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Airbnb fined £56m by Spain for advertising unlicensed properties

Airbnb says users will now be able to book luxury services like personal trainers, massages and chefs on its redesigned app as it continues to expand beyond its main short-term rentals business. "People choose hotels for their services. People choose Airbnbs for the space... now, we're giving you the best of both worlds", the company's chief executive Brian Chesky said in a statement. It comes just weeks after the firm signalled bookings may slow in the US as President Trump's unpredictable trade policies hit consumer sentiment. Despite hosting more than two billion guests since its launch in 2008, Airbnb has also faced challenges in recent years with some cities moving to ban short lets. Airbnb's new services will initially be available in 260 cities, with the company saying they will cost from below $50 (£37.57). The luxury offerings, which include spa treatments, photographers and makeup artists, can also be booked by people who are not staying in Airbnbs. The company's revamped app also includes an updated experiences tab, allowing users to book bespoke tours and activities. That service was first launched in 2016. The new hotel-like features reflect the changing needs of tourists, Gary Bowerman, director of travel marketing firm Check-in Asia told the BBC. "Travellers are now thinking much more about how to customise the trip for themselves, not just the actual functional parts of how they get there and where they stay." Another feature of the new app is an originals tab, which offers exclusive experiences across the world. This includes playing beach volleyball in Rio de Janeiro with Olympian Carol Solberg or spending a Sunday with National Football League superstar Patrick Mahomes. Bespoke options like this are part of a wider trend as tourists seek out off-the-beaten path experiences, said luxury travel consultant Anastasia Oriordan. "There are so many people that have travelled and done so many things, that the benchmark or the goalpost for unique experiences is constantly moving." By BBC News

The Spanish government has fined property rentals giant Airbnb €64m (£56m) for advertising unlicensed apartments.

It also said that some of the properties advertised in the popular tourist destination were banned from being rented.

The fine, which cannot be appealed against, means Airbnb has to withdraw the adverts promoting unlicensed properties. The BBC has contacted Airbnb for comment.

Spain, one of the top most visited countries in the world, has a buoyant tourism economy but that has fuelled concerns about unaffordable housing, as high demand from visitors raises the price of housing, pushing local people out of the market.

“There are thousands of families who are living on the edge due to housing, while a few get rich with business models that expel people from their homes,” said Spain’s consumer rights minister Pablo Bustinduy in a statement.

Like many countries, Spain’s government is also concerned about how short-term holiday lets can change a neighbourhood, fuelled by a transient population of holiday-goers.

The country has been fighting a battle with thousands of Airbnb listings, banning them and clamping down on how many properties the firm can advertise. In May, there were demonstrations against the firm ahead of the busy summer season.

Spain’s government said 65,122 adverts on Airbnb breached consumer rules, including promotion of properties that were not licensed to be rented, and properties whose licence number did not match with those on official registers.

Writing on social network Bluesky, Mr Bustinduy said: “We’ll prove it as many times as necessary: no company, no matter how big or powerful, is above the law. Even less so when it comes to housing.”
Globally, several popular tourist cities place heavy restriction on Airbnb, including Barcelona, New York, Berlin, Paris and even San Francisco, where Airbnb was founded.

The tech firm started up in 2007 but became hugely popular around 2014, as tourists looked for cheap accommodation without the tax costs imposed on hotels.

Users swelled as anybody could become a “host” and make some extra cash from renting out their spare room – though many major cities have since placed limits on these types of rentals, as complaints of noisy house parties and absent hosts became an issue.

By BBC News

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