Several sharing platforms have emerged in recent years for travel and accommodation, allowing consumers more flexibility and choice in the market. Although it is still early days, PwC’s Hospitality and Gaming Division says the sharing economy is growing swiftly – particularly in the hospitality and tourism industry.
Traditional hotels should be considering strategies for the future, as these sharing platforms have the potential to change the way of doing business in the hospitality sector, says PwC.
The sharing economy allows people to use information technology that enables distribution, sharing and reuse of excess capacity in goods and services. An example of such platforms is Airbnb, which allows people to sublet their rooms or entire homes when they are not around.
“Worldwide this is a trend that is emerging. The sharing model has been made possible by digital platforms and changing social norms,” says Veneta Eftychis, PwC senior Manager, Hospitality & Gaming Division.
PwC’s research shows that a sharing economy is resulting from the collision of four megatrends: breakthroughs in technology and connectivity, rising urbanisation, a growing environmental conscience and shifting social preferences. In the hospitality and leisure sector, a new breed of traveller is emerging from this coming together – ‘digital natives’, a tech‑savvy generation who see through hotel marketing literature with a quick scan and get the best deal available through price-comparison websites.
But, according to PwC research in the UK, hoteliers say that ‘sharing economy’ business models are not a significant threat to traditional business models (yet) and that online travel agents (OTAs) are the biggest threat. Luxury operators, especially, did not believe the sharing economy, using business models like that of Airbnb, could consistently compete with a five-star business model.
Nonetheless, the hotel industry should take the necessary steps in identifying the potential for disruption in their sector today, says PwC. “Hoteliers should also look into their current strategies, business models and look at ways in which they can differentiate their products and services as a means to justify their current hotel pricing structures,” suggests Eftychis.
