Fairbnb is here to give travelers what Airbnb lacks

May 21, 2019
Share this Post: 

Are short-term rental businesses harming neighborhoods and housing markets? This nonprofit co-op is looking to turn tourist trends into community assets.

In recent years, Airbnb and its competitors have been accused of making housing unaffordable, of draining homes from the long-term rental market, and of eviscerating the character of popular neighborhoods through displacement and overexploitation. In an era punctuated by the effects of a housing shortage, it can seem that vacation rentals stand at odds with the solutions cities and residents are searching for.

But does the business of short-stay rentals have to be so ethically fraught? An ambitious project based in Amsterdam says no.

It’s called Fairbnb, and it’s trying to refashion the home-sharing model so that short-stay apartment rentals can enrich the amenities and housing choices of the communities that host them.

“For a long time, the social impact of traveling was rarely taken into consideration—because at first with vacation apartments, people didn’t feel it,” Sito Veracruz, a co-founder of Fairbnb, tells CityLab. “We are now reckoning with the damaging impact of tourism on communities, not just because of the industry’s growth, but because of its huge expansion into residential areas.”

The project, if successful, could provide a sustainable alternative in a sector where, as Fairbnb’s own promotional material notes, “the promise of ‘home-sharing’ has turned into ‘home-stripping.’”

Fairbnb has been building this alternative for three years now. It already has co-op members in Italy, Spain, the Netherlands, and Lithuania, and has spent time consulting with communities in cities across Europe, including Venice, Bologna, and Barcelona.

While it is only just preparing to accept registrations from hosts, its community-building exercises have attracted more than 700 people who are ready to list their homes. As its launch date nears, Fairbnb is now going through a crowdfunding push, mainly to fast-track technology development, such as a mobile counterpart to its upcoming online site.

Fairbnb’s model diverges from the standard model in several key ways. Like other home-share sites, it plans to levy a commission on bookings (in Fairbnb’s case, of 15 percent, which is broadly similar to Airbnb). Half of this money would be fed back into the local community where a unit is rented out.

Read more here

Join us in Miami Beach, June 5-7 for the Global Online Marketplaces Summit.

Miabannermay12

Read more

May 21, 2019

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Costar Q1 2024 Feat
CoStar Group Q1 Results: Homes.com Drives 12% Year-on-Year Revenue Growth to $656 Million

CoStar Group has released strong financial results in the same week that it announced its intention to acquire Matterport for...

Read More
Hemnet Feat
Hemnet Q1 2024: Strong Performance Across the Board for Swedish Market Leader

Swedish market leader Hemnet has revealed impressive results for the first three months of 2024, recording healthy double-digit growth YoY...

Read More
Costar Matterport
CoStar Group to Acquire Tech Firm Matterport for $1.6 Billion

CoStar Group has announced it will acquire the industry-leading real estate tech firm Matterport for $1.6 billion subject to shareholder...

Read More
Shutterstock 181374380
FangDD Full Year Financial Results for 2023: Net Losses Shrink as Revenues Rise

Chinese portal FangDD has released its full-year financial results for 2023, with optimism despite China's slow recovery post-pandemic. Highlights include:...

Read More

Editor's Pick