By Malcolm Noden
January 28, 2019 8:00 a.m.
In May of 2015, in the Observer, I wrote about the Bed & Breakfast business here in the county, and particularly on Amelia Island. In the article, entitled, “Bed & Breakfasts-The Community Hosts”, I addressed the legal issues and reviewed some of the operating statistics of the industry as published by the Professional Association of Innkeepers International, which is the professional group that represents the national interests of B&B’s.
Much change has come to the hospitality business since that article, and among the major changes that have affected the whole business, are the social, cultural and technological innovations that have affected the business. Perhaps the most significant, is the introduction of, and massive expansion in, the concept known as Airbnb. The concept here is that anyone with a spare room in their home, can join this organization, and then rent out a room to any traveler who wishes to stay in their vicinity. An idea that was born in 2007, by two guys in San Francisco, who were desperately looking for a way to help pay their rent, is now a company worth $25 billion!
The Airbnb organization has subsequently become the world’s largest “hotel” company, which now, at its online site, , has more than five million listings in 81,000 cities around the world! In a recent report, they indicated that Nassau County owners received a total of $2.7 million from 14,000 guests in 2018! In the same report Airbnb says there are now over 45,000 Airbnb homes in Florida, and that each owner typically earned $6,500 in supplemental income. No disrespect, but I’m guessing that Conrad Hilton has already turned over in his grave!
But wait for it—there’s more! In a recent article, Larry Mogelonski of Mogel Consulting Ltd., one of the best known consultants in the hotel field, reports yet another new initiative as part of the newest social concept known as “Sharing Economy.” He calls it the “Hometel”. In the article he points out that travelers are demanding more accommodations that fit their needs, rather than simply accepting what hotels have to offer. He notes that a new hotel brand has emerged in England, called “room2”, and that they have created the brand to test the concept in which they will offer… “the usual hotel amenities such as on-site security, housekeeping, in-room coffee and gym facilities, while also appeasing the home sharing crowd with, kitchens, flexible communal spaces, laundry, and split level mezzanine bedrooms.”
There is no doubt that change will remain the major challenge to “hotel operators” of all types and price levels. Given the current status of the applicable regulations here, I can hardly wait until a new owner proposes the first “Hometel” on Amelia Island, and brings it forward for permit approval by the City Commission!
To quote the Greek philosopher, Heraclitus, “There is nothing permanent except change.”
Editor’s Note: Malcolm A. Noden, who is the (Retired) Senior Lecturer in Management, Economics, Marketing and Tourism at the School of Hotel Administration, at Cornell University, is a well-known expert in the applied economics of hospitality and tourism policy, promotion and development.
Noden is the past Chairman of the New York State Tourism Education Task force, an advisory board appointed by former Governor George Pataki of New York. Noden serves on the editorial board of TEOROS International, a theoretical research journal for education in tourism, and was the Cornell University representative to, and a founding member of, the World Tourism Organization, Educational and Training Board.