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Handbook Research Sustainable Consumption

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The term sharing economy is mainly related to the description of the various types of economic activities which deal with online transactions. The growth of the open-source community is which refers to the process of peer-to-peer sharing of the access to the various products and services is a major part of the sharing economy. The transactions that are performed in the area of online marketing are also a part of the sharing economy concept. This can be defined as an economic model which is based on the peer-to-peer activity. The process related to sharing economy can also be termed as the collaborative consumption which is a concept that is trending in the industry (Assaf et al. 2015). This process significantly highlights the various abilities that the individuals have to rent or borrow goods from the concerned parties instead of buying or owning the goods.


Benefits that motivate the tourists to use the sharing economy in tourism

The sharing economy related concept has become a trend in the world of technology and has further influenced the major industries and the sectors. The hotel industry and the hospitality industry are affected in a huge manner by the concept of sharing economy. This is mainly a concept which is socio-economic in nature and is further build around the sharing of the human and physical resources. This process also includes the production of the various goods, the shared creation process and the distribution related activities of the market. This is further related to ability of the various consumers to grant temporary access to those physical assets that not utilized (Belk 2018).

The various entities which belong to sharing economy mainly share the goods which are not to the full capabilities with other entities in the market. This sharing process can further take place for a short or long period of time. The various hoteliers have to therefore act together so that they provide alternate process of accommodation facilities which are provided by the sharing accommodation. The industry formed by sharing economy is under the scrutiny of the commercial hoteliers and they have also started making plans that are related to the offering shared room facilities. They are also planning to provide the unique facilities that are currently provided by the sharing accommodation related facilities (Cusumano 2015).

The economic benefits that are provided by the shared accommodation are based on the lower amount of cost of the rooms and the services. The social benefits are related to the ways by which the travellers ate able to interact with the local people and get knowledge about their community. The cultural benefits are based on the knowledge that is gained by the travellers about the culture of the places where they are visiting. This helps them in gaining more knowledge about the area which they wish to visit. The environmental benefits of shared accommodation are based on the less usage of resources and the sustainable operations of the hospitality sector.

The major players of the sharing accommodation industry are, HomeToGo, HomeAway, FlipKey, Airbnb, Couchsurfing. The different organizations have created a pressure zone for the commercial hotels and have also affected the revenues and the profitability of these service providers (Ert, Fleischer and Magen 2016). The commercial hoteliers mainly serve the business related travellers and clients. The advent of sharing accommodation has gradually changed the concept related to the travel related options of the various travellers. The commercial hotels are also trying to understand the needs of the travellers and the ways by which they can match up with the sharing accommodation providers (Gobble 2015).

The biggest and famous operator of the sharing accommodation related concept is Airbnb which is used by the travellers on a large scale to book the sharing accommodation facilities. The major customer base of the sharing economy providers includes the travellers between the age group of 20 to 40 years of age who like make social interactions with the local residents of the areas where they are travelling. The income levels of the travellers who are the customers of shared accommodation are a part of the average income group. The hotel settings need to be authentic in nature which represents the culture of the local area and the food that they as well. The local interaction and unique time spent in the area will further encourage the travellers so that they increase their travel time. The usage of the internet in an active manner, the age of the customers, the technological availability and the travelling frequency are the major drivers of the concept related to peer-to-peer accommodation (Guttentag and Smith 2017).

The commercial hotel industry has been shaken up by the advent of the concept of sharing economy. The sharing economy related transactions that are made by the organizations mainly take place between the hotel brand and the direct travellers. The challenges and the opportunities that are placed by the sharing economy concept in the hospitality industry are being faced by the commercial hotels. The experience that is provided by the industry of hospitality are further being tested in many different ways which have not been imagined prior to this situation. The commercial hotels which are advanced in the technological area can understand the significance which is related to experience provided to the customers (Hamari, Sjöklint and Ukkonen 2016). This opportunity can be taken by the commercial hotels for increasing their revenues. The hoteliers can also try to meet the expectations of the consumers which are linked with the local interaction and experience that is provided by the sharing accommodation. The competitive advantage in the market can be gained by commercial hoteliers if they are able to provide best rates. They can also need to understand and act according to the needs of the consumers. The concept of sharing economy can increase the opportunities related to the services that can be provided to the provided to the travellers in the future. These increased opportunities can act as major challenges for the commercial hotels which are able to provide limited services (Jefferson-Jones 2014).


Experience based on hospitality delivered by sharing economy

According to, Jones, Hillier and Comfort (2016), the sharing accommodations provide the type of hospitality experience which is authentic and travellers can stay in the hotels in the ways by which the locals of that area stay there. The demands related to personalised experience has also increased among the travellers which have led to the services that are offered by the shared accommodation. The travellers have constant demands related to the services that are authentic and will help them in feeling like they are a part of the particular area. This can help in increasing the time for which they have planned to stay in that area. The authentic experience is provided by the local feel that the travellers can receive when they visit the share accommodation based hotels. The concept of shared accommodation is becoming commercialized as it is able to create micro-entrepreneurs who are able to provide their homes for the purpose of commercial use.

The services provided shared accommodation providers are linked with three major themes which include, the interaction with various hosts, interiors and unique accommodation, and interactions which take place with local culture and the people belonging to that culture. The experience that is gained by the travellers has been enhanced and it has been made more enlightening with the inception of shared accommodation. The style related to peer-to-peer accommodation has been successful in affecting the behaviour of the travellers (Lashley 2015). The significant impacts of the accommodation process mainly deal with the expansion related destinations that are selected, the frequency of travel and further increasing their stay in the hotels. The interactions that are made by the travellers on a social basis have added meaning to their travel and has reduced the costs of accommodations. This has encouraged the customers to select and travel to the destinations which they were not able to afford earlier (Martin 2016).

The facilities related to social interactions are not successfully provided by the commercial hotels. The guests of the various commercial hotels are not able to experience some select destinations due to the costs that are related to their travel (Martin 2016). The hotels are unable to provide the local feel and social experience that are provided to the travellers by sharing accommodation services. The business travellers are the major sector of customers who prefer to avail the experience that is provided by commercial hotels. The main reason behind this choice is the lack of intention of the business related travellers to extend the stay in hotels (Mohsin and Lengler 2015). This market of the commercial hotels is also under threat as the sharing accommodation providers are trying to capture this market as well. This can pose a threat towards the successful operations that are related to hospitality industry (Lashley 2015). The portfolio of commercial hotels is being expanded so that they are able to attract different consumers (Schor 2016).

Many changes are being made in the format of the commercial hotels and their business style so that they can compete with the sharing accommodation providers (Schor 2016). The environment of the hotels is being modified and types of interaction of the guests and managers have also changed. The guests can now enjoy the local food which is a major part of the culture within the comfort of their hotel rooms. The interaction of the hotel managers with the guests has also increased and has become more casual in nature (Schor and Fitzmaurice 2015).

The different hotels which are affected by sharing economy

The numerous shared accommodation service providers that operate in the Asia-Pacific region have been a major threat to the hotel and hospitality industry. The major advantages that are provided by the various service providers of this industry are related to the low prices which attract different travellers who cannot afford a stay in the commercial hotels. The prices that are offered by shared services are more than 200% lower as compared to the services that are provided by commercial hotels. This has been reason behind the drop of the sales of commercial hotels. The travellers are more attracted towards the low prices and unique services that are provided by the shared accommodation providers (Slee 2017). The various commercial organizations in San Francisco and New York are also affected by the fast growth of the shared accommodations.

The industry of three star hotels and the budget hotels has faced big challenges after the inception of Airbnb. The margins that were earned by the commercial hotels by providing high cost hospitality services are now affected by the low prices of shared accommodation service providers. The festivals were the major areas of profit making for the commercial hotel organizations. The organizations like Airbnb have however been able to capture this market by providing various travel related options of the travellers who are planning their holidays (Tussyadiah and Zach 2017). The competition levels between the conventional hotels and the shared accommodation service providers like Airbnb have risen in the last few years. The commercial hotels need to be much more focussed on the care that is taken by them to provide the best service to the guests. The luxury and three star hotels are trying to find out ways by which they can extend the stay of these travellers in their hotels. The needs of the travellers are changing on a regular basis and this issue needs to be addressed by the commercial hotels (Varma et al. 2016). The employees need to be collaborative in nature and help in each other so that they are able to provide high quality services to the guests. The levels of communication can also be increased and this can further enhance the experience that they have in the hotels.


Debate related to response of the three-star hotels located in Adelaide to sharing economy

The Rydges South Park Adelaide is the four-star hotel that is taken into consideration for the purpose of analysing the response that is provided to the sharing economy. The hotel is mainly suitable for the leisure and the business travellers. The organization provides a comfortable and welcoming atmosphere to the various travellers. The prime locations that are nearby to the area where the hotel is located are the Adelaide Parklands, Adelaide Hills, Barossa Valley and Clare Valley (Rydges South Park Adelaide. 2018). The hotel also provides a wide range of luxury services which can delight the leisure and the business related travellers. The suites and the rooms that are present in the hotel are bright and spacious in nature and the balconies provide a beautiful view of the Adelaide city and the parklands. The organization has been facing competition from the shared accommodation based hotels, which are able to provide localized experience to the travellers.

The hotel mainly offers high levels of services to the guests and take care of their needs as well. The location of the hotel premises in the heart of the city has been a major advantage related to the services that are provided by them (Rydges South Park Adelaide. 2018). The guests are provided with the facility to order local food from the various restaurants that are located near the hotel. The food from these restaurants are then provided to the guests in their rooms. The modern facilities that are present in the hotel help in providing the customers with a comfortable stay. The guests are also provided with offers that are designed based on the need levels of the previous guests. The feedback related to their services and the satisfaction levels of the guests are collected (Yoon 2017). The services and the offers are then designed based on the satisfaction levels of the guests. The rooms offered by the hotel range from deluxe rooms, rooms for business purposes and the family rooms as well. The rooms are also packed with high-speed internet related services and other modern amenities.

The first step that can be effective in increasing the revenues of the organization is to provide packages and offers to the customers. The hotel needs to provide discount packages to the travellers. The holiday packages that can be provided to the customers will attract them towards the services of the hotel. The lowering of rates will be able to attract more customers towards the hotel and the high quality services that are provided to the guests. This is related to the promotional mix based concept of marketing which is developed for attracting consumers (Zervas, Proserpio and Byers 2017). The reduction of room tariffs will help in increasing the customer base. The high level services provided in affordable rates will be a competitive advantage for the hotel. Training can be provided to the staff so that they are able to interact in an open manner with the guests and make them feel like locals. The staff will be trained about the various services that are to be provided to the customers which is based on the concept of training and development in human resources. The local cuisine can also be provided to the guests which will help in increasing their stay in the hotels.



The essay can be concluded with the learning that sharing economy provides many different aspects which can affect the revenues of the traditional and commercial hotels in an adverse manner. The hospitality industry has been under pressure due to the increase in the services provided by shared accommodations. The unique experience offered by shared accommodation service providers has been another reason behind the loss of revenues of the traditional hotel organizations. The local feel and the atmosphere that is provided by shared accommodation is a major feature which attracts the customers. The commercial organizations have also provided their response to these issues and are now trying to compete with the shared accommodation related service providers. This will further enable the commercial or traditional hotels to regain their position in the market which is related to the best services provided to customers as low prices. The sharing economy related activities have therefore been able to bring major changes in the hospitality industry.



Assaf, A.G., Josiassen, A., Cvelbar, L.K. and Woo, L., 2015. The effects of customer voice on hotel performance. International Journal of Hospitality Management, 44, pp.77-83.

Belk, R., 2018. Foreword: The Sharing Economy. The Rise of the Sharing Economy: Exploring the Challenges and Opportunities of Collaborative Consumption.

Cusumano, M.A., 2015. How traditional firms must compete in the sharing economy. Communications of the ACM, 58(1), pp.32-34.

Ert, E., Fleischer, A. and Magen, N., 2016. Trust and reputation in the sharing economy: The role of personal photos in Airbnb. Tourism Management, 55, pp.62-73.

Gobble, M.M., 2015. Regulating innovation in the new economy. Research-Technology Management, 58(2), pp.62-67.

Guttentag, D.A. and Smith, S.L., 2017. Assessing Airbnb as a disruptive innovation relative to hotels: Substitution and comparative performance expectations. International Journal of Hospitality Management, 64, pp.1-10.

Hamari, J., Sjöklint, M. and Ukkonen, A., 2016. The sharing economy: Why people participate in collaborative consumption. Journal of the Association for Information Science and Technology, 67(9), pp.2047-2059.

Jefferson-Jones, J., 2014. Airbnb and the housing segment of the modern sharing economy: Are short-term rental restrictions an unconstitutional taking. Hastings Const. LQ, 42, p.557.

Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some personal reflections on corporate challenges and research agendas. International Journal of Contemporary Hospitality Management, 28(1), pp.36-67.

Lashley, C., 2015. Hospitality and hospitableness. Research in Hospitality Management, 5(1), pp.1-7.

Martin, C.J., 2016. The sharing economy: A pathway to sustainability or a nightmarish form of neoliberal capitalism?. Ecological Economics, 121, pp.149-159.

Mohsin, A. and Lengler, J., 2015. Service experience through the eyes of budget hotel guests: do factors of importance influence performance dimensions?. Journal of Hospitality and Tourism Management, 23, pp.23-34.

Rydges South Park Adelaide. (2018). Adelaide Hotel Accommodation | Rydges South Park Adelaide. [online] Available at: [Accessed 2 Apr. 2018].

Schor, J., 2016. DEBATING THE SHARING ECONOMY. Journal of Self-Governance & Management Economics, 4(3).

Schor, J.B. and Fitzmaurice, C.J., 2015. 26. Collaborating and connecting: the emergence of the sharing economy. Handbook of research on sustainable consumption, 410.

Slee, T., 2017. What's yours is mine: Against the Sharing Economy. Scribe Publications.

Tussyadiah, I.P. and Zach, F., 2017. Identifying salient attributes of peer-to-peer accommodation experience. Journal of Travel & Tourism Marketing, 34(5), pp.636-652.

Varma, A., Jukic, N., Pestek, A., Shultz, C.J. and Nestorov, S., 2016. Airbnb: Exciting innovation or passing fad?. Tourism Management Perspectives, 20, pp.228-237.


Zervas, G., Proserpio, D. and Byers, J.W., 2017. The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Journal of Marketing Research, 54(5), pp.687-705.


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