Airbnb alternative to NY hotels runs into a bit of a snag

New York

ADRIEN Marlault, a Parisian businessman and avid runner, has stayed at hotels in the past when running marathons in Berlin, Rotterdam and Rome. But for this year's New York City Marathon, he is taking a different route.

Mr Marlault, who is running the race with his twin brother, found an Airbnb listing in midtown Manhattan that will accommodate both of them for 1,000 euros (S$1,628), much less than a hotel in the area would cost for a week.

"It will be nice to share the experience with someone in the city," Mr Marlault said. "And it's cheaper and nicer than a hotel. For foreigners, it can be difficult to get into the marathon. So it's a bit of an adventure." After exchanging messages with his host, he learnt that she, too, was French, a pleasant surprise.

Mr Marlault is one of thousands of people taking advantage of Airbnb's push into the booming industry of running tourism. But Airbnb's status as an official partner of the New York City Marathon is turning out to be something of a pebble in the sneaker for many involved with the race. Even as it is aligning itself with one of the city's most storied athletic events, the company is at loggerheads with the New York attorney-general's office and local hotels.

A report issued last week by Eric T Schneiderman, the attorney-general, challenged the notion that Airbnb was a boon to needy residents renting out their homes, and said that nearly three-quarters of all Airbnb rentals in the city were illegal.

New York Road Runners, the non-profit group that organises the marathon, maintains relationships with local law enforcement and the mayor's office in the promotion and staging of the race, which this year will be run on Nov 2. Despite the awkwardness of the attorney-general's report, the group has vigorously defended the partnership with Airbnb.

"This is not meant to be a replacement to hotels," said Chris Weiller, a spokesman for Road Runners. "It's an alternative for runners. We see this as bringing the global running community together and we're always looking for ways to get runners engaged. Airbnb is one of the leading communities, and the connectivity opportunity is amazing." Mr Weiller added: "We're aware that Airbnb is working through issues with cities and states. And people should consult their building rules. But we're not involved with those issues and we can't comment on that."

While organisers declined to say how much Airbnb paid for its sponsorship, Mr Weiller said that it is part of a broader effort by Road Runners to benefit runners and New Yorkers.

It reflects the larger appeal Airbnb has had in the choices runners are making as they travel the world to compete in races, as well as a shift in the way people come and go for New York's biggest events. In the early days of the marathon, first staged in 1970, couch surfing was common among a scrappy set of runners, but it wasn't yet a business or politically controversial.

Since then, entries to the race have ballooned and it is now the largest marathon in the world, with more than 50,000 runners registered, as top finishers and plodders alike have pinned on bibs and taken finish-line selfies.

Airbnb said that New Yorkers earned about US$1 million over marathon weekend last year, while hosting more than 10,000 visitors, with about three-quarters from foreign countries.

The company will have cheer zones located throughout the course and provide runners with Airbnb stickers in their goody bags. Although the marathon has long lacked a mascot, Airbnb has created one of its own through its social media campaign, adding stick legs, arms, a headband and running shoes to its own logo - hardly the look of a service that has attracted the ire of the state attorney-general.

Airbnb spokesman Nick Papas said the report's conclusions "rely on incomplete and outdated information . . . (and) we should not deny thousands of New Yorkers the chance to share their homes, pay their bills and stay in the city they love." The marathon uses Hilton and Sheraton as headquarter hotels, but only in providing accommodations for elite runners and VIPs tied to the race. Mr Weiller said that the decision to move some events previously staged at the Mandarin Oriental to the reopened Tavern on the Green had "nothing to do" with the Airbnb partnership and predated the deal's signing.

Members of the hotel industry have been vocal critics of Airbnb. The Hotel Association of New York City declined to make its representatives available for comment. The New York State Hospitality and Tourism Association did not respond to requests for comment.

Greg Hruby, who ran the race in 2009 and had listed his apartment on the Upper West Side on Airbnb, said that although he had a good experience with the site in the past, the attorney-general's report upset him because of how Airbnb was representing itself. "The reality is there are some bad actors out there in the market," Mr Hruby said. "Yet Airbnb says they're out there fighting for the middle class."

For Ricardo Scarlatella, Airbnb provided a counterpoint to the disappointment he felt when an injury caused him to pull out of this year's race. Mr Scarlatella, who works as a broker in the architectural building materials industry, decided he would participate in a different way: by listing rooms in his four-bedroom home on Airbnb at US$120 per night.

"It's a great way for people to take advantage and stay somewhere for a fair price," he said. "And I have a home that I want occupied." NYT