Hotels Go to War with Airbnb

Mar 14, 2016

New national lodging service, Airbnb, has come under fire lately. The American Hotel and Lodging Association (AH&LA) is lobbying for more government regulation of the peer-to-peer lodging company. The association argues that Airbnb should follow the same safety and health standards, and pay the same taxes as all hotels do. But Airbnb claims they are a fundamentally different business from hotels, and should not be treated as such. So far Airbnb is still not classified as a hotel service.

Airbnb spokesman, Nick Papas, said the success of the company is due to everyday people’s desire to supplement some income by allowing others to share their homes. Thus far, there have been over 70 million guests that have stayed the night at an Airbnb residence in over 34,000 cities. Papas predicts that this number will increase this year, as travelers seek a more personal experience from their travelling experience than can be found in a traditional hotel.

Recent CBRE Hotels’ Americas Research shows that travelers spent $2.4 billion with Airbnb between October 2014 and September 2015. Over 55% of that $2.4 billion was spent in: San Francisco, Miami, New York, Los Angeles, and Boston. CBRE hotels executives believe that Airbnb could keep hotel rates from rising. Airbnb’s continued success may even slow new hotel construction.

AH&LA President Katherine Lugar calls Airbnb’s hotels illegal. Since Airbnb is comprised of a network of dwellings, they don’t have the traditional type of inventory like hotels. This is one of the major reasons why Airbnb has not been made to follow the same health and safety guidelines as regular hotels. Hotel executives know that Airbnb is here to stay, but they will continue pushing for Airbnb to live by the same rules as regular hotels.

Airbnb is one of the most successful lodging enterprises of the 21st century. If you want to start your own hotel business, you’ll need an experienced payment processor to manage your account. It’s important to have hotel credit card processing and chargeback protection to fight fraudulent charges. EMB is the online payment processor for you. Contact to learn more about our merchant services.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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