timeshares, Online travel agencies
“VRBO, and vacation rentals have been around for years, and so have various timeshares and rental units,” Linehan said. “It’s a different type of accommodation. What Airbnb has done is it’s really made it easy for everyone to get into that marketplace. I would love to see the reports and the market penetration of Airbnb on timeshare rentals. If individuals and companies are concerned about its erosion to lodging, what about this erosion to timeshare rentals? That’s where I think it really is.”
He also said Airbnb is becoming more of a direct competitor to online travel agencies (OTAs) such as Expedia and Priceline.
“I also think that what they’ve built is they’ve built an online platform that, quite honestly, perhaps the OTAs might get concerned [because they’re becoming a new type of OTA],” he said.
When it comes to hotels, Linehan said, “For me, in the hotel space, where they are impacting our business is very much where we need more supply. They are an alternative lodging. They are not, however, a hotel. A hotel has a lobby. It has services. It has a staff. It has experience. You don’t know what you’re getting. You have some reviews and so forth, but you’re getting another residence. You’re not getting a hotel. It’s an alternative lodging.
“So are many other alternative lodgings. Is it one that we are concerned with? One that needs regulation and fairness? Absolutely. What the AHLA is doing, I’m fully supportive of it, yes. But am I going to whine and complain about what are they doing, and say, ‘This isn’t fair,’ and so forth? They are an alternative. What they’ve done is they’ve harnessed and created a new lodging alternative that I don’t think impedes all of lodging. It’s just another option. … Just like I’m not going to villainize the OTAs for having an opportunity for me to go somewhere and get more market share.”
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Most Hotel CEOs Dismiss Airbnb’s Impact But Demand Level Playing Field
AccorHotels CEO Sebastien Bazin in knows that Airbnb will continue to grow, and feels strongly there needs to be more transparency about the identity of hosts. He's pictured above in a promotional video. Accorhotels
Skift Take: Most CEOs said the same thing they’ve said about Airbnb countless times before — ‘We need a level playing field’ — but there are signs that some are starting to take the $31 billion alternative accommodations provider a bit more seriously.
— Deanna Ting
Ask any hotel CEO what his or her thoughts are about Airbnb, the homesharing platform that’s valued at $31 billion — just a little less than Marriott International’s $38.7 billion market cap — and you’re likely to hear the same refrains:
“No, they’re not a threat.” Or “We just want a level playing field.” Or the admission that, “Yes, sometimes we see an impact on compression nights [periods when hotel occupancy is saturated because of a city-wide event or large convention.]”
That was the case at the NYU Hospitality Industry Investment Conference in New York City last week. However, there are signs that some CEOs are beginning to view Airbnb as more of a direct competitor, if not a threat, including Four Seasons Hotels and Resorts CEO J. Allen Smith.
And then, of course, there’s iconic hotelier Ian Schrager, who’s often been quoted as saying Airbnb is a “mortal threat” to the hotel industry — so much so, in fact, that his newest hotel, Public New York, is a direct response to it.
Skift spoke to a half-dozen hospitality CEOs, as well as other executives, to learn their thoughts about Airbnb, as well as the ongoing battle between the company and the American Hotel & Lodging Association (AHLA). Here’s what they had to say:
Marriott CEO Arne Sorenson: We Need a Level Playing Field
“Well I’m not deeply expert in all of these [things] that AHLA is doing,” Sorenson said. “But I think the core aim is to achieve a level playing field, period. And that means if we pay larger taxes, those platforms should pay larger taxes. It means if we’ve got to go through a process of getting approval and registered to do business in markets, they should be, too.
“And obviously, that becomes less controversial the more their [Airbnb-like platforms] growth is in dedicated units as opposed to someone’s extra bedrooms. But where there are dedicated units, they raise real questions around accessibility, around fire life safety, around lodging taxes, and to some extent what cities want around residential policy. How many units do they want to be essentially off the market to local residents because it’s some sort of micro hotel? And so there are dozens of questions in all of that, but in the first instance, it’s about a level playing field.”
Hyatt CEO Mark Hoplamazian: Airbnb Is Impacting Housing
“I guess, in short the AHLA is really leading the way in this effort,” Hoplamazian told a group of reporters. “The particular focus has been on listings … listings by, what could be described as, commercial owners of properties, multiple properties that, first of all, are problematic from a regulatory perspective but also, not really what the site was originally based on, which was allowing the individuals to rent a room in their house or rent their house.
“As a consequence of that, it feels much more like a ‘shadow hotel’ operation. That’s been their principal focus, which is to shine a light on those facts, which is that a very large proportion of total bookings and revenues are coming through those kinds of listings as opposed to the individual or home owner. And to really focus the minds of municipal policymakers on what the pending consequences of that are.”
He continued, “One of the consequences is distortions in the housing market, where you’ve got support for property values for residential properties that are derived from what could be considered to be ‘shadow hotels’ if you will. That’s not a natural marketplace.
“In some markets, I think San Francisco is probably high on the list, you see the consequences of that which are unaffordability and extremely high levels in growth of homelessness. It’s a problem that’s beyond the hotel industry’s focus and attention. There are serious municipal policy issues that are at stake here. That’s really been the primary avenue.”
Expedia CEO Dara Khosrowshahi: Appropriate Regulations Are Needed
Unlike some of the hotel CEOs attending the conference, with the exception of AccorHotels CEO Sebastien Bazin, Expedia CEO Dara Khosrowshahi’s company is anactive and direct player in the alternative accommodations space: Expedia owns HomeAway and sister brand VRBO, among others.
“With HomeAway, [we’re] more involved in traveling to resort destinations, beach destinations, resort destinations where vacation rentals have been rented out for a long period of time. It’s just the channel shift going from offline to online,” he said. “A lot of these destinations already have laws in place, [so] I think it’s the urban market that is appearing. I think any time a new business forms in a marketplace, regulations have a tough time catching up to the formation of new businesses because it just happens more slowly.”
“My caution is that, one, I’m not sure that I factually buy into [the idea that] real estate market prices are going up because of homesharing. They’ve been going up I think because of the technology sector and all the wealth created there; we could debate that.
“With that aside, I think regulations are needed, but I think that appropriate regulations, constructive regulations that are not designed to stop advancement, but are designed to benefit the customer and appropriate regulations for this new sector let say, may not be regulations that may not completely mirror the hotel industry. I do believe in an eveplaying field. I think folks should be paying occupancy taxes just like hoteliers do, so I think this could be a nice local revenue stream as well. I think it’s important to register these homes.”
HomeAway, along with Airbnb, recently settled its lawsuit against the City of San Francisco by agreeing to automatically register all local hosts in compliance with short-term rental laws that went into effect in 2014. However, HomeAway also recently filed a federal lawsuit in Chicago alleging that a somewhat similar law is “deeply flawed.”
“I think a lot of good is happening, it’s just right now there’s a bunch of thrash as regulations catch up,” Khosrowshahi said. “There’s the additional complication that every single local municipality wants their own flavor, which is very difficult for platform companies like ours to build out 50, 60, 70 different flavors.
“What we’re hoping is that you get to some consensus. Is it appropriate consensus? Is it constructive consensus? Because travel is a good thing. This is a new product that consumers want. Let’s not try to block it and then go there and roll out the regulations appropriately.”
AccorHotels CEO Sebastien Bazin: We Need More Transparency
AccorHotels has a number of investments in alternative accommodations platforms that include Oasis and Squarebreak, as well as owning luxury homesharing provider Onefinestay. Accorhotels is also planning to acquire Travel Keys, a luxury vacation rental specialist.
“We’ve been asking for one thing, very simple, which is transparency,” Bazin said. “And for all listings to be reported someplace, so that we know who is behind that home. Is that a primary homeowner, who obviously has a right to put it on the listing? Is it a multi-owner with three or four sites? Is it a commercial developer and is that why he has a big building on which all the flats in it happen to be on Airbnb?
“The first thing is listings. Listings within a home, so I guess you know how many rooms, how many nights, etc. The second thing is taxes. We as a hotel have so many taxes on so many different items, I guess 90 percent of the European owners of Airbnb do not declare any taxes. The minute that they start having to pay taxes, then it’s going to be much easier to understand who is getting the initial income.
“I’m not asking for those to pay, I’m just asking for an even playing field. But I’m not asking for Airbnb to stop because they will continuing growing, and as I said many times, I wish I could have invested in Airbnb. I just want to make sure they have the same constraint as we do and the same opportunities.”
Best Western CEO David Kong: Regulations for the Public Good
“In general, I don’t think anyone in this industry has anything against the homesharing economy or home sharing for that matter,” Kong said. “I think the industry just wants to make sure that there is an even playing field. It’s not just for our industry. It’s for the general public as well. There are reasons why health and safety and accessibility roles are in place. It’s to provide and care for the general public. When you have companies like Airbnb that purposefully skirt these requirements, it provides a bad name for the accommodation industry. That’s one.”
“The other side of that is the taxes,” Kong continued. “We all have to program our systems to make sure that we comply with paying our taxes and Airbnb somehow doesn’t have to do that. It just seems unfair and it’s also, not just for the industry as competition but also for the communities that they serve, it seems unfair to the community because when are those tax monies going to be useful except for those communities, right? I think that those are the reasons. It’s obviously the level playing field, but also it’s the health and safety measures and taxes. It’s more for the public.”
Loews Hotels CEO Jonathan Tisch: It’s a Matter of Safety
“We as hotel companies spend a lot of money protecting and keeping our guests and our team members safe,” Tisch said. “The safety and security of anybody that walks into a hotel is paramount, anybody that works in a hotel is paramount. [That’s] yet another issue where that is not necessarily in turn with somebody renting out their home.”
Preferred Hotel Group CEO Lindsey Ueberroth: our workforce is Being Impacted
“We have a residence collection because that vacation rental space is huge,” Ueberroth said. “We felt that we had a sweet spot sort of in between what an Airbnb is all the way up to an exclusive resort. We sort of sit in the middle. We have a lot of hotels that actually have a residence product. Let’s really kind of create a platform around that as well as examples like the AKA hotels here, which really lend themselves to more of long term stay, or families that want a hotel experience, but they really want a residential component.
“The residence space is something we’re very interested in growing. We think that we can add that layer of the seal of approval of a brand, the quality assurance process, the fact that it can be booked directly through a consumer, or through a travel professional. We kind of have a nice way to wrap around that, the whole vacation rental/residence area that’s becoming increasingly popular.”
She added, “Is Airbnb a threat? In some ways, but I think it’s been great for the industry. I do think, when you read about all this stuff, I do think the playing field needs to be leveled a bit in terms of some of the regulations and the things that they should have to abide by and follow.
“What’s interesting is we met with our hotel advisory group, and they were saying the effect it’s having on them is less about the loss of room nights but, depending on where they’re based, that the apartment rental market is drying up so that their employees are having a hard time finding places to live. It’s impacting their workforce. It’s impacting their ability to hire and hire well. Their potential employees are having to commute too far to get to the hotel … It’s having other unintended effects that I don’t think we all really thought about beyond room nights.”
Dream Hotel Group CEO Jay Stein: Airbnb Is Having a Small Impact
“I think it’s a small impact, to be honest with you,” Stein said, when asked if Airbnb was having an impact on his hotel business. “On certain nights, it has had an impact, and even a small impact is a big deal. One, 2 percent, if I get that 1 or 2 percent, it’d be great to have it. But I think the way the laws are moving and the way the government is moving, they [Airbnb and other homesharing platforms] need to be put into a box so they operate like a business.
“They can’t just be a cowboy and make a whole bunch of money, not have regulations, and have, basically, hotels that don’t follow hotel rules. That’s changing and I think they’ll fall into a classification that people that want that, they’ll pay taxes, and they’ll have insurance and other types of things.”
He added, “But the big part of Airbnb, where there were whole buildings that were becoming Airbnb buildings, will go away, and I don’t think they’ll find any way to get traction, particularly in New York and now, we’re seeing in other cities. So, I think that’ll be pretty common.”
According to a recent UBS report, Stein may be correct in his assessment that Airbnb’s growth is slowing, at least in New York City, which has some of the strictest short-term rental laws in the U.S.
Meininger Hotel Group CEO Hannes Spanring: Airbnb Is Very Positive
Berlin-based Meininger Hotel Group has a collection of 18 hotels and hostels throughout Europe.
“I see [Airbnb], actually, as a very positive sign,” Spanring said. “People always ask me, ‘What do you think is a disruptor? I don’t think [it is]. Not for our customers or our clientele because I think it, in a way, more opened up the market for us. [It’s] something else [other] than those typically five-star and four-star hotels. I mean, people like when they are going there. Normally, in an Airbnb, they’re staying a little bit longer. I do not think that this is any competition to us, but it’s more pointing out that there is something more actually in the market.”
Red Lion Hotels CMO Bill Linehan: Concern for Timeshares, Online travel agencies
“VRBO, and vacation rentals have been around for years, and so have various timeshares and rental units,” Linehan said. “It’s a different type of accommodation. What Airbnb has done is it’s really made it easy for everyone to get into that marketplace. I would love to see the reports and the market penetration of Airbnb on timeshare rentals. If individuals and companies are concerned about its erosion to lodging, what about this erosion to timeshare rentals? That’s where I think it really is.”
He also said Airbnb is becoming more of a direct competitor to online travel agencies (OTAs) such as Expedia and Priceline.
“I also think that what they’ve built is they’ve built an online platform that, quite honestly, perhaps the OTAs might get concerned [because they’re becoming a new type of OTA],” he said.
When it comes to hotels, Linehan said, “For me, in the hotel space, where they are impacting our business is very much where we need more supply. They are an alternative lodging. They are not, however, a hotel. A hotel has a lobby. It has services. It has a staff. It has experience. You don’t know what you’re getting. You have some reviews and so forth, but you’re getting another residence. You’re not getting a hotel. It’s an alternative lodging.
“So are many other alternative lodgings. Is it one that we are concerned with? One that needs regulation and fairness? Absolutely. What the AHLA is doing, I’m fully supportive of it, yes. But am I going to whine and complain about what are they doing, and say, ‘This isn’t fair,’ and so forth? They are an alternative. What they’ve done is they’ve harnessed and created a new lodging alternative that I don’t think impedes all of lodging. It’s just another option. … Just like I’m not going to villainize the OTAs for having an opportunity for me to go somewhere and get more market share.”
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