Day: March 31, 2017

Hotel Industry Gripes About Airbnb and Illegal Hotels

Residential building
AirBnB is competing with hotels.

Short-term rental company Airbnb has become a major player in the hospitality business, but is it on the level? A recent industry report shows that the home-sharing service may actually be giving some commercial business operators an unfair and illegal advantage.

Home-Sharing or De Facto Hotels?

Airbnb has widely publicized its concept of matching travelers with people renting out space in their homes. According to a recent report sponsored by the American Hotel & Lodging Association and conducted by CBRE Hotels America, true home-sharing accounts for less than 20 percent of Airbnb’s business.

So what makes up the rest of Airbnb’s multi-billion-dollar revenue? The report states that it comes from “whole-unit rentals where the owner is not present,” which skate dangerously close to being commercial properties like hotels yet are not subject to the same regulations and taxes.

Findings are based on data from Airbnb’s bookings over a two-year period from October 2014 through September 2016. More than 50 percent of the company’s revenues in Miami and Oahu, two major travel destinations, came from hosts with multiple units as opposed to individual residences.

Airbnb Answers Back

Not surprisingly, Airbnb is refuting the report’s findings. Company spokesperson Ben Breit claims that many of their commercial listings actually come from AHLA member properties.

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Trump’s Historic Defense Budget Increases Will Boost Defense Contracting

Swiss military men
Military Defense Contractors Are Eager to Book New Orders.

With his recent budget proposal, President Donald Trump is requesting a “historic” defense spending boost to make good on his promise to strengthen the U.S. military. Still, some lawmakers are questioning whether the amount is truly enough to maintain our country’s position as the world’s strongest military power.

“Making America Great”

Trump’s plan calls for the Pentagon to receive a total budget of $603 billion, which is 10 percent over Congressional caps instituted in 2011 but just three percent more than defense spending during the last fiscal year. Three percent is also only slightly higher than the country’s rate of inflation, which currently sits at 2.5 percent.

Much of the increase is intended for shipbuilding and military aircraft, which would provide a major influx of defense contracting. Trump believes the new budget will strengthen the reputation of “American strength, security and resolve” among the rest of the world.

What Happens Next?

The President’s budget now requires approval from Congress, which could involve several months of negotiations. Lawmakers such as Sen. John McCain, Republican chairman of the Senate Armed Services Committee, object to what they feel is an insufficient increase. On the other hand, Democrats are taking issue with the cuts in domestic programs that are being requested to fund the increase in military spending.

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