
Good morning everyone!
Last week, while I was in Philadelphia fighting against the proposed short-term rental tax increase, I found myself thinking about an interesting question:
When should your enemy become your friend?
When short-term rentals first appeared on the scene, they were often called a "disruptor" in the lodging industry. That's a fancy business-school way of saying, "the new kid nobody likes."
Hotels and bed & breakfasts were understandably frustrated. Short-term rentals were operating under a different set of rules. Many weren't paying lodging taxes. Most weren't subject to inspections. They didn't have the same regulatory burdens. They were often cheaper for guests.
Was that fair?
Nope.
But industries evolve.
Today, short-term rentals pay taxes. We obtain permits. We undergo inspections. We pay HOA fees, amenity fees, occupancy taxes, sales taxes, and a growing list of local fees. Many of us follow stricter operational standards than some traditional lodging properties.
So here's the question:
Are short-term rentals still the enemy of hotels and inns?
Or are we simply another form of lodging?
After all, travelers choose accommodations based on their needs.
A couple celebrating their anniversary might prefer a bed & breakfast. A business traveler may choose a hotel. A family of six visiting the Poconos might need a vacation rental with a kitchen, a backyard, and enough room for everyone to spread out.
Different products. Different guests. Same industry.
From where I sit, hotels, inns, resorts, campgrounds, and vacation rentals have far more in common than we have differences. We all depend on tourism. We all care about guest safety. We all want reasonable regulations. We all benefit when Pennsylvania attracts more visitors.
Yet too often policymakers try to divide us.
They tell hotels that STRs are the problem.
They tell STRs that hotels are the problem.
Meanwhile, both sides are paying the bills.
It's time for the broader lodging industry to work together instead of being pushed into opposite corners.
That's why I believe organizations like the Pennsylvania Restaurant & Lodging Association should welcome professionally operated short-term rentals into the conversation. A lodging association should represent lodging in all its forms.
The old battles made sense twenty years ago.
They make a lot less sense today.
There's an old saying (that I might overuse..., but it's a good one!):
The best time to plant a tree was twenty years ago. The second-best time is today.
The same applies here.
The best time for Pennsylvania's lodging industry to come together may have been years ago.
The second-best time is today.
Let's start acting like partners instead of competitors.
Do you agree with me? Drop me a line, I’d love to hear your thoughts on this!
Have a great week!
~Rebecca
Executive Director
Poconos VRO
P.S. And that Philadelphia STR tax proposal I was fighting last week? We won. The proposal was withdrawn before City Council could vote on it. That's what happens when hosts stop assuming someone else will carry the water and instead show up, speak up, and get involved. Advocacy isn't exciting... until the day it saves your business money. Then it's very exciting.