What The Sharing Economy Means To The Future Of Travel

2y ago
92 Views
24 Downloads
4.36 MB
26 Pages
Last View : 23d ago
Last Download : 2m ago
Upload by : Madison Stoltz
Transcription

What theSharing EconomyMeans to theFuture of TravelSKIFT REPORT #72013Collaborative consumption, once an idealistniche for hitchhikers and backpackers, hasgrown into a multi-billion dollar industrythanks to the economic, social andtechnological changes of the past decade.How can incumbent companies learn fromthis fast-growing segment of the travelindustry?By Vincent Trivett and Skift StaffSKIFT.COM

Subscribe to the SkiftTrends ReportGet the twice-monthly Skift Trends Report for the latest intelligenceon the travel industry.Each edition in our new series of reports will brief you on a specifictrend, providing insight into the current state of the market, the context around the trend, and where the industry is heading in the nearfuture.After you subscribe, you will receive 24 reports direct to your inbox foran entire year. Reports are delivered as a downloadable PDF. Subscribers also receive access to our archive.For any comments or questions, email us: trends@skift.com.Subscribe and check previous reports at skift.com/travel-trends.

What the Sharing Economy Means to the Future of TravelSKIFTREPORT#72013Executive summaryNot your everyday hotelroomCourtesy AirbnbWith the global economic downturn and increasing trust of the Internet and online payments, there has been a major shift towards accessof goods over ownership of them. The travel industry is the sectormost affected by the meteoric growth of sharing and collaborativeconsumption.The sharing economy is not new, but it has exploded in recent yearsthanks to consumers’ increased awareness of idle assets. Consumerto-consumer vacation rentals and ride share bulletin boards havebeen around for years, but efficient online payments and trust ine-commerce have made sharing into a viable alternative for themainstream. Startups like Airbnb, Carpooling and Lyft have enjoyedtremendous growth. They now operate on such a scale that they arematching mainstream hotels and transportation companies in convenience, and usually beating them on price.The growth of collaborative consumption is not just about cashstrapped travelers settling for a less luxurious option, however. In fact,it is growing in popularity for high-end consumers. Trust in strangers,and a desire to travel like a local rather than a tourist are also on therise. Sharing and communing with locals is the best part of participating in collaborative consumption.This trend has serious implications for hoteliers, rail, short-haul airlines, tour guides and destination marketers, but this doesn’t meanthat they can’t incorporate the best of the sharing economy and stayrelevant.3

What the Sharing Economy Means to the Future of TravelSKIFTThis trends report will look at the economic, social, and technologicalchanges that drives customers toward the sharing economy, especiallyfor accommodation and ground transport. Through an examination ofthe advantages of new sharing businesses, we will make recommendations for incumbent players in the travel industry to avoid disintermediation.4REPORT#72013

What the Sharing Economy Means to the Future of TravelSKIFTREPORT#72013Table of contentsExecutive summary 3About SkiftWhat the Sharing Economy Means to the Future of Travel 6Behind the trend 6Before the buzzword 6The modern sharing economy is for profit 6Drivers for growth of the sharing economy 7Economic factors 8Technological factors 9Social factors 10Sharing and travel accomodation 11Differences between vacation rentals and peerto-peer hotels 11Advantages of sharing for accommodation 13Home away from home 14Diversity and local flavor 14A much better “concierge” 15Key takeaways for hoteliers 16Sharing ground transport 18The advantages of sharing transportation 18Ridesharing 18Longer trips 18Peer-to-peer taxis 19Insurance and ride sharing 20Peer-to-peer rental cars 20What traditional transport companies could learnfrom ridesharing and peer-to-peer rentals 21Airbnb Vs. New York City: The Defining Fight of theSharing Economy 23Further reading 25About Skift 265Skift is a travel intelligence company thatoffers news, data, andservices to professionalsin travel and professionaltravelers, to help themmake smart decisionsabout travel.Skift is the business oftravel.Visit skift.com for more.

What the Sharing Economy Means to the Future of TravelSKIFTREPORT#72013Behind the trendA happy Airbnb userSource: Jennifer Morrow onFlickrBefore the buzzwordThe shift from ownership to access istransforming almost every industry, andtravel is one of the most affected. Tradi-Sharing unused resources or trading ac-tional travel providers should take heed andcessibility for money or in-kind is ageless.understand the market to remain relevant.In travel, it is nothing new. Before buzzworthy startups like peer-to-peer accom-There are several names for the phenom-modation broker Airbnb appeared in theenon of the sharing economy that are usedspace, Couchsurfing, an early online socialinterchangeably, including collaborativenetwork, connected travelers with hostsconsumption and the peer-to-peer econ-willing to put them up free of charge inomy. Rachel Botsman, co-author of What’sspare bedrooms or on couches. Couchsurf-Mine is Yours: How Collaborative Consump-ing still has 6 million members, but for thetion Is Changing The Way We Live definesmost part it mostly served a skint youngthe phenomenon thusly: “Collaborativecrowd. Long before the web, Servas Inter-Consumption describes the rapid explosionnational, a non-profit founded in 1949 by ain swapping, sharing, bartering, trading andpeace activist, did the same. Subscribers torenting being reinvented through the latestServas paid a nominal fee for membershiptechnologies and peer-to-peer market-and agreed to open their doors to otherplaces in ways and on a scale never possibletravelers in the network.before.”The modern sharing economy is for profitSharing and collaborative consumption intravel is nothing new, but a bevy of techno-“‘Commercialization’ of the sharinglogical, economic and social developmentseconomy didn’t begin in 2007, if viewed ashave turned it from a counter-cultural,part of an evolution that began (for modernbackpacker’s niche to a massive business.purposes) with the establishment of the6

What the Sharing Economy Means to the Future of TravelSKIFTREPORT#72013The old waysSource: Payton Chung onFlickrInternet and, later, social and mobile tech-disruption by this new model. Tuck Analysisnologies,” says April Rinne, Chief Strategyfound that of those who use one sharingOfficer at Collaborative Lab, who also leadscategory, 71 percent shared transportationthe sharing economy working group at theand 20 percent shared travel accommoda-World Economic Forum. “We began to sharetion. The value of private travel accommo-more, and different, kinds of things -- oftendation in Europe alone is projected to reachfor money. First we shared bits of data, then 15.4 billion by 2017.email, then things like photos and moviesSharing unused resources or trading ac-and music, and -- more recently -- physicalcessibility for money or in-kind is ageless.assets and experiences. So Airbnb today is,In travel, it is nothing new. Before buzz-in some ways, a successor to photo-sharingworthy startups like peer-to-peer accom-and music-sharing sites of years ago, manymodation broker Airbnb appeared in theof which were commercial as well.”space, Couchsurfing, an early online socialnetwork, connected travelers with hostsThe European Commission report “Thewilling to put them up free of charge inSharing Economy: Accessibility Basedspare bedrooms or on couches. Couchsurf-Business Models for Peer-to-Peer Markets”ing still has 6 million members, but for thesays that an estimated 3.5 billion of rev-most part it mostly served a skint youngenue will flow through the sharing economycrowd. Long before the web, Servas Inter-directly into users’ wallets, not countingnational, a non-profit founded in 1949 by athe revenue generated by companies thatpeace activist, did the same. Subscribers tofacilitate the transactions. High-cost andServas paid a nominal fee for membershiplow-use goods are the most likely thingsand agreed to open their doors to otherto be rented out, making accommodationtravelers in the network.and transportation prime candidates for7

What the Sharing Economy Means to the Future of TravelSKIFTDrivers for growth of the sharingeconomyIn their 2011 book, Rachel Botsman andmeans. Not all of it is intentional, mindRoo Rogers identified technology, costyou: low cash flow (or none at all) is mostconsciousness, environmental concerns,certainly driving many customers to rentand a resurgence of community as the mainrather than buy,” says Sarah Millar at Con-drivers of the sharing economy. Dutch aca-vergex Group, a brokerage. “Many of thedemic Pieter van de Glind confirmed this insharing and rental services you can find ona survey.the Internet, for example, were foundedbetween 2008 and 2010 — that’s not a“Practical need, financial gains and receiv-coincidence.”ing praise from others are the main extrinsic motives. The main intrinsic motives areAcademic studies of attitudes and moti-social and environmental. Besides motiva-vations for participating in collaborativetional factors, networks, (social) media andconsumption point to economic benefits asrecommendation prove to be explanatorythe main driver. Juho Hamari and Antti Uk-factors for the willingness to take part inkonen of the Helsinki Institute for Informa-collaborative consumption,” he writes.tion Technology found that money-savingis more prevalent for motivating people toSeveral major economic, social and techno-participate.logical changes that came about in the laterpart of the last decade made the sharing“[Collaborative consumption] has beeneconomy grow into a significant part of theregarded as a mode of consumption thattravel industry.engages especially environmentally andecologically conscious consumers. OurEconomic factorsresults, however, suggest that these aspirations might not translate so much intoAmericans and Europeans know that rela-behavior as they do into attitudes,” theytives who lived through the Great Depres-write.sion had a skill for thrift. People who dealwith lean times tend to waste as little asEven those who aren’t directly affected bypossible, and reuse disposable items thatthe rise in unemployment in rich coun-others may throw away without a thought.tries since 2007 are eager to find ways toThis current generation of travelers whosave on travel. While incomes stagnated,experienced the late 2000s economic col-households had extra pressures such aslapse and subsequent fiscal austerity aremortgage debt, while the younger popula-similarly price and efficiency-conscious —tion in America struggles to pay off studentbut they have the tools to connect ownersdebt. Meanwhile, gas prices, and therefore,of transportation and space to those whoairfare increased and hotel rates stayed theneed it.same. The growth of the sharing economytook place alongside declining rates of“Renting and sharing allow us to live thehome and car ownership in the Unitedlife we want without spending beyond ourStates and Europe. The generation that8REPORT#72013

What the Sharing Economy Means to the Future of TravelSKIFTREPORT#72013came of age indebted may aspire to ownership, but it is willing to settle for access tosuch things instead.Such travelers are more aware of idle orexcess assets. Sharing allows owners tomake money from their idle cars, reducingthe cost of ownership, and gives potentialcar renters another option that is usually cheaper than a mainstream car rental.Thus, sharing expands options and helpspeople save money. A study sponsoredby Airbnb found that 60 percent of adultsagree that “being able to borrow or rentsomeone’s property or belongings online isa great way to save money.”Source: Phillip Campbell onFlickrAnother economic trend that contributedto the growth of the sharing economy isthe prevalence of venture capital to fundthe startups that champion the concept.show users that those supplying the trans-According to a study of 200 collaborativeport and accommodation are who they sayconsumption startups by Jerimiah Owyangthey are.at Altimeter Group found that they haveenjoyed a collective 2 billion influx of fund-Social networking takes the anonymitying. The average funding per company wasout of the transaction. In some ways, the 29 million. This enabled these new com-sharing option is inherently safer than thepanies with novel business models reach atraditional one. A case in point is the mobilewide audience and grow very quickly.peer-to-peer ride sharing service Lyft,which allows both drivers and those whoTechnological factorsthey pick up to rate one another.Peer-to-peer transactions were once lim-“People who use Lyft appreciate the abil-ited to one’s friends, family and immediateity to provide immediate feedback. It alsoneighborhood. Mobile technology and so-takes the anonymity of it and holds every-cial media make it possible to match supplyone to a higher standard. It adds an extraand demand among a much wider network,layer of safety and trust because there isand with a reasonable level of trust.that accountability,” says Erin Simpson, aspokesperson for Lyft. “If you have a nega-In the earlier days of the web, users mis-tive experience you can let the customertrusted the people they met through itservice team know in minutes. With a taxi,and it took some years before they wereif you leave your phone behind, you knowcomfortable using the Internet to makewho you rode with and you can find thatmonetary transactions. Movies involvingperson.”computers from the mid-1990s paintednew technology as a sinister world full ofAs sharing becomes more prevalent weantisocial serial killers. Being able to trustshould watch how users’ biases affect ac-a potential host is a big hurdle to gettingcess to the services. The old economy hasinto a car with or sleeping in the home ofrules in place to protect access to hotelsa stranger. Almost all sharing sites involveand ground transportation, no matter whatsome sort of social networking feature tothe operators’ preferences or bigotries may9

What the Sharing Economy Means to the Future of TravelSKIFTbe. But the new economy has no systemof a mainstream money saver compared toin place to prevent racial or other forms offree couchsurfing.REPORT#72013bias that would keep an Airbnb host fromdiscriminating against certain users or aSocial networking also establishes trustUber driver from driving to certain neigh-with people who might be friends of friendsborhoods.(or acquaintances). Airbnb uses Facebookintegration so renters and property own-Lyft is an example of collaborative con-ers could see what their actual friends saysumption made possible by location-awareabout one another and whether they havemobile technology. The program, whichfriends in common. London-based startuponly works on a user’s smartphone, showsFoF Travel is exclusively based on helpingwhere ready, willing and able drivers can betravelers meet up with friends of friendsfound.while they adventure abroad. Right now, thesite requires users to add only their mostOnline payment systems also took awaytrusted friends rather than pull in the hun-opportunities for fraud. Newer sharingdreds of tenuous connections that manycompanies like Airbnb act as middlemenhave on Facebook, but they are consideringfor the two parties. Older peer-to-peerleveraging users’ preexisting connectionsmodels for vacation rentals and the likeon the social network.required the renter to wire money directlySocial factorsto the owner, which is perceived as riskierthan going through an intermediary witha decent online reputation. TrustworthyChanging norms and consumer taste areonline payments made sharing rooms morealso major drivers of the growth of theSource: Tim Lucas on Flickr10

What the Sharing Economy Means to the Future of TravelSKIFTsharing company that traditional travelThrough the shared pain of the hardcompanies also need to track.economy, coupled with a greater desire forenvironmentally sustainable consumption,In contrast to the findings of Hamari andand a desire to connect with other peopleUkkonen, a 2013 study by Ipsos Public— even strangers offline are importantAffairs commissioned by Airbnb foundpoints for incumbent brands to recognizethat the top motivation for a plurality ofwhen appealing to this market.U.S. adults (36 percent) was philosophicalbeliefs associated with sharing. However,“I think another reason why sharing isother studies demonstrate that the mostbecoming so popular is because therelikely motivator for those who have neverhas been this shift in people’s mindsets.used collaborative consumption was theInformation is so much more accessible.money-saving aspect.People are a lot smarter now and moreinformed than ever before. There seems to“Often people begin sharing as a way tobe a strong and palpable backlash againstmake money, but we’re seeing that philo-big corporations and excessive capitalismsophical benefits and social connectionsand consumerism. More and more peopleare the reasons people come back time andare searching for ways to find meaning andtime again,” said personal finance expertbalance out their lives,” says Krista Curran,Farnoosh Torabi, in the press release forCEO and founder of FoF Travel. “Peoplestudy. The bridge between online and of-seem to be realising and comfortably ac-fline communities are creating the viralitycepting that at the end of the day, peopleand stickiness that is propelling the ‘Shar-— your relationships and community — areing Economy’ forward.”what matter. And instead of hoarding andacting selfishly, why not share and helpeach other out?”Sharing and travel accommodationVacation rentals and peer-to-peer accom-potential renters and negotiate directlymodation are among the most prominentthrough the site. HomeAway, which wasexamples of the sharing economy in travel,founded in 2004, consolidated several com-but it does not yet represent a real threatpanies including VRBO that offer vacationto traditional hotels. Some hoteliers arerental classifieds. When buyer and sellerproactively evolving to fit into this trend.agree, the former sends the latter a directpayment.Differences between vacation rentals andpeer-to-peer hotelsJon Gray, Vice President of HomeAwayNorth America says that a major differenceRenting out another person’s home is noth-between the vacation rental market anding new. Prior to the Internet, classified adssites such as Airbnb is the type of ownersand listing services compiled rentals basedthat use it.on destination. Vacation Rentals By Owner(VRBO) has facilitated such transactions“HomeAway allows people to do somethingonline since 1995. For a yearly subscriptionwith a second asset. Some people buyto the service, homeowners could meethomes before retirement and rent them11REPORT#72013

What the Sharing Economy Means to the Future of TravelSKIFTuntil they reach retirement age,” he says.able space, the company gets a portion of“The overwhelming majority is secondall transactions. Renters and hosts don’thomes that are rented most of the year,exchange money directly, rather the renterwhile the owner is there a few weeks a year.pays Airbnb. The payment is debited 24Most inventory is located in vacation mar-hours after check-in to ensure that thekets near beaches and mountains.”traveler isn’t charged for a room that isn’tREPORT#72013as advertised. In lieu of a subscription fee,Airbnb, by contrast, is more popularAirbnb takes 6-12 percent of the roomwith travelers and hosts in big cities. Thecharge, depending on the type of space andfounding story is that when a major de-a 3 percent processing fee. In response tosign convention sold out San Francisco’sthe success of this arrangement, Home-hotel rooms in 2007, two young designersAway has begun offering a pay-per-bookingdecided to rent out three air beds on theirmod

What the Sharing Economy Means to the Future of Travel SKIFT REPORT #7 2013 4. Table of contents About Skift Skift is a travel intel- . airfare increased

Related Documents:

May 02, 2018 · D. Program Evaluation ͟The organization has provided a description of the framework for how each program will be evaluated. The framework should include all the elements below: ͟The evaluation methods are cost-effective for the organization ͟Quantitative and qualitative data is being collected (at Basics tier, data collection must have begun)

Silat is a combative art of self-defense and survival rooted from Matay archipelago. It was traced at thé early of Langkasuka Kingdom (2nd century CE) till thé reign of Melaka (Malaysia) Sultanate era (13th century). Silat has now evolved to become part of social culture and tradition with thé appearance of a fine physical and spiritual .

On an exceptional basis, Member States may request UNESCO to provide thé candidates with access to thé platform so they can complète thé form by themselves. Thèse requests must be addressed to esd rize unesco. or by 15 A ril 2021 UNESCO will provide thé nomineewith accessto thé platform via their émail address.

̶The leading indicator of employee engagement is based on the quality of the relationship between employee and supervisor Empower your managers! ̶Help them understand the impact on the organization ̶Share important changes, plan options, tasks, and deadlines ̶Provide key messages and talking points ̶Prepare them to answer employee questions

Dr. Sunita Bharatwal** Dr. Pawan Garga*** Abstract Customer satisfaction is derived from thè functionalities and values, a product or Service can provide. The current study aims to segregate thè dimensions of ordine Service quality and gather insights on its impact on web shopping. The trends of purchases have

Chính Văn.- Còn đức Thế tôn thì tuệ giác cực kỳ trong sạch 8: hiện hành bất nhị 9, đạt đến vô tướng 10, đứng vào chỗ đứng của các đức Thế tôn 11, thể hiện tính bình đẳng của các Ngài, đến chỗ không còn chướng ngại 12, giáo pháp không thể khuynh đảo, tâm thức không bị cản trở, cái được

Le genou de Lucy. Odile Jacob. 1999. Coppens Y. Pré-textes. L’homme préhistorique en morceaux. Eds Odile Jacob. 2011. Costentin J., Delaveau P. Café, thé, chocolat, les bons effets sur le cerveau et pour le corps. Editions Odile Jacob. 2010. Crawford M., Marsh D. The driving force : food in human evolution and the future.

Le genou de Lucy. Odile Jacob. 1999. Coppens Y. Pré-textes. L’homme préhistorique en morceaux. Eds Odile Jacob. 2011. Costentin J., Delaveau P. Café, thé, chocolat, les bons effets sur le cerveau et pour le corps. Editions Odile Jacob. 2010. 3 Crawford M., Marsh D. The driving force : food in human evolution and the future.