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Sharing economy/Collaborative consumption:

Its affect on the travel industry

David L Jones, PhD

Professor and Programme Director

Hospitality Business

Singapore Institute of Technology

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DLJ & Corporate Travel Management

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Brian Chesky - CEO of AirBnB & Rachel Botsman – Author of What’s Mine is Yours

University of San FranciscoAnnual Symposium 2013

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Collaborative Consumption

• Definition– Collaborative Consumption describes the rapid

explosion in swapping, sharing, bartering, trading and renting being reinvented through the latest technologies and peer-to-peer marketplaces in ways and on a scale never possible before (www.collabortiveconsumption.com)

– Originated in Mainland China with the tuangou(Zheng, 2011)

– Also called “sharing economy” or “meshing”

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The Shift

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Sharing Economy in Corporate Travel

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My Personal Experience

#ACTEasia$10 Billion Company

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Airbnb Growth - Internationally

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How About Singapore?

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Statistica – June 2013

Major USA Cities Mix

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San Francisco and Sharing Economy

• Guest rooms inventory

• Traditional hotel rooms = 33,000

• AirBnB listings = 5-10,000

• Conflicting interests

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Issues in SF AirBnB Controversy

Lodging Industry

• Hotel Tax

• Safety

• Zoning laws

• Rental market

Sharing Economy People & sharing

Excess consumption

Entrepreneurship

Trust

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Game Changer

Chip Conley – Head of Global Hospitality and Strategy - AirBnB

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Only 10% of their business today

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“We will never compete with Marriott or Hilton for the two-day road warriors,” Conley says. “We don’t want that business traveler. For the road warriors that go two days here, two days there, and want a rewards program, that’s just not us.”

15 Oct 2014 - Quartz

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“It makes a lot more sense to have a place with a kitchen so we can cook; it feels more like home,”

From a Tech Industry Corporate TravelerBased on Stay in SF

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Advertising through Traditional Channels - AMEX

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Corporate Travel Impact

• Concur Technologies incorporated AirBnB this year

• Major convention bureaus for conferences

• Companies using them

– Salesforce

– Evernote

– Lyft

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Concur’s Tracking Results

• AirBnB

– Tripled, account for $1 million in expenses in first quarter of 2015

– One of fastest growing lodging segments

• Uber

– Usage it tracks grew ninefold from 2013 to 2014

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Other Sharing Economy Impacts

Going Mainstream

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Transportation Examples

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Meeting Space and Workplaces

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Are They Friend or Foe?

Neither, It’s a Wake-up Call

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Rethinking Distribution Channel

• Rethinking value creation

• Rethinking value consumption

• Rethinking quality control

• Rethinking scale

Choudray – Forbes 7/7/14

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