(ATR) Hoteliers are threatening to suspend an agreement with Paris 2024 in angry reaction to Airbnb’s new worldwide Olympic sponsorship.
The U.S. firm and the IOC announced the deal Nov. 18. Filling the category "Unique Accommodation Products and Unique Experiences Services", Airbnb will have marketing rights through the 2028 Olympics. The sponsorship could be worth as much as $500 million.
"Outrageous" is the reaction from the president of the trade association for the French hotel industry, coincidentally holding their annual meeting this week.
Already under scrutiny in France by regulators and viewed with suspicion by the hotel industry, Airbnb’s announcement this came as a surprise says Roland Héguy, president of UMIH.
"Where is the morality? We were very surprised as we have been working since the bid phase with the organizing team of the 2024 Olympic Games in Paris," he is quoted by AFP from the meeting in Biarritz.
The French association has been at odds with Airbnb, claiming the firm engages in illegal competition and avoids taxes.
Héguy says the association is ready to suspend its cooperation with Paris 2024, perhaps putting at risk an agreement securing 40,000 hotel rooms during the Games.
"Should we go backto the globalized contracts between the hoteliers and the organizing team of the Olympics?" Héguy is quoted by AFP.
Tony Estanguet, chair of Paris 2024 has responded to Héguy in writing, assuring that the hotels of France are important partners for the Olympics. In a letter he pledged "to support all the players in the traditional hotel industry, and in particular the hotels included in the Official Games Accommodation Plan, to make this event a success that will mark the history of our country ".
"Your involvement will be decisive," said Estanguet. He says he is willing to arrange a meeting to discuss the concerns of the hotel industry.
Estanguet says Paris will have the option to name a French firm as a hotel sponsor. Reports say Paris 2024 is close to signing a such a deal with the biggest company, Accor. It remains to be seen if the Airbnb sponsorship with the IOC may become a complication.
Airbnb was a national sponsor for the 2016 Olympics and 2018 Winter Games. The company says its corporate values align with the IOC.
In addition to providing housing alternatives to hotels during the Olympics and Paralympics, Airbnb will offer tourist experiences with Olympians around the globe outside the Games. Airbnb will also support the Refuge team organized by the IOC at the Olympics and provide NOCs with accommodations for athletes to use for training and competition.
Reported by Ed Hula.
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