sharing economy/ collaborative consumption: it's affect on the travel industry
TRANSCRIPT
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Sharing economy/Collaborative consumption:
Its affect on the travel industry
David L Jones, PhD
Professor and Programme Director
Hospitality Business
Singapore Institute of Technology
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Brian Chesky - CEO of AirBnB & Rachel Botsman – Author of What’s Mine is Yours
University of San FranciscoAnnual Symposium 2013
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Collaborative Consumption
• Definition– Collaborative Consumption describes the rapid
explosion in swapping, sharing, bartering, trading and renting being reinvented through the latest technologies and peer-to-peer marketplaces in ways and on a scale never possible before (www.collabortiveconsumption.com)
– Originated in Mainland China with the tuangou(Zheng, 2011)
– Also called “sharing economy” or “meshing”
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San Francisco and Sharing Economy
• Guest rooms inventory
• Traditional hotel rooms = 33,000
• AirBnB listings = 5-10,000
• Conflicting interests
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Issues in SF AirBnB Controversy
Lodging Industry
• Hotel Tax
• Safety
• Zoning laws
• Rental market
Sharing Economy People & sharing
Excess consumption
Entrepreneurship
Trust
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“We will never compete with Marriott or Hilton for the two-day road warriors,” Conley says. “We don’t want that business traveler. For the road warriors that go two days here, two days there, and want a rewards program, that’s just not us.”
15 Oct 2014 - Quartz
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“It makes a lot more sense to have a place with a kitchen so we can cook; it feels more like home,”
From a Tech Industry Corporate TravelerBased on Stay in SF
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Corporate Travel Impact
• Concur Technologies incorporated AirBnB this year
• Major convention bureaus for conferences
• Companies using them
– Salesforce
– Evernote
– Lyft
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Concur’s Tracking Results
• AirBnB
– Tripled, account for $1 million in expenses in first quarter of 2015
– One of fastest growing lodging segments
• Uber
– Usage it tracks grew ninefold from 2013 to 2014
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Rethinking Distribution Channel
• Rethinking value creation
• Rethinking value consumption
• Rethinking quality control
• Rethinking scale
Choudray – Forbes 7/7/14