Sharing economies are fast building their way into every industry. They disrupts the most business across the world. One of the two companies which began as the sharing economy pioneers are Uber and Airbnb. In fact such ventures have transformed the way we opt accommodation while we travel. Several companies have started to develop themselves in a similar way. This shows how the on demand or sharing or peer-to-peer economy has been influential enough to have so many companies develop in the same manner. On other side, the hotel industry is the traditional business that has gone radical changes due to this. Hotels and restaurants are most sorts after in times of travel and for food.
Let’s look at some of the effects. So how are these companies changing the way we travel?
One of the primitive yet not widely appreciated platforms is couchsurfing. This platform enables the user to find a couch for stay among the several hosts available but widely called as a dating site, though the company states any dating activity as harassment.
One of the biggest troubles for a traveler would be the amount he or she spends for accommodation. That even stops some of them from travelling. Airbnb comes with a solution for the problem. You can choose from condos one room for a stay according to your budget.
The company initially started as air bed and breakfast has named itself as Airbnb. Now there are thousands of properties listed on platform to choose from 191 countries across the world.
Wimdu is another platform similar to Airbnb which has its origin Berlin, Germany.
3. Travel agents, special tours
Vayable is a platform where one can seek unique travel experiences and travel agents for the same. The trips range from a private jet trip over Berlin or a walk through New York’s street art.
However now the platform offers more custom tours through agents located across 500 cities in the world. The company will also soon tie-up with hotels to provide accommodation.
4. Business travel and accommodation
They may be executives, CEOs or VPs Airbnb has room for everyone. The company launched a recent dashboard for business travel. It has listed properties specifically for business people with several standards set for them.
At present 10 percent of the bookings come from business travel. The company has also partnered with concur, business travel and expense management service for further increasing the range of its customer base.
5. Meetings and conferences
Earlier meeting or business conventions happen in traditional hotel spaces or in those boring indoors, spacebase is trying to change this. It provides unique venues, privately owned for business meetings. They have partnered with around 1,700 property owners. The company was launched in February 2015 in Berlin to make those boring meetings an interesting one.
The unique properties range from yoga studios to floating boat houses. Most of the spaces listed on the platform can host 10 to 100 people and all the space owners are educated regarding how the space must be maintained for professionals.
Many corporate workers have appreciated this initiative to take up board meeting in unique places as it helps them open up their minds.
All the property owners should provide audio-video details of the venue.
Hotels spaces are used to host events and conferences. Summitsync tend to be a single app for organizing all professional networking and their events.
The founder of the app stated that there are 280,000 conferences happening in the US and they have the only one app dedicated of their purpose. The companies are positive regarding the customer base they will develop in the future.
There are platforms which get you food from your favorite restaurant across the cities when you wish. There are app based restaurants which serve food when you want from the menu they have crafted.
Both of the platforms have transformed the way we consume food. Today there are a wide range of options we can avail from our cities best menu.
This is a positive outcome to the restaurants owners because now increasing number of people show interest to buy food at the comfort of their house. These platforms also help budding chefs to show their talents without the need to invest in a restaurant setting.
This has led to the beginning of several logistics companies which are ready to deliver the food to customers.
Today budding chefs have also started sharing kitchen for their food dreams to come true. Commercial kitchens are not easy to set-up and sharing kitchens at times when they are not used by the owners will help both owner in creating value over unused asset and the user a cheaper facility.
Advantages of sharing economy for hotel goers and travelers
They are always on a lower side when compared to the traditional industry. You get what you pay for since you have the choice to choose from the platform. The rates are not standard across the platform and vary depending on the service and comfort factors.
Almost every platform has a system of rating and reviewing the products or service. Therefore the provider has a need o maintain the standards. It also gives the customer a better insight before making a choice.
What effect does all this have on the hotel industry?
Though Airbnb has been growing steadily there is very less effect on the traditional hotel industries, the reason being due to so much of demand among people for well services rooms and hotels.
So in fact Airbnb has not grabbed the market of any hotel it rather has generated a market of its own. It no longer makes travel look costlier for your normal backpacker. It may take several years to see the actual effect of these companies.
The initial reaction would be lowering of prices to attract more customers. The industry will also most probably come up with innovative tricks to attract customers.
1. Local economy
Sharing or on demand business help in developing local economy and provide jobs. It provides opportunities for both professionals and unskilled labor. A source of income for all the city dwellers involves since this type of business is more common in the urban background.
2. Legal rules
Sharing economy however suffers from various government apprehensions. There are debates concerning the labor norms or minimum guaranteed service to the customers.
Soon the law makers might come up with a fix to the solution for this problem and many countries have already framed the basic laws. However there are certain governments state the entire business as illegal owing to their model have put complete ban over them( Uber’s ban in European nation).
So any entrepreneur at present has to be sure about the laws regarding the business operation in their country. In US every state has its own laws for operation of these companies making it completely difficult for beginners.
So for a common traveler or hotel goes the expenditure can be reduces and event corporate workers can be excited about their board meetings.
However the industry is still in its nascent stage and one can expect more number of companies rising in the same way. I am quite sure above mentioned hotel industry analysis will certainly help to understand the scenario.
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