When Auckland Council adjusted its rates for online accommodation providers in the city, hosts were up in arms.
Perhaps rightfully so, as some hosts claim they had a 225 percent spike in rates costs.
For a sector that hosted over half a million guest nights in Auckland in 2017, an increase of that scale could have quite an impact. However, Airbnb marketing specialist, Stefan Nikolic believes that the rising costs won’t affect hosts too much.
“As with any business, the cost increase will be passed on to the consumer and reflected in an increase in nightly rates on Airbnb,” Nikolic said.
Additionally, the price of Airbnb guest nights will still be below that of a hotel or motel. “Although the price gap will close a bit it will still be cheaper for punters to book with Airbnb, therefore Airbnb will continue to be perceived as the most cost-effective option in the eyes of the public."
Despite rising rates for online accommodation providers in Auckland, hosts should not struggle to maintain returns. Airbnb’s price point is now closer to a hotel’s price point, which was the intended effect of the ‘bed tax’ in the first place.
