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Impact of Sharing Economy on Hospitality Experiences

The Impact of Sharing Economy on Hospitality Experiences

One of the most effective developments is in economic aspect shaking up the hospitality industry in the concept of the growth of the sharing economy.  In recent years, this trend has evolved into highly popular, acceptable to the all and profitable business models.  The business people in this sector are to capture the opportunities and challenges that this created to the sharing based economy is hospitality experience. As a result, the conventional business model in hospitality experience is being challenged and the number of tourist to take traditional hospitality services is decreasing in just several years period.  For the business people who do hotel as well as accommodation business they are taking the benefit of the sharing based economy on the aspect of impact of sharing economy on hospitality experiences in this sector with the massive technological advancements and continuously improve guest experience by using technology as this opportunity is well-timed and appreciated.

In the Internet of Things (IoT) or the digital marketing era, many people are still unaware or not supported of the sharing economy under the Impact of Sharing Economy on Hospitality Experiences. But there are most of them who use mobile devices having internet access and actively participate in online media, social media, internet media, apps media to collaborate with the sharing economy. Hoteliers are taking notice and adapting their offering to this new way of finding and reserving alternative accommodations. And this is the main point where many people are engaging with sharing economy in accommodation. Business people who are doing accommodation or hotel business are using sharing economy and of course they carry the modern business approach to take adopt the new business model. Tourists who are the prime user of the sharing economy in accommodation are the active participant of this service in they can directly interact with the accommodation service provider by internet by accessing to the website of that hotel business. They are having a look on it and taking decision to book a room for his tour purpose from those companies Airbnb, Flipkey, Alterkeys, 9Flats etc. There are different purposes to use the sharing economy in accommodation like it could be the official tour, it could be the business, it could be holiday tour to different countries where finalization the accommodation place to stay there is the prime concern of the tourist. The way they use the sharing  economy in accommodation is totally internet based where bunch of information, pictures, accommodation rates, services, food menus, travel package each and everything those are related to a tour are mentioned in the service provider website or different blogs they are sharing the information to make it open for all the users. The expectation of the tourist from the accommodation service provider is to having a good response from them. They expect the services will be provided accordingly that the service provider mentioned in internet services. They expect the full support from them from food eating to travelling, even according check in to the hotel and check out from the hotel. The matter of security is the big issue.  They expect they will feel secured and a happy and memorable tour there.  Now in seconds anyone with a mobile device can access specific information about businesses, hotels, restaurants and the nearby amenities. Airbnb, Alterkeys, 9Flats, Flipkey are taking advantage and helping guests decide the most attractive location, not just the most attractive room.

The profile of people staying in sharing accommodation is that they are tech lovers. Most them are business people, corporate people, bankers, teachers as they would like to search in internet and try to get decision regarding the accommodation with attractive location as they can enjoy the beauty of the location form the balcony of the room.

The international trend in this hospitality sharing economy and accommodation is growing day by day considering the Impact of Sharing Economy on Hospitality Experiences. And the success rate of this concept of the business model is so high. Moreover the acceptances of the service from the tourist are positive. They love to take the service of this new business model of hospitality industry in which the traditional hotel business are facing difficulties to sustain in this industry.  Sometimes, those traditional models of hospitality business in accommodation and hotel are renting the room at lower rate. They have no such big turnover in a year like that before.  The international market for hospitality sharing economy is growing at an exponential rate considering the Impact of Sharing Economy on Hospitality Experiences. The hospitality sharing economy in tourism is growing at exponential rates as it has the highly acceptance from the tourist or the people from different countries or different corner. They are using this platform because they think this is free of harassment and time consuming. Within the touch with mobile device the people can the advantage of the sharing economy in accommodation.  In international market the marking becoming so popular and broad to many countries. Countries like developing countries, developed countries are highly moving on to this kind of sharing economy in accommodation because in international market it has been dynamited that  it affects all tourism activities and sectors including accommodation, transportation, tour operations, restaurants and tour guides and they are the business like Airbnb, Flipkey, Alterkeys, 9Flats and it has huge Impact of Sharing Economy on Hospitality Experiences. The way they are transforming the new business model in the international market and the way the market is expanding and growing , it is becoming challenging for the traditional hotel or accommodation business. The sharing economy is challenging the traditional hotel or accommodation business of employment, work and entrepreneurship if considering the Impact of Sharing Economy on Hospitality Experiences. The sharing economy is challenging the socio-technical, economic and cultural regimes by disrupting and deconstructing existing structures, while simultaneously constructing new ways to organize work and lives.

The sharing accommodation provides an authentic hospitality experience or a commercialized one, it could be a debate issue under the phrase of the Impact of Sharing Economy on Hospitality Experiences. First of all, the authenticity or the authentic aspect of the sharing economy in accommodation is totally difference from the traditional business model of hotel. And of course they have the authentic hospitality experiences in the way of they are servicing to the tourist. The beginning of the process is too good. People from any corner can know about them about their services. Having been looked on the services and the location view, then the tourist response to take the advantage of the sharing economy in accommodation. From any corner of the country tourist can choice his or her accommodation places. Now come to the other facilities they have. They have fully equipped room, with all the modern technologies that a customer is basically preferred to have. There are 24 hours internet connections in the room and outside the room up to certain frequency coverage. Thus, the tourist could be impressed on it. The proof of another authentic service by them they have the option to customized food choices. S people are coming from different places, different cultures, their food choices, food habit must be different. As a result, they keep the option to have the customized food menu for the customer. There are too many entertaining packages for the tourist they have. They offer riding offer, playing offer, travelling offer those are totally different from the services of the traditional business model.

Along with these authentic services, the expenditure is the big issue. Too much investment is required for this type of authentic services. That’s why the matter of commercialized aspect come forward as the debate issue. It is true they are providing too many authentic services to their customer and it is also true customer are getting happy after getting such type of customized services and where there is no harassment to take the eservices, time consuming aspect. Taking all this consideration, the commercialized mater is a big deal. But the commercialized issue becomes a factor due to the seasonal factor. For tour lover, there are some specific season when they would like to tour the world and then the sharing economy in accommodation take the advantage of it. When there are peak season in the hospitality market, they charges high rates but they offer those kinds of customized services. And the time off peak season, they offer different discount to the people of all over the world.

The way they are transforming the new business model in the international market and the way the market is expanding and growing, it is becoming challenging for the traditional hotel or accommodation business for the three star hotels those traditional form of hotel business. The sharing economy is challenging the traditional hotel or accommodation business of employment, work and entrepreneurship. They are facing a threat also to sustain in the market. The sharing economy is challenging the socio-technical; economic and cultural regimes by disrupting and deconstructing existing structures, while simultaneously constructing new ways to organize work and lives.

The traditional hotel business is highly affected due to the growth of the sharing economy in the accommodation.  Those business are losing their customer, facing losses, turnover is decreasing. Sometimes, those traditional models of hospitality business in accommodation and hotel are renting the room at lower rate. They have no such big turnover in a year like that before.  The international market for sharing economy is growing at an exponential rate. The sharing economy in tourism is growing at exponential rates as it has the highly acceptance from the tourist or the people from different countries or different corner. They are using this platform because they think this is free of harassment and time consuming. Within the touch with mobile device the people can the advantage of the sharing economy in accommodation.  In international market the marking becoming so popular and broad to many countries.

Three star hotels those are not dealing with the modern trend are difficulties in their business because, they are not highlighting on the proper business policies and strategies about their hotel. They are clear and specific about what types of services they will offer to the customer. There are too many information between customer like tourist and the service provider.

Three Star Hotel located at Adelaide CDB, it has begun the time for them to think of their business sustain. They have to respond positively to go gar with the hotel business. Because, the new trend of business should be accepted and it does not mean that three star hotel will just look on it or even follow it rather they also van build a new business policy that may compete sharing economy business in accommodation. Pricing is of course a vital factor for tourist. In that case, they can reform their pricing strategy to charge for the service. They can reform the service policy that is related modern facilities. Its true three star hotel cannot be structured of the 7 star hotel but the area they can change that the service quality with modern facilities and the area of customized service which the tourist mostly prefer from them.  They should take some strategies to sustain in the market. That is they have to restructure the format of the business model where they have the regular interaction with the people of any corner of the world.  They should have to develop a platform to give the location view to the mind of the tourist. The tourist who come from another country he or she may prefer a three star hotel if it has proper structure of services. The main problem that is found there are too many communication gap and mostly information gap between the three star hotel service providers and the tourist. They cannot access to the information of the three star hotels that what type of service they may avail if he or she go to Australia Adelaide, So, they found the information five star and seven  star hotel information in internet they chose one from those. But the scenario could be changed it there bunch of information available for their customer about their services.

Impact of Sharing Economy on Hospitality Experiences

Fig: Market Share Sharing Economy in Accommodation

The above figure shows the total market of the sharing economy in accommodation because it is seen that in and out almost maximum portion is captured by the sharing economy in which the traditional hotel business are in collaborative business consumption and it is showing they are figuring in a certain place and around of them there are too many sharing economy business. So, it is very necessary to respond the three star hotel to be more updated in their way of services as well as being more customized for the customer service. If they cannot respond to these changes of the new market trend, they will be in threat with their business existence. They are being affected financially, socially, economically and legging behind from the international market. They cannot run with the trend of the new technology trend. They should be transformed to the sharing concept to sustain and make it more lucrative. Along with they have to come forward with too many changes in the pricing strategies, service strategies, distribution strategies, staff management strategies, customer service management strategies and above these there should have the priority of the customized services as they can keep satisfy their customer.

References

AndreaTracogna, Y.H.A., 2018. The sharing economy and the future of the hotel industry: Transaction cost theory and platform economics. AndreaTracogna, 71, pp.91-101.

Clampet, J., 2017. Hotels and the sharing economy don’t compete as much as they complement one another. Understanding what makes the innovators work, though, can improve the operations of hotel chains and properties.. International Jounal of Economy, pp.3-9.

Colin Strong, G., 2017. Airbnb and Hotels: What to Do About the Sharing Economy? [Online] Available at: https://www.wired.com/insights/2014/11/hotels-sharing-economy/ [Accessed 18 March 2018].

Davide Proserpio, G.Z.&.J.W.B., 2015. The Impact of the Sharing Economy on the Hotel Industry. international Conference, 12, pp.29-55.

Global, A., 2017. The Sharing Economy – How AIRBNB is Affecting the Hotel Industry. International Journal of Economy, pp.21-29.

Grynol, S., 2015. How the sharing economy is bettering the travel and hospitality customer experience. International Coference, 21, pp.88-108.

Gusso, M., 2016. Tourism and sharing economy, The Accomodation in Era of peer to peer vacation results. Jounal of International Tourism, 03, pp.1-113.

Luisa Collina, L.G.G.G.M.B.M.L.M., 2017. Sharing Economy for Tourism and Hospitality: new ways of living and new trends in interior design. An International Journal for All Aspects of Design, pp.1-17.

Schiel, F., 2015. The Phenomenon of the Sharing economy in Germany. Academic Jounal of University of Twente, 21, pp.1-104.

Skift, T.a., 2013. What the Sharing Economymeans of the Future Travel. Jounal of Trivett and Skift, 05, pp.2-22.

Written by

Md. Shadequr Rahaman

Email: [email protected]

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