The Impact Of Uber And Airbnb On The Hospitality Industry

Kirst-Ashman explains boundaries as, “borders or margins that separate one entity from another” (2011, pp. 16). Nonetheless, it would appear as though these different social systems have boundaries that could be seen as blending into one another. Botsman explains that blurry lines appear between what is now mine, what is yours, and what is ours, and in order to successfully work together a certain degree of trust must exist. This is in part because while credit history used to be important, now our reputation of what is posted or done on the web leaves a trail which demonstrates to others whether or not an individual can be trusted (Botsman, 2010). However, these blurry lines only work due to a shift that has occurred. This shift is in regards to individuals viewing, as Kevin Kelly explains that having access to an item or service is better than the actual ownership of that item or service being produced (Botsman, 2010). With this paradigm shift that current generations are moving towards, it enables individuals to work together on a micro and macro level, which enables for groups of individuals to join online

The sharing economy has its perks however also its inconveniences. Mary Dejevsky is the writer of “Uber and the “sharing economy” are leaps into the past, not the future”, and in the text she speaks on the downside of the sharing economy. “There are questions, too, about quality of life and fairness. What recourse do you have if you are a tenant or home-owner disturbed by anti-social short-stayers? If you are a neighbor woken by driveway customers slamming their doors at 6am? If pollution is increased by the many more cars plying for hire? If wages are further depressed by casualization?”, Dejevsky lists various of problems that people face or could face now that sharing economy is becoming a global thing. All the things she mentions are pretty

Additionally, AskforTask practices the idea of collaborative consumption, also identified as a sharing economy. The notion emphasises

In text 2 “Learning the wonders of the sharing economy in trip to Denver” (2014) by Catharine Hamm, Hamm talks about, how the sharing economy has made her whole experience to Denver, and how impressed she is by the fact that the business is build on trust, as she says “And I didn’t get ripped off - or worse - by anyone. Which may be the most surprising

Airbnb, an online peer-to-peer platform founded in August 2008 and headquartered in San Francisco, enables hosts to list and rent out their own residential properties to visitors. This online platform not only offers visitors with cheaper accommodation while connecting them with local communities, but also benefits hosts financially by renting out part or all of their properties. However, while the consequence of sharing economy is positive to both visitors and hosts, there is no doubt that traditional industry such as hotel business has been affected in a negative way. As a result, Airbnb is not only under attack from the hotel industry and individuals who want to rent apartments in longer terms, but also is opposed by city authorities in terms of local housing laws, regulations and tax issues. According to recent news released on Financial Times, the New York Governor Andrew Cuomo signed a law that would impose fines on hosts who advertise short-term rentals on Airbnb, which the governor considered as a violation of current state law.

Uber is a new way of being able to acquire money more easily; In addition, it represents a great advance for society as it helps to increase security in cities, optimizes the mobilization of means of transport and allows improving the economy, since it provides people with an easy way to work. This application allows you to unite different individuals around the world that require some means to transport themselves efficiently and

Uber is a ridesharing app for faster, cheaper, ease to use, and reliable ride in minutes. The app has connected rider and passenger at the within reach of a need button. As Uber continues to grow, it faces various controversies regarding minimum wage, the taxi industry, and it has even been banned and restricted in many parts of the world. Among the PESTEL framework, the factor that is most critical for this industry are the political factors. Uber has ignited political debates globally. For instance, it has faced lawsuits regarding the treatment of drivers as employees and not contractors. Additionally, the Netherlands has ruled against Uber because drivers do not have taxi licenses and proper permits, Portland has ceased order, based on advertising

Uber is a technology platform company founded in 2009, and it provides a network of transportation service on demand. It connects its driver-partners with passengers who need and request a ride via its smartphone app. Uber is providing its service in more than 80 countries and 540 cities worldwide. Transportation services, such as taxi and limousine, have been greatly affected since Uber entered the market. As Uber’s role is being a market creator between the drivers and passengers, the company receives revenue for every trip a driver provides with the driver keeping the rest. This part incentivizes drivers to become Uber’s driver-partners since they can earn extra income. Customers switch from taxi services to Uber because

Over the past decade, there has been significant changes to the technology landscape, economic, and social conditions in the market which fuels the rapid growth of the share economy. The share economy is a concept which has been around for centuries dating as far back as 1914. At the end 1914, a unique blend of events led to the rise of carpooling. A recession struck the US while at the same time there was a large supply of cheap automobiles on the city streets. In the city of San Francisco, car owners began offering seats in their cars for the same price as a street car fair, known as a jitney. Both the recession and the availability of an underutilized automobile stimulated the necessity of alternative ways for consumers and producers to

Then acquiring new hosts in some countries, Airbnb learned that they can’t rely on online tactics alone. Sometimes, people need to talk, face-to-face, with a human being. And those needs can vary from culture to culture.In so doing to set a model for the lower LSM 1 – 4 area.

Sometimes referred to as collaborative consumption, other times the sharing economy, this movement is growing momentum at a stunning rate. Individuals are sharing anything from car rides to accommodation, to their front lawns to grow vegetables to even their pets. Whilst their industries are all different they all have significant factors that are the same. They are all disrupting conventional business models, impacting those traditional bottom lines and are doing so by providing platforms that promote peer to peer engagement, interaction and collaboration. This movement towards a collaborative economy affects so many of today’s industries and services and not just as a macro level, but more deeply effecting change within each industries ecosystem.

Uber, an application that connects ride-hailing users with drivers, and Airbnb, an online lodging platform that derives its name from bed and breakfasts, have practically become synonymous with collaborative consumption. Companies compete to become the next “Uber of” an industry. There is an “Uber of flowers” that delivers bouquets, an “Uber of lawn care” that encourages lawnmower sharing, and even an “Uber of medical marijuana” (Entis, 2014). The analogy is precarious considering the variations between these companies, but the basic premise of the sharing

Uber is the new taxi. It has innovation written all over it and taxis are slowly becoming a service of the past with Uber and Lyft now taking over the markets. Global Positioning System, also known as GPS, is the way Uber has been networking with its customers. Geographic Information System allows Uber to operate more efficiently and even saves them 10-30% (http://www.esri.com/what-is-gis). Location Based Services allow a device to be known at its current location. Uber has taken advantage of these three technologies and made them applicable to their job everyday which has provided them with very much success. This business case will discuss ultimately the successes and the roadblocks Uber has encountered since they opened, as well as recommendations to situations they have encountered over the years. Uber is cheaper, more efficient, and a better service than any taxi on the market.

For instance, Airbnb contributed to make a profit 2.5billion euros in French economy in 1 year and help to stimulate the creation of 13,300 jobs as well (Epoch times, 2014). Moreover, sharing economies provides lots of selection to customers with reasonable price. On the other hand, if people think about impact to hotel industry, integrating information mentioned in above, sharing economy especially Airbnb bring negative influence and threatening to hospitality industry. Based on research, which is focusing in USA, Airbnb showed amazing growth that $12.3billion revenue estimated by US investment bank Cowen & Company in this year which much higher compare with in 2015 (). For further statistic of growth of Airbnb please referring to appendix_. Airbnb showed 425,000 guests per night is the average rate of Airbnb and it is nearly 22% more than Hilton (PWC, 2015) and it star to over $10 billions of it valuation which exceeding global hotel chains such as Hyatt’s valuation (Hospitality Net, 2016). As Airbnb showed magnificent growth in hospitality, hotels lose approximately $450 million in direct revenues per year to Airbnb by estimated from HVS (Hospitality Net, 2016) (copy). People noticed that there are only few impact on luxury hotels and business in New York, on the other hand, Airbnb compels to decrease of 5% of budget hotel of revenue (The Economist, 2014). Referring to Vijay

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.