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jmyeet • today at 3:23 AM • 0 replies • view on HN

Airbnb illustrates two points really well:

1. Just like all the add-on charges with air travel like having a checked bag or choosing a seat, a lot of negative experiences come from consumers making decisions solely based on price. This creates an incentive to leave things out to have a lower sticker price. Hotels with non-optional "resort" fees, cruises, and car rental all operate on this model.

The specific issue with Airbnb is the supposed lower cost comes for hiding costs like cleaning. Cleaning is expensive when you start talking about an apartment let alone a house. This is built in to the hotel price (minus tips, which are minor). Also, hotels avoid having the potential for a lot of cleaning (eg a full kitchen).

You might stay in an Airbnb and never use the kitchen, existing totally on eating out. Or you might cook a full Thanksgiving dinner for 20 people and use every dish and appliance in there. How are you meant to handle this when the cleaning cost could be $100 or $1000?

2. Airbnb like oh so many "tech" companies profits by pushing the negative externalities of their business onto people who didn't consent. The most notable negative externality is running an illegal hotel in a residential neighborhood. Hotels have staff, fire codes, licensing and inspections. Some random house does not.

Another is that the house owner never has to suffer from disruptive behavior from guests who may never return. I really think more places should restrict Airbnb to ADUs only when the owner is on-site.

Also, the evidence that Airbnb has driven up rents is undeniable at this point with more than a decade of evidence.

At the same time, hosts clearly profit off of unreasonable charges, like charging $300-500 to "clean" a studio apartment that might only take an hour. It's a bit like landlords stealing security deposits. It's particularly egregious when you're given a random list of tasks you must do, such as stripping sheets and starting wash cycles, etc.

Intermediation businesses are generally bad. The only way to increase profits at a certain point is by cutting costs and raising prices. The other parties want to avoid the middleman charges and go direct. It's why all these businesses like finding cleaners, tutors, etc all only go so far because people go off-platform.