Pros And Cons Of The Sharing Economy Theory By Clayton Christensen

With recent economic crisis (2008), people globally tend to spend less of their money on travel. Regarding the hospitality industry, they would rather look for cheaper accommodation or room. With the crisis also affecting companies, business travelers are keener to find cheaper rooms or apartments to limit their changes.by offering cheap rents, AirBnB is offering an alternative solution to people and businesses, and is a good response to the crisis.

Airbnb, Inc. operates an online community marketplace for people to list, discover, and book accommodations worldwide via online

The world’s largest lodging provider, Airbnb, runs its business in around 192 countries and 30,000 cities across the globe. Now, the company need not have any worries about the high employee turnover rate or the increase or decrease in real estate prices. Since its growth is very large from its beginning in 2008.

The criticism which is expressed, however, is directed primarily against tax losses, safety and protection issues, as well as regulatory inadequacies. For example, for many cities and regions, tax revenue from hotelery are an important source of tax income, but hosts from platforms such as Airbnb are not being asked by the state to pay a similarly equally amount as hotels. Safety standards are also subject to different standards, to stay with the example of the accommodation sector, private accommodations are not regularly exposed to examinations, whether they represent fire traps to its visitors or if they meet the same security policies as hotels. (Baker, Gaurdian, 2014) In the following, some of these criticisms are going to be discussed in more

According to the report from Mahmoud, 2016, the Hotel Association commissioned a report by The Impact of AirBnb on Hotels and Hospitality Industry. The report is focused on Airbnb development in New York City, the result of the report is not general in different countries, however it provided a strong relation and indication on what is happening with Airbnb and the impact on traditional hotel

Intentions in partaking in the new sharing economy vary, which is not shocking given the assorted qualities of platforms and activities. A few members are drawn by the popularity or uniqueness of the platforms. It is, in any case, imperative to perceive that the uniqueness about which numerous participants (and uniqueness) talk can be a declaration of classism and prejudice. The obvious reasons are mainly to do with cost saving during a period of economic struggle, and sustaining the environment. On the other hand, of larger interest are the obvious reasons for sharing, which can be found in references to the timelessness of sharing, under the circumstance of that sharing is an activity that children do. The timelessness of sharing is implied when collaborative consumption is described as being “based on natural behavioural instincts around sharing and exchanging” (Botsman & Rogers, 2010, p. 213). Therefore, sharing is not only a relic of past societies; such practices persist to be more common in the working class, deprived, and marginal groups. The talk of novelty develops a false universalism that can distance to individuals who have kept up non-computerised sharing practices in their day by day lives.

The term "sharing economy" began to appear in the early 2000s, as new business structures emerged due to the Great Recession [ok, but the Great Recession took place in the late 2000s]. Sharing economy is often used to describe economic and social activity involving online transactions, including using information technology to provide individuals with information that enables the optimization of resources through the mutuallization of excess capacity in goods and

In the hotel vs. shared economy battle, the straw that broke the camel’s back is the fact that Airbnb has begun attracting business travelers, which are considered “the bread-and-butter clientele of hotels” (Glusac). As a result, hotels are anticipating an important economic impact on their revenue. In the United States

Rather, Airbnb can grow the overall pie and allow a to obtain a larger slice. As recognized by SF Travel, some cities may be prohibitively expensive for certain visitors, and hence price sensitive visitors would avoid travelling there. By providing affordable accommodations, Airbnb ensures that such tourists and attendees are not priced out. That lack of actual competition between Airbnb hosts and the hotel industry may explain why one study, focusing on the Texas market, projected that a one percent increase in Airbnb listings results in only a 0.05 percent decrease in hotel

Feeling threatened by online businesses like Homeaway, Airbnb, Uber, and Lyft that allow people rent underused assets to peers, the taxi and hotel industries have called on local regulators to impose more health and safety rules on micro-entrepreneurs who participate in the “sharing economy” (http://blogs.wsj.com/accelerators/2014/04/29/sunil-paul-who-should-decide-the-future-of-sharing/). Policymakers shouldn’t respond. The hotel and taxi industries are using “consumer protection” as a guise to keep more efficient competitors from cutting their profits.

The first step to a SWOT analysis of hotel industry in India will be identifying its strengths. There are more than 1000 classified hotels with a room availability of around 97,000 rooms which can easily cope with the demand of tourists. Furthermore, there are also a number of international names in the market which meet the needs of international tourists on their visit to India. In addition, there are many tourist attractions and the cost of labor is low in comparison with the rest of the world, thus, providing better margins for hotel owners and higher growth potential in the industry (Mohammad Arabzad an, 2012).

Since its inception a few years back, there has been much debate about the cost-benefits analysis of the sharing economy across the globe. Much of the debate was focused on the fact that allowing people to share and use existing resources would be merciless for business everywhere. Not only businesses would be affected, but it will also undermine the much needed development in local communities and to a larger extent it will have a negative effect on people’s income and government taxes which, if left unopposed can be catastrophic for the overall economy. Most recently, however, there have been a shift in paradigm suggesting a mirrored effect is happening throughout the world. Researchers, economists, and social scientist are surprised by

Airbnb has transformed many people travel, building a global marketplace around the short-term apartment and room sharing. It becomes a real threat to the hotel industry as it still continues to expand the popularity. Airbnb offers a variety of financial services and insurance like product to hosts and guests to maintain the control of all listing and charges nine to fifteen percent service fee on all bookings. This helps the company to likely pass one hundred million this year as it up from about eighty million last year.

Airbnb is one of the hottest startups in history and the new star in the hospitality industry. It provides an online platform that enables individuals (hosts) to rent rooms, flats, even whole houses directly to travellers. Brian Chesky founded this company in 2008, and has

The hotel industry included a vast array of lodging options including from luxury resorts, casinos, hotels, motel, bed and breakfasts and campgrounds. Business in the hotel industry focus on providing consumers comfort, efficiency and customer services for those seeking accommodations while traveling or for other purposes. The hotel industry is one of 25 subsectors of the travel industry sector of the hospitality industry. 1) Food and Cuisine, 2) Accommodations and 3) Travel and Tourism account for of 50% of the output of the Hospitality Industry. Hotels and lodging falls within the Accommodation Subsector and contributes to 17% of the output of the travel industry sector alone. (United States Department of Commerce, 2014)