Airbnb's concept, however wonderful it may be when it does work, is full of practical and legal holes which are now beginning to emerge.
The big question is: can Airbnb close those holes without significantly reducing the usefulness of their service?
I very much doubt that. Hospitality is an industry with a long history, lots of regulation and self-regulation (which is not just corrupt government protecting incumbents), and disrupting that means tackling a huge range of issues an liabilities which Airbnb heavily oversimplifies.
I expect an increase in regulatory intervention, horror-stories in the media, lawsuits and Airbnb becoming increasingly more bureaucratic and complex in an effort to handle that.
The big question is: can Airbnb close those holes without significantly reducing the usefulness of their service?
I very much doubt that. Hospitality is an industry with a long history, lots of regulation and self-regulation (which is not just corrupt government protecting incumbents), and disrupting that means tackling a huge range of issues an liabilities which Airbnb heavily oversimplifies.
I expect an increase in regulatory intervention, horror-stories in the media, lawsuits and Airbnb becoming increasingly more bureaucratic and complex in an effort to handle that.