Back in June, an Airbnb host rented out her apartment in San Francisco while she was away on vacation. She returned to find a severely damaged apartment, with many of her personal belongings stolen. This past week, another Airbnb customer experienced a similar incident, which is still under investigation. EJ, the San Francisco host, posted about the experience on her blog, and it has resulted in an outpouring of criticism and concern, stirring up many questions about the safety and practicality of renting accommodations versus staying in a hotel while traveling. Both eBay and Craigslist suffered similar PR crises when they first started—deals gone badly, customers scamming other customers, or worse.

It's hard to believe that with the popularity of social media and the focus on privacy and security issues that more companies don't have the proper measures in place at the start before opening their business to customers. As a result of EJ's experience, however, Airbnb is now putting security plans into place. Included in them is an insurance guarantee of up to $50,000. Full details are available on the company's website in the new Trust and Safety Center section.

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Despite the recent bad press, short-term vacation rentals can be a great experience and a better economic decision than staying in a hotel. On average, vacation rentals are 30 to 50 percent less expensive than hotels, according to HomeAway.com, the number one short-term rental company. This is especially true for longer-term travel, like a summer vacation or week-long business trip. Home Away currently has 560,000 vacation rental homes worldwide, Airbnb has listings in 10,000 cities, and TripAdvisor's FlipKey lists 100,000 properties. It is a $24 billion dollar industry, and growing. Clearly, there are enough properties to suit every need, and for small businesses or start-ups, it's a smart way to travel for less.