The sharing economy is steadily growing and in some cases it's seeing impressive growth. Early last year, PWC predicted that the sharing economy would grow by 60% in 2017 to 27bn in Europe alone. Opinion writers at the Brookings Institute made a prediction that the sharing economy would grow globally to $335 billion by 2025.
Groups like Airbnb and Uber have been significant pioneers of this explosive sharing economy. The “accommodation sharing economy” refers to property owners who are making their homes available for short-term rentals. These rentals are becoming significant contenders in the accommodation marketplace, and the process is facilitated by internet platforms. Marketing properties, managing bookings, and facilitating payments is easier than ever.
A 2017 report by the European Parliamentary Research Service stated that the sharing economy also appears to respond better to changes in demand for services. For instance, in major cities where traditional accommodations are at saturation point, or in rural areas where accommodation options are limited, individuals are turning to Airbnb and other short-term vacation rental sites. Further, a study conducted in Texas demonstrated that Airbnb’s impact on hotel revenue is in the 8% to 10% range, with lower-priced hotels and hotels that don’t cater to business travellers being the most affected. The impact is due to the differentiating feature of peer-to-peer platforms – they enable instantaneous supply to meet demand.
The sharing economy tends to allow for more flexibility, and guests appreciate these platforms for their personalized approach, authenticity, and contact with local citizens. Airbnb changed the game with travel accommodations by allowing guests not just to live like locals, but to choose homes that reflect the distinct experience they want! Airbnb Experiences has taken this one step further, providing a service that turns regular people into tour guides.
Airbnb targets a very specific type of traveller. It prides itself on connecting people with authentic and unique travel experiences, whether by renting out a retro studio in Manhattan or by staying in a historic Chateau in France. According to eMarketer, 16.9% of US adult internet users, about 36.8 million people, have used their Airbnb account at least once in 2017. And with over 3 million listings in more than 65,000 cities in close to 200 countries, Airbnb is ready to offer a broad range of both accommodations and destinations.
Traditional hotels have been missing out on this new and evolving customer base, until now. Airbnb made a significant announcement cited by Bloomberg that it will be featuring inventory from boutique hotels. But how will hotels manage to get their inventory on Airbnb, market it and manage a calendar for each and every room that they make available? It's simply not sustainable without a tech solution.
Introducing Jetstream, the Only Tech Solution to Connect Boutique Hotels and Resorts to Airbnb
Jetstream is a revolutionary all-in-one tech solution that connects resort and hotel inventory to Airbnb, HomeAway, VRBO, and FlipKey. Jetstream's technology and team of travel experts manage all aspects of listing available hotel units — from connecting to the hotel's PMS to the various marketplaces, to marketing/optimizing its listings, to guest relations and reservation support.
This solution provides an incredible opportunity for resorts and hotels to reach an entirely new and evolving guest demographic and gain increased access to year-round guests who are proven to stay longer and have a higher-than-average spend.
