Skift Travel News Blog

Short stories and posts about the daily news happenings around the travel industry.

Short-Term Rentals

Airbnb and a Tenant Blocked From Listing an Apartment in a Banned NYC Building

5 months ago

The implementation of New York City’s host registration law last month has enabled one landlord to win a temporary restraining order against both Airbnb and a host from listing a short-term rental in an Upper West Side apartment building that put itself on the Office of Special Enforcement’s banned building list.

An NYC home that was listed on Airbnb years ago. Source: Flickr.com/Pietro and Sylvia https://tinyurl.com/mur8ukak

The Rosenberg & Estis law firm, which represents property manager Canvas Property Group for the building owner, characterized the temporary restraining order it obtained last month as “a precedent-setting victory.”

The two sides are slated to face off over making the temporary restraining order permanent in a New York state court in late October. The plaintiff sued Airbnb and the host, who the law firm stated never lived in the 3-bedroom Columbus Avenue apartment, for damages.

The Real Deal first reported the existence of the lawsuit, adding that a second landlord filed suit, as well.

As of late August, more than 10,000 buildings had applied to the city to be put on a list of buildings where tenants would be barred from offering their apartments as short-term rentals, and major platforms such as Airbnb, Booking.com and Vrbo would be prohibited from displaying them.

Although Airbnb and the city have been at loggerheads for years over New York’s regulations, which ban the bulk of properties that were formerly listed, Airbnb and the city are believed to be now working together on the implementation of the registration law. Airbnb counts on the city’s verification system to flag illegal listings, including those from hosts in buildings where they are barred.

Airbnb had no comment on the lawsuits on Saturday.

Hotels

California Takes Aim at Junk Fees: New Law Mandates Upfront Pricing from July 2024

5 months ago

California Governor Gavin Newsom signed into law on October 7 a bill to ban mandatory hidden fees — also called junk fees — starting July 1, 2024.

“The price Californians see will be the price they pay,” said Rob Bonta, the state attorney general.

As Skift previewed, the law broadly requires upfront disclosure of any mandatory fees by hotel companies, online travel agencies, car rental companies, online concert ticket sellers, and others.

If a company doesn’t comply, a consumer could seek “at least $1,000” in damages via the state’s existing consumer protection claims processes. (See the law, embedded below.)

Junk Fee Reform

It’s unclear how California’s new law will impact companies in mid-2024.

California has the largest population of any state in the U.S., and so some big companies choose to apply its requirements nationally.

Yet there could be lawsuits from industry groups, and corporations could find workarounds to keep profitable fees. California has rules on fees for car rentals, but many online travel agencies choose to display those fees in ways that vary depending on jurisdiction.

Another wrinkle: Newsom hasn’t yet taken a position on another bill awaiting his signature, Senate Bill 537. He has until Saturday night to decide whether to let that bill pass into law. The bill would prohibit businesses that sell lodging for up to 30 days in California from displaying a room rate that doesn’t include all fees or charges (except government-imposed taxes) as of July 1, 2024.

It’s possible the Governor may feel the bill he’s signed already covers this, making a law specific to hotels unnecessary. Either way, the state’s 6,000 hotels and thousands of short-term rentals are currently facing new rules about the display of so-called junk fees, such as resort fees and housekeeping fees. 

Here’s the legislation that’s just passed: