30,000 Unregistered Airbnb Listings Evaporating? "Illegal Expulsion" – Survival Strategies for Hosts Amidst Airbnb's Strong Stance
Recently, the domestic shared accommodation market is in an uproar as Airbnb has taken strong measures to completely block bookings for unregistered listings. This action, which was forewarned last year, is estimated to cause approximately 30,000 listings to disappear from the market.
This signals a major change in a market that has long operated through illicit means, remaining in the blind spots outside regulatory frameworks. At this juncture, which presents both a crisis and an opportunity for existing and prospective hosts, what strategies should we adopt?
1. What Has Changed: The Complete Expulsion of Unregistered Listings
Key takeaway: Starting October 16th, Airbnb listings that have not submitted business registration information and certificates will be blocked from receiving bookings after January 1st, 2026.
It's true that despite current tourism promotion laws only permitting 'tourism urban homestay businesses' for foreign visitors, there were many illegal listings targeting domestic guests, leading to tax evasion, sanitation deficiencies, and noise complaints. Airbnb's latest measure seems to be an unavoidable decision to restore order in this market.
2. Market Changes and Opportunities Faced by Hosts
Key takeaway: The expulsion of illegal listings is expected to bring 'spillover benefits' to legal operators, but there is also a possibility of overall accommodation price increases.
This measure will push the market in two main directions:
- Opportunity (Spillover Benefits): This is a big opportunity for hosts who have been operating legally. With unregistered listings, which were engaged in low-price competition, disappearing, a shift in demand towards legal accommodations can be expected.
- Crisis (Price Increase and Increased Competition): Similar to cases in New York or Tokyo, the disappearance of unregistered listings may lead to a shortage of supply, potentially increasing prices for existing accommodations like hotels by over 10%. Additionally, there's a possibility that expelled listings might migrate to foreign platforms or short-term rental apps with looser regulations.
3. Three Survival Strategies for Airbnb Hosts
The attitude of 'things will work out somehow' will no longer suffice. It's time to re-evaluate strategies for Airbnb hosts to survive and grow.
Strategy 1: 'Legality' is Essential, Not Optional (Entering the Regulatory System)
This is the most basic and crucial strategy. The core of this measure is the 'expulsion of unregistered listings.'
- Tourism Urban Homestay Business Registration: Since accommodating domestic guests is generally illegal under current laws (except for some rural homestays), registering as a 'tourism urban homestay business' targeting foreign tourists should be a top priority.
- Business Registration and Tax Reporting: For legal operation, transparency in business registration and tax reporting issues is crucial. This is the first step towards building market trust.
Strategy 2: Providing Differentiated Customer Experiences (Recognizing Customer Segmentation)
Airbnb users and small/medium-sized hotel users may constitute different customer segments. It's important to enhance the value of your listing as a 'place to experience,' not just a 'place to sleep.'
- Aesthetic Interior: Strengthen aesthetic interiors and amenities that embody the essence of Airbnb: 'experiencing local life.'
- Hygiene and Safety: Poor hygiene and noise complaints were chronic problems of illegal listings. As a legal host, building trust by providing professional cleaning service-level cleanliness and noise prevention guidelines is essential.
Strategy 3: Continuous Monitoring of Regulatory Changes
Currently, active discussions are underway between the government and the industry regarding improvements to the shared accommodation system.
- Watch for System Reforms: The government is reviewing measures to improve the accommodation industry promotion system, and organizations like the Korea Economic Research Institute have proposed 33 reform proposals, including allowing domestic guest operations and abolishing the owner's actual residency requirement.
- Government Administrative Support: There is a strong call for governmental administrative support to ensure the stable normalization of the market. It is crucial to quickly grasp and respond to these regulatory changes.
Airbnb's strong measure to 'expel illegal listings' may cause short-term confusion, but in the long run, it will restore market order and provide new opportunities for legal hosts. Now is the time to compete not by avoiding regulations, but by entering the regulatory system and offering differentiated services and quality.
As an Airbnb host, how are you preparing for this change? If you have any survival strategies or opinions, please share them in the comments.
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