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Rental laws limit Airbnb's rapid growth
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3rd January 2017
Here is a really good contextual example of how regulatory interventions affect revenues, profits and the rate of growth of a business.
Rules limiting home rentals to 90 nights per year are to be enforced by AirBNB (previously, they left it up to the home-owner). This is expected to cut forecast revenue by more than £300m a year.
The hotel industry claims that AirBNB is gifted a competitive advantage because homeowners who rent out rooms can earn up to £7,500 tax-free whereas hotels are subject to value added tax.
You will find more statistics at Statista
Airbnb is a privately owned accommodation rental website which enables hosts to rent out their properties or rooms to guests who use the website to find somewhere to stay.
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