[picasso81]

Airbnb didn't invent vacation rentals or sublets. VRBO/Homeaway and Craigslist, the dominant players in the space, have been doing this for years. You bring up good bullet points but if they were real issues, Homeaway probably wouldn't be the $1B company it is today. This is nothing more than hotel lobby groups pushing a bill through their pockets. Occupancy rates are recovering from an all time low (as in lowest in 40 years) and they see cutting off vacation rentals as a strategy for improvement. Mayor Bloomberg even thanks the Hotel lobby groups in his press release http://bit.ly/9iNt3Q. Separately, there seems to be a misconception that Airbnb is hands off with taxes, when in fact hosts who meet the appropriate income standards are issued a 1099 form.

Over time, a city like NY will most likely see a drop in tourism if (a) if the vacation rental industry is removed from the playing field, and (b) hotel prices stay the same (or go back up to 2007 standards). There is a large class of travelers who cannot afford NYC on $300/night rates, and will likely still travel, but choose to spend their money elsewhere.

[callmeed]

First, I wasn't necessarily taking a side–more posing the question "could enough govt pressue hurt AirBnB's business?"

Second, I think the comparison to VRBO/Homeaway only goes so far. Those 2 sites cater primarily to vacation/2nd home owners (i.e. renting out an entire house/condo for week). You don't see many "Rent out my extra bedroom for $60/night" listings on there. Unless I'm mistaken, that's where AirBnB differentiates itself and, IMO, makes it more risky.