The Business Tycoons of Airbnb
Getting ahead on Airbnb is much more simple: just sign multiple leases in desirable locations. Of course, that requires upfront investment and financial savvy. But once it’s up and running, an Airbnb rental network can become seriously lucrative. One operation of 272 listings booked $6.8 million in revenue from 2010 through June of this year, according to the attorney general. The economic forces at play are similar to what the French economist Thomas Piketty discusses in his recent blockbuster book, ‘’Capital in the Twenty-First Century,‘’ only in miniature. In a slow-growth economy, Piketty argues, wealth delivers better returns than labor, so those with wealth to invest in things (like, for example, rent-earning apartments) will tend to get wealthier; those without probably won’t. Listing a spare room on Airbnb might keep you current on your always-climbing Manhattan rent, but real entrepreneurship (as always) requires real dough.
AirBnB is literally a platform for wealthy people to engage in rent seeking.