Oliver Nabavian ENGW 3304 Prof. Richard The Internet Shared Economy How Airbnb and the Hotel Industry Can Coexist
Dec 17, 2015
Oliver NabavianENGW 3304Prof. Richard
The Internet Shared EconomyHow Airbnb and the Hotel Industry Can Coexist
The History of Shared Economies
• Peer to Peer Lending/Trading• Shared Economies in the Internet Age• Collaborative Consumption (CC’s)• Example: Groupon
• Hamari’s 4 Factors to successful CC’s
Airbnb Enters the Market
• Short Term Rentals in over 190 Countries • Over 25 Million Rentals so far• Making Apartment Sharing Safe• Rating System• A new way to travel
Airbnb vs. Hotels: A Texas Study
• Boston University Case study on Texas• Hotel Revenue dropped .35% for 10% growth in Airbnb • Uneven hit to hotels• Findings show small affect to large national chains
The Hotel Industry Reacts
• Price Drops in New York City January 2015• Revenue available per room (revpar) dropped 18.6% YtY
• Primarily due to the rise of Airbnb and short-term rentals• Hotels advertise stability
Airbnb: Ethics and Legality
• 75% of NYC listings illegal• Confusing terms & Conditions help Airbnb
The Change That Needs to Happen
• New Markets emerging, laws need to adapt• Airbnb and Hotel industry are complementary• Marriott CEO Arne Sorenson: Not worried• Propose new NYC Law• Be the model of needed change
The Results
• Citizens win• Renters are protected• Everyone is on the same playing field
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