Overheard: The downside of Airbnb rentals on tour operations

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Pattaya, Thailand

WHILE the overwhelming success of the sharing economy has roiled the hotel industry the world over, tour operators are not spared some of the fallouts as peer-to-peer travel grows in popularity in Asia.

At least one travel supplier is lamenting the impacts of vacation rentals on its operations, as some FITs who take to Airbnb to book accommodation in Thailand are not able to give clear directions on their pick-up locations for day trips, resulting in miscommunication and anguish on both ends.

“We have had FIT clients telling us to pick them up in condominiums, private houses and even gated communities,” said Chakrawooth Kaewjunthong, product manager and deputy general manager at Alibaba Group Holding, a Bangkok-based B2B travel wholesaler.

“However, when we ask for their specific locations, they’re unable to give details of where they are. Sometimes, the apartment owners are not Thai and are not able to help by giving clear directions to their residences too.”

This situation is particularly severe in Pattaya, a popular tourist and real estate investment destination in Thailand and where holiday rentals via Airbnb are increasingly prevalent, according to Chakrawooth.

Thai Hotels Association president Surapong Techaruvichit had earlier urged the government to clamp down on owners who rent their condo units, resort homes and shared rooms on a daily basis using Airbnb as they are violating the Hotel Act.

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