Airbnb was launched almost 11 years ago and during that period has established itself as one of the leading services for renting private accommodation. In terms of entrepreneurship and innovation, Airbnb is an exceptional company. The idea of the service is very simple - to provide tourists with a very fast, efficient and intuitive way of renting accommodation. The company is worth over $ 2 billion today and the service is available in almost every country in the world, reports The Next Web.
But Airbnb’s huge popularity brings a number of problems. Many cities cite Airbnb as an important factor in rising rents, lack of accommodation, gentrification and similar disruptive effects on tourism. For these reasons, Sito Veracruz and his partners decided to launch a "fairer" and better alternative - FairBnB.
"I was very optimistic about Airbnb at first because I saw the tourism potential of such platforms for smaller communities," explains Veracruz. "But what I did not anticipate is the extent to which such platforms will be based on profit. "When you realize that 20 percent of service users make 80 percent of the profits, you know something is wrong."
The first difference FairBnB makes is transparency and legality. "We want to work with governments. That is why we are very strict with the rule "one host - one home". We also want to pay taxes at the local level and be completely transparent, "Veracruz said.
"The other difference is that 50 percent of the commission will be used to fund community projects." FairBnB prices will be similar to Airbnb, but commissions will be lower and the structure different. Only 50 percent of the commissions will go to the management of the platform.
But perhaps the biggest difference is in the cooperation. "The platform is owned by a group of people participating in the project, the salaries in the cooperative are limited and everything is very transparent," explains Veracruz. "Over time, the plan is to expand the cooperative and thus give investors and renters the opportunity to participate in the business of the platform."
Veracruz is very optimistic and predicts a bigger expansion of FairBnB within two years, with the help of communities. "Our development strategy is based on local communities - in business, marketing and everything else."
Over time, FairBnB will probably reach the Croatian market and it will be very interesting to see how it will affect the image of tourism in private accommodation and whether it will create healthy competition for the titanic Airbnb.