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L101 Accommodation

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Question

The Term Sharing Economy?

  • Collaborative consumption’- use of network technologies to rent, lend, swap, barter and share personal products and services.  Sharing companies;
  • Demand: Consumers wanting lower prices for goods and services. •? Supply: Everyday people wanting an income using their existing resources.
  • The relationship between the ‘sharing economy’ and ‘tourism’ continues to grow and will increasingly intertwine as consumers are given more choices in the way in which they travel.

Is Airbnb a 'disruptive product'

A disruptive product will generally underperform with regards to the prevailing products’ key performance attributes(s), but will offer a distinct set of benefits, typically focused around being cheaper, more convenient or simpler. Consequently, the disruptive product appeals to the low-end of the market or creates a completely new market.
 
Airbnb has an innovative internet-based business model with its unique appeal to tourists. Given it’s disruptive potential, Airbnb’s rise is of great significance for the traditional tourism accommodation sector.

Is Airbnb a challenger?  

  • Challenger brands are those that set-out to do things differently, often differentiating by necessity to capture market share from established leaders when they are not in a position to go-head-tohead- think Uber (the world’s largest taxi brand, yet they don’t own a single car) and Airbnb (the world’s largest hotel brand that doesn’t own a single room).
  • The modern challengers are now challenging something about the category. Is Airbnb challenging the conventions of the hospitality business?

Requirements:

  • What is the ‘sharing economy’ and the ‘network economy’?
  • How do they differ? Clearly state whether you consider Airbnb to be part of the ‘sharing economy’ or a component of the ‘network economy’.
  • Is Airbnb a ‘disruptor’ or a competitor or neither? Make a clear and comprehensive argument to clarify your position.
  • Is Airbnb a different type of competitor? Is there place in the accommodation sector for different types of competitors?
  • Research the effect Airbnb has had on the hotel sector. This will help you decide on whether it is a ‘disruptor’ or ‘competitor’ .
  • Come to a conclusion and justify it.
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My Assignment Help. Accommodation [Internet]. My Assignment Help. 2021 [cited 19 April 2021]. Available from: https://myassignmenthelp.com/free-samples/l101-accommodation/sharing-economy.html.


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