Short Term Rental Accommodation Industry Regulation Challenges
I’ve been involved in industry advocacy for the past decade since Welcome In was established. First and foremost as an owner and manager of two short term rental accommodation (STRA) properties in WA and then as a business development consultant to the niche sector within the tourism and leisure industry.
Industry regulation has been a process for most of the past decade with digital disruption. I first noticed such disruption when a friend told me about Stayz, now HomeAway. This was back when Stayz was owned by Australian business, Fairfax, who acquired it off founders in 2005, later acquired by Expedia in 2013 - a global corporation.
When it was first introduced to us it would’ve been 2008/9. An owner could list their property and a guest could book it. There were also other basic management administration functionalities such as a cleaners log for example. We paid an annual listing fee of I think $160 per year, per property and the commission used to be a flat rate per day booked fee. I think it was $11.90 from memory or maybe it was $8.90 - I can’t remember.
Fast forward a decade and there are many other booking portals or Online Travel Agents (OTA’s) that allow for online bookings including Airbnb, Booking.com etc. All contributing to an increased supply of home style short term accommodation that I personally grew up with and loved - it was exciting to think we could rent our property in the Perth Hills short term while retaining it for ourselves to utilise when we returned home for visits (while we were working and living interstate in QLD). This increased supply was met with an equal, if not higher demand. Consumers wanted residential style short term accommodation because it was homelier and more affordable for group or family travel.
It’s not the only industry that’s been disrupted though. There are many more examples including Uber, Netflix, Scribe, Isubscribe etc - even Gumtree and RealEstate.com.au were early innovators in this space in Australia. So many more emerging right in this very moment. There are start up incubators actively seeking technological solutions to many of the world’s problems and inventing collaborative consumption businesses left right and centre right now. Peer to peer, cutting out the middle person/ business.
I could go on and on about this. It’s a reality. The world is changing and all we can do is embrace it and keep it fair and safe. Each state and territory in Australia is at different stages of review and regulation. Here’s a summary;
“The McGowan Government is adopting nearly all of the recommendations arising from the recent parliamentary inquiry into short-stay accommodation.
The whole-of-Government response to the 2019 Parliamentary Inquiry Levelling the Playing Field - Managing the impact of the rapid increase of Short-Term Rentals in Western Australia aims to introduce better management of the industry at a community level.
Led by Jessica Shaw MLA, the inquiry presented 10 recommendations to improve outdated and inconsistent policy governing short-term rentals, and create greater certainty for the tourism industry, accommodation providers and guests.
The inquiry found that short-term rentals are a genuine income source for some people and are increasingly widely used by guests; however there was no regulation of the industry and numerous examples of adverse impacts on neighbours and local communities.” (McGowan Government, Western Australia). Read More.
I feel like I'm getting to that stage in my career where I know a bit about the short term and holiday rental accommodation industry in Australia and so if you'd like to read more articles to help you grow and sustain your operation/ business you might like to subscribe (free) to receive my blog articles in your lovely inbox.
I'm also on Facebook! Instagram & Linked In!
Have a superb day!
Cheers
Natalie :)
