I am not a supporter of a totally free market from any intervention. The reason is because when this happens, a few big players may monopolise the market and we may not have good competition to keep everyone on their toes. I love to book short-term stays when I go for holidays because it’s convenient and usually cheaper. When I travel alone, I will prefer to book hotels instead because I may want to have a good buffet breakfast, have a swim or drop by the gym. This is why I think it’s fair for all players to be judged based on the same set of regulations and criteria.
Article in edgeprop.my here. Low Yat Group executive director Low Su Ming said the short-term stay trend has affected the industry as they are currently not subject to service, delivery, quality and safety standards the hospitality players are subjected to as licensed players. he said, “These markets differ in many ways with the number of properties listed and the reasons for regulations but they have paved the way for countries like ours to observe and build our own regulatory framework.”
Major cities like New York, Paris, Japan and others have built a stringent regulatory framework which includes limited stay days, need for an owner to be present in the residence, fire and safety certification requirements and tax declarations for the short term stays. He added, “We appreciate fair competition and entry of more options into the market as it makes for a robust environment, but this is not a balanced space.” She shared that these are some of the inputs for how prices are determined: licenses, marketing, workforce, facilities, services, refurbishment, maintenance, location and local taxes to consider. Please do read the full article here. Article in edgeprop.my here.
I still remember the debate I had with my friend who told me that GRAB is the best because it’s way cheaper than the usual taxi. I reminded him that in the beginning, GRAB was cheap because a lot of the fare was subsidised by the company. They needed the market share. Once everything is normalised, GRAB will have to be a normal company, abiding by regulations and charge normal rates with sufficient margins for them to operate as a for profit organisation. I think everyone has gotten the answer that this normalisation will continue to happen yeah. No company can keep subsidising their businesses forever. Happy understanding every time we come across these prop tech related companies which are said to be disrupters.
<Featured Image is courtesy of Stock Photos from Chinnapong>
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