Airbnb has described the safety and privacy of the people who use the service - both online and offline - as a priority.
The online accommodation platform was responding to reports that a New Zealand family discovered a hidden camera at their accommodation in Cork.
In a travel blog, Nealie Barker, her husband Andrew, and their five children who are travelling in the UK and Ireland, described the discovery as "a spectacular Airbnb fail".
Ms Barker also highlighted the issue on facebook.
Airbnb has said that its policies strictly prohibit hidden cameras and that it takes reports of any violations extremely seriously.
In a statement tonight it said: "We have permanently removed this bad actor from our platform".
A bad actor refers to a host who has not respected the platform or Airbnb guests.
The company said that its original handling of the incident did not meet the high standards it sets, and that it has apologised to the family and fully refunded their stay.
In a statement, the Data Protection Commission said it is aware of the issue and will be "seeking further information" from Airbnb on the matter.