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Which makes sense on the supply side too. Hotels have some overhead airbnb doesnt, but at least they have decicated cleaning staff that's working at some level
by rektide 4y ago
Which makes sense on the supply side too. Hotels have some overhead airbnb doesnt, but at least they have decicated cleaning staff that's working at some level of scale.
With Airbnb, there's a huge inefficiency, in that places have to be maintained, but to do so, help staff have to travel all over the place (very inefficient). Back when airbnb was people renting out some extra space or going on vacation for a bit, they'd swallow the cleaning costs as part of the profit. But now that airbnb & others are industrialized, are regular money making operations, the whole question of how these kind of special, spread out businesses compete versus the classic centealized meant-for-the-purpose hotel re-appears, & the economic inefficiency/insufficiency of the "disurptor" becomes clearly apparent.