When Airbnb was first introduced in 2008, it seemed like the perfect company. It offered travelers a cheaper alternative to hotels, acted as a much-needed market disruptor, and presented an opportunity for ordinary homeowners to make a little extra money. People felt better about their money going towards humans instead of huge hotel corporations, but of course, like so many good ideas, Airbnb was ruined by greed and capitalism.
How did it start?
It all started when two roommates, struggling to make ends meet in San Francisco, rented out air mattresses in their living room to attendees of a sold-out design conference. They called the concept "Air Bed & Breakfast." After a successful weekend hosting three guests, they realized how big their idea could be, and partnered with their friend to build a website, hoping to expand their idea across the world.
And guess what? It worked. By the mid-2010s, Airbnb listings spanned nearly every major city on earth. Travelers loved the space, kitchens, and lower prices, and hosts loved the income.
At first, cities loved the tourism boom. Airbnb positioned itself not as a lodging company, but as a tech platform, connecting hosts with travelers. This allowed it to grow rapidly while skirting many of the traditional regulations.
The change in public opinion
By 2020, Airbnb was a giant, but then the pandemic hit, which should have been a death sentence, but, extraordinarily, wasn't. After initial declines in 2020, Airbnb made a huge recovery as "work from home" became "work from anywhere," and the company started seeing significant increases in the average length of stays.
However, public perception began to change, especially as many major cities began experiencing housing shortages. The scale that made Airbnb successful began to destroy its appeal. It was wealthy investors who were dominating listings, not homeowners. Entire apartment buildings were converted into short-term rentals, shrinking long-term rental supply and driving up costs. What began as "renting out your spare room" began to look a little too much like unregulated hotel activity.
Airbnb began falling out of favor with neighbors, too. A survey found that only 40 percent of Americans think positively of Airbnbs in their locale, and roughly half are in favor of banning the company altogether.
Meanwhile, the guest experience worsened. Prices and fees climbed to the point where an Airbnb started costing more than a hotel and didn't necessarily offer the same conveniences. Horror stories of last-minute cancellations leaving guests stranded, or dirty, wrongly advertised spaces, began circulating online.
The push-back
In an effort to preserve neighborhood integrity and local culture, several governments across the globe are strictly limiting Airbnb operations. New York City, for example, recently introduced a law that would impose a maximum limit on the number of guests and require the host to reside there. Earlier this year, Barcelona, a city plagued by overtourism, announced a plan to ban Airbnbs from residential buildings altogether by 2028.
Airbnb may not be dead yet, but its image is certainly tarnished. While it remains widely used and profitable, the company may need to get back to its roots if it wants to continue being prosperous in the long term. In the end, its own success turned it into the very thing that it once aimed to disrupt.
