Collaborative economy in short-term accommodation rental: Impact on employment Palma de Mallorca, 6 November 2017

Kerstin HOWALD EFFAT Tourism Sector Secretary

1 The short-term accommodation rental market - platforms

Platform Countries Listings Guests/nights Link airbnb 191+ 3,000,000+ 80,000,000 www.airbnb.com

HomeAway 190 2,000,000 www.homeaway.com

9flats 6,000,000 www.9flats.com

Wimdu 150 350,000 10,000,000 www.wimdu.com

RentbyOwner 2,000,000 3,362,712 www.rentbyowner.com

Homelike 50+ cities 19,000+ 350,000+ www.thehomelike.com

PerfectPlaces 103 75,000 www.perfectplaces.com

7 cities www.onefinestay.com OneFineStay + 3 regions 2,500 2 The short-term accommodation rental market - guidance vs. regulation

6/2016 - Commission Communication COM 2016 356 “A European agenda for the collaborative economy”

-overall positive assessment of collaborative economy -advice to MS: adapt existing rules to new business models, e.g. market access, taxation, employment -self-regulation

+ establish a monitoring framework for collaborative economy

EFFAT: investigate impact on employment  consequences for existing jobs in the sector  how many and what kind of new jobs are created 3 The short-term accommodation rental market - impact on the sector Greek example*  sharing economy in tourism: turnover = € 1,38 to 1,46 billion  ratio P2P – commercial 10 : 90  12 million overnight stays less in “legally operating hospitality businesses”  € 554 million less turnover  15,000 jobs lost per year  € 260 to 276 million tax loss per year  sharing economy contributes € 27 to 28 million VAT  tax revenues could be + € 322 to 353 million if taxed at same rate as “typical hotel accommodation” * 7/2015 Grant Thornton Study “Operation and Impact of the Sharing Economy in the Hotel Industry in Greece” http://www.grhotels.gr/GR/BussinessInfo/News/Lists/List/ItemView.aspx?ID=577 4 The short-term accommodation rental market - where are the jobs?

 platforms

 companies offering services to hosts of short-term accommodation rentals (STAR)

5 Companies offering services to hosts of STAR (random selection) UK http://www.airsorted.uk FR https://fr.bnbsitter.com IRL http://hostfairy.com/services/ BE https://fr.bnbsitter.com/conciergerie-airbnb-bruxelles NL http://www.airbnbutler.nl/ SE http://airhost.se/ USA http://www.airconcierge.net/ USA https://www.pillowhomes.com USA https://www.guesty.com USA https://urbanbellhop.com USA https://www.airtasker.com/home-and-garden/airbnb-tasks/ CAN http://www.hostservicesgroup.com/ CAN http://www.dhyanacleaning.com/airbnb-cleaning.html USA /CAN https://www.handy.com/home Japan http://www.en.zens.tokyo/ Dubai http://www.higuests.com/ AUS http://www.urbankeyz.com.au/ South Africa http://bnbsitter.co.za/ UK London http://www.bedspoke.com UK Brighton http://www.airhostforyou.com/ Paris, London, Milano http://www.easy-rental-services.com/ London, Barcelona, París, Rome https://hostmaker.co/ New York, Los Angeles, Bogotá, México City, Santiago https://www.hosttonight.com/ 6 Companies offering services to hosts of STAR - what do they offer?

7 8 9 10 11 12 13 14 Companies offering services to hosts of STAR - what is the price?

Company Tagline Services Pricing*

Cleaning, check-in, listing AirEnvy "Your short term rental, management; free linens, 18% airenvy.com managed" towels, supplies

"Your Airbnb managed Beyond Stays brilliantly" "Stress-free Decor advice, photography, beyondstays.com hosting while earning 30% check-in, gift basket, listing 10% to 20% more" management, cleaning

Guest communication, $50 check-in to $125 full Guesthop "Helping you manage your cleaning, check-in, listing cleaning. guesthop.com short term rental" management Full management: 20%

Design consultation, photos, Pad Pipers "Where relationships and key exchange, cleaning, padpipers.com vacation rentals prosper" guest communications, $400 plus 20% marketing

Remotely manages guest Superhost "Your personal Airbnb communication and 3% (1% for limited time) booksuperhost.com assistant" cleaning

$50/check-in to $135/full Urban Bellhop "Host and guest services for Meet, greet and get guests cleaning. urbanbellhop.com your vacation rental" settled Full management: 20%

* Pricing as % of booking fee, unless Source: indicated otherwise, Source: company San Francisco Chronicle, March 2, 2014 websites 15 16 17 Companies offering services to hosts of STAR - who does the job?

18 “What is it like to be a sitter? It's becoming your own boss and managing vacation rentals through the country via our online platform . Your tasks: greet your clients' guests (check-in & check-out) and prepare their accommodation (cleaning and laundry tailored for vacation rental). With Bnbsitter, you decide when you are available and where you accept to provide your services . In a nutshell: you are free . Lots of benefits that make the difference”

19 Are these the future jobs we want?

20 The short-term accommodation rental market – latest activities at EU level

Since 2/2017 – DG GROW Workshops on collaborative economy in the tourism accommodation sector  all Member States + tourism stakeholders • objective: o agree on a set of guiding policy principles to be taken into account by MS when developing policies in the sector • issues: o market access requirement for accommodation providers o requirements for platforms o consumer legislation and trust & transparency mechanisms o tax obligations o employment The short-term accommodation rental market – European associations

European Holiday Home Association (EHHA) www.ehha.eu • Members  Companies: Airbnb, HomeAway, Interhome, Novasol, Lomarengas, DanCenter, Wyndham Vacation, Rentals UK, TripAdvisor  Trade Associations: DE, DK, ESP, FR, IRL, IT, PT, SE, UK • Key figures  Capacity: 20 million beds <–> Eurostat: 31 million beds in total  Volume: 45 million stays in last two years  Annual turnover: 80 billion €  Employees ?

22 The short-term accommodation rental market – European associations European Technology and Travel Services Association (ETTSA) www.ettsa.eu • Members  Companies: Amadeus, ebookers, Expedia, Odigeo, eDreams, Expedia, GoVoyages, HomeAway, Hotels.com, Opodo, lastminute.com, Sabre, Travelink, Travelport, Trivago, venere.com, volagratis  Associate members: SkyScanner, TripAdvisor • Key figures  Size of European online travel market: estimated 50 billion € 57% air travel 17% hotel and accommodation 14.5% tour packages 7.5% rail 4% car rental  Employees > 20,000 people (Amadeus, Sabre and Travelport) 23 The short-term accommodation rental market - what needs to be done?  obligatory registration of all hosts + users of STAR = precondition for statistics, taxation, safety & security, urban planning, etc.  more detailed data on impact of STAR on employment – job losses vs. new jobs  strong labour and social protection legislation applicable to all workers and all types of work  commitment of companies (platforms) and their national / European trade associations to set and implement common rules ►level playing field & fair competition ►decent work & equal treatment for ALL workers 24 Thank you for your attention!

Kerstin Howald Tourism Sector Secretary EFFAT European Federation of Food, Agriculture and Tourism Trade Unions Rue Fossé aux Loups 38 B - 1000 Bruxelles [email protected] www.effat.org

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