Airbnb Gets New Power to Inform on Rivals When They Are Scofflaws

New Airbnb settlements with Boston and Miami Beach legitimize alternative accommodations in those cities, but also give the homesharing giant new leverage over competitors.

Airbnb settled with the two cities to provide hosts’ information and to delist those who aren’t registered, and the Boston agreement also notably requires “fairness across platforms.”

This entails efforts to level the playing field — not so much among short-term rental platforms and hotels necessarily but, in this instance, between Airbnb, Booking Holdings, Expedia/Vrbo, TripAdvisor, and others. Google, which is in the initial phases of becoming a short-term rental platform, may also find itself subject to toeing the regulatory line.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Airbnb-Boston pact (see settlement agreement embedded below) enables the two parties, “upon request from Airbnb,” to confer about compliance with the city’s ordinance when any “platform operating as a booking agent” doesn’t have an agreement with the city.” data-reactid=”25″>The Airbnb-Boston pact (see settlement agreement embedded below) enables the two parties, “upon request from Airbnb,” to confer about compliance with the city’s ordinance when any “platform operating as a booking agent” doesn’t have an agreement with the city.

The information that Airbnb would provide to the city “shall include non-confidential information concerning any fines or other enforcement action against said platform,” meaning Airbnb’s competitors, according to the agreement.

Airbnb is generally the most-high-profile short-term rental platform in the world, and when critics, including hotels, neighbors, and regulators think of clamping down on short-term rentals, Airbnb often gets most of the heat while companies such as Booking.com, which has a huge short-term rental business, Expedia/Vrbo, and TripAdvisor tend to slip through the cracks and attract less scrutiny.

But that will be changing as regulators around the world adapt to the disruptive force – including the positives and negatives — of alternative accommodations.

Fairness Provision Gives Airbnb Matching Rights

The Boston-Airbnb pact contains a Fairness Across Platforms provision that states that on the heels of the settlement, the city will begin talks with Airbnb’s rivals to conclude their own agreements with the Massachusetts municipality.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Among the other elements of the fairness provision, Airbnb will get a copy of its rivals’ agreements with Boston, and will inform the city if any parts of those pacts are more favorable than the settlement that Airbnb negotiated. The settlement gives Airbnb certain matching rights. The existence of the fairness provision in the Boston-Airbnb settlement was first reported in a Wired story.” data-reactid=”31″>Among the other elements of the fairness provision, Airbnb will get a copy of its rivals’ agreements with Boston, and will inform the city if any parts of those pacts are more favorable than the settlement that Airbnb negotiated. The settlement gives Airbnb certain matching rights. The existence of the fairness provision in the Boston-Airbnb settlement was first reported in a Wired story.

Expedia Reaction

Philip Minardi, head of public affairs, Americas, for Expedia Group, said the company believes in sensible regulation for all parts of the travel ecosystem, including short-term rentals. He pointed to Expedia partnerships already in place with Seattle, Washington, and Louisville, Kentucky, for example.

“We are — and have been — complying with the Miami Beach law since it took effect earlier this year,” Minardi said. “In Boston, Expedia Group has attempted to engage with city officials in an effort to reach a workable, long-term solution, and looks forward to discussions with the city.”

Minardi added: “We look forward to continued discussions with governments to advance comprehensive policies that support healthy local tourism.”

Representatives of Booking Holdings and TripAdvisor did not immediately comment on Airbnb’s settlements and the fairness provisions in the Boston-Airbnb pact.

About the Boston settlement, Airbnb told Skift: “Our goal has always been to work with the City to find a path forward for home-sharing in Boston. With this settlement agreement, that is what we have collectively achieved, establishing an effective regulatory framework for compliance. We are proud that we have forged this comprehensive solution with the City and look forward to working with our community to make them aware of their role within this new framework.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Andrew Kitchell, founder and CEO of Lyric, which saw Airbnb recently leading a $160 million fundraising round for the company, concurred that there should be regulatory fairness in that different companies should have to abide by similar rules.” data-reactid=”38″>Andrew Kitchell, founder and CEO of Lyric, which saw Airbnb recently leading a $160 million fundraising round for the company, concurred that there should be regulatory fairness in that different companies should have to abide by similar rules.

However, said Kitchell, whose company operates serviced apartments and has hotel licenses in places such as New York City, municipalities should find room to distinguish between hosts who offer a single apartment, and operators who may have dozens or more units.