Sharing Economy

An introduction to the

Daniel Ord Rasmussen @danielord

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We help organisations develop. We often work with digital approaches - but not always.

Seismonaut?

Introduction to the Sharing EconomyOr the Collaborative Economy, if you prefer.

“An economic model based on sharing, swapping, trading, or renting products and services, enabling access over ownership.”

- collaborativeconsumption.com

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It is a trend in the business landscape in general, but is perhaps especially important for the tourism sector.

The general idea: The utilisation of unspent ressources made possible through social sharing platforms and marketplaces.

Airbnb as an exampleProbably the most well known one too.

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Your house is emtpy while you are on holiday.

That’s a waste of ressources.

So what is Airbnb?

• A platform that allows private individuals to share their homes:

• Single rooms

• Entire homes

• “Unique homes”

In their own words• According to Airbnb the service contributes to local

economies, because it expands the existing ecosystem rather than cannibalising it.

• In Paris 70 % of listings are outside of central tourism districts.

Kilde: Airbnb

Airbnb in NorwayLatest stats

8.107As of the 8th of October 2015 there are

Airbnb listings i Norway (Source: Airbnb)

Kilder: Aja Guldhammer, Airbnb, og NHC http://www.nordichotelconsulting.com/files/NO-monthly-reports/Markedsrapport_Norge_august.pdf

79.638For comparison, there are

hotel rooms (Source: NHC)

Kilder: Aja Guldhammer, Airbnb, og NHC http://www.nordichotelconsulting.com/files/NO-monthly-reports/Markedsrapport_Norge_august.pdf

1.040Another way of looking at it is that there are

hotels i all of Norway (Source: NHC)

Kilder: Aja Guldhammer, Airbnb, og NHC http://www.nordichotelconsulting.com/files/NO-monthly-reports/Markedsrapport_Norge_august.pdf

3.502But in Oslo alone there are

Airbnb listings (Source: Airbnb)

Kilder: Aja Guldhammer, Airbnb, og NHC http://www.nordichotelconsulting.com/files/NO-monthly-reports/Markedsrapport_Norge_august.pdf

Airbnb is so big that others are creating companion services• Hotels often work with

dynamic pricing.

• Pricemethod allows you to do the same with Airbnb.

• A management system for a management system - a professional approach to an amateur platform.

The Airbnb-model• Airbnb is now worth more than all of Mariott

• Marriott: $21 mia. (Source: WSJ)

• Airbnb $24 mia. (Source: WSJ)

• The success of Airbnb has created a model for what people expect out of sharing economy-services.

• Airbnb is still fighting laws and legislation all over the world. Something that is quite common in the sharing economy.

http://www.wsj.com/articles/the-secret-math-of-airbnbs-24-billion-valuation-1434568517

Norwegian law• Norwegian law allows for renting out up to 50 % of a

home tax free.

• Renting out an entire home is not tax free - but the first 20.000 kr. are.

• “Leieinntekter ved utleie av bolig regnes som kapitalinntekt, og skattlegges med 28 prosent. På slutten av året kan du gå inn på Airbnb sine sider for å finne ut hvor mye du har leid ut for det året, slik at du kan føre det inn i selvangivelsen.” (Source: finanssans.no)

http://www.finanssans.no/dette-ma-du-passe-pa-nar-du-leier-ut-med-airbnb/

“Airbnb for bikes”• Danish company - http://www.cyclister.com/

• Example of the “Airbnb for X” model.

• Renting a bike on Cyclister costs roughly 6 to 12 euros per day.

• Is there a market? According to them, 25 % of tourists visiting Denmark rent a bike.

http://www.pcworld.com/article/2843192/cyclister-wants-to-become-an-airbnb-for-bicycles.html

“Airbnb for dogs”

Valued at more than $ 140 mio.According to Fortune, TechCrunch og Pitchbook

http://techcrunch.com/2014/11/10/dogvacay-airbnb-for-dogs-nabs-25m-in-funding/ https://www.quora.com/Startup-and-Private-Valuations/What-is-the-latest-valuation-of-DogVacay-in-2014

AirpnpAirbnb for toilets

• Boathound - for boats

• Hipcamp - for camp sites

• StreetLend - for everyday items

• Housefed - for home-cooked food

• Vayable - for experiences

• Spinlister - for snowboards and skis

• Spot Park - for parking

• …

… and the award for most outrageous Airbnb for X-service goes to…

http://canistaywithyouwhileirentmyplaceonairbnb.com/

Airbnb for Airbnb

Why are these services important?• They may not be on their own - but the proliferation of

them is.

• The Sharing Economy no longer only affects hotels - many parts of the tourism industry are being affected.

• As a tourism actor it is important to keep up with what this means for your sector.

• There will undoubtedly be both new business models and ideas worth pursuing.

The Sharing Economy isn’t just about tangible products and services. It’s also having an influence on how tourists view an authentic travelling experience.

Guest want to be travellers - not tourists.

“Intangible heritage”• Previously, people’s understanding of “authentic experiences”

was based on symbols built over time, i.e. the Eiffel Tower.

• Today there is an increasing interest in “intangible heritage”.

• Pop culture, local traditions and storytelling.

• Increasing interest in active participation vs. passiv observation.

• 27 % of travellers from the US are “sophisticated explorers” for whom “exploring new cultures and their traditions” is the number one reason to go.

• The previous way of viewing authenticity is still prevalent in emerging markets.

Image: iStock Sources: Greg Richards 2014 & 2015 Resonance Report Portrait of the US International Traveller via http://www.slideshare.net/chrisfair/15-024-res-webinar-tourism-2020-high-res-opt

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Share your passion with others

Image: iStock

Enriches destinations• Travellers seeks authentic local experiences.

• More people take shorter breaks.

• Sometimes they will be interested in a summerhouse, other times a hotel and other times an Airbnb-home.

Image: iStock

Enriches destinations• Destinations need to widen their product offering to

appeal to increasingly “capable” travellers - sharing economy-services ease this proces.

• Services such as Airbnb help foster local host-culture - makes locals feel a part of the tourism industry in a new way (review culture etc.).

There are drawbacks• Laws and liability

• Trust and safety

• Traditional business models may be keyed in to local economies in a big way

• Service level based on review culture (“Give me this, or I’ll give you a bad review…”

See the Sharing Economy as an opportunity - not a threat• More choice and more experiences means a more

attractive destination.

• There are challenges for existing businesses - but also possibilities of new products and new places to market existing offerings.

• Don’t be afraid to make alternative set-ups and new types of cooperative efforts.

European PGA Tour in Vesthimmerland, Denmark

Image: iStock

• Massive event, thousands of visitors - not enough hotels!

• Local municipality worked with Airbnb to teach locals how to add their homes to the available hospitality.

• = far more places for guests to stay!

Northside Festival, Aarhus Denmark• Music festival attracting 25.000 visitors to a

city with 1.892 hotel rooms. • Cooperative project between the festival and

Airbnb had both featuring each other on social media etc.

• = more places for people to sleep

Horesta source: http://www.horesta.dk/sitecore/shell/Controls/Rich%20Text%20Editor/~/media/Filer/Materialer/tendens/2014/Hotelkapacitet_Januar2014ver5.ashx Image: https://www.flickr.com/photos/kristoffer-trolle/

https://www.flickr.com/photos/daspunkt/18840294641

Hvide Sande DMO, Denmark• Offered free courses in the use of

Vayable

• Goal: Increase the amount of experiences available to guests by having locals offer tours via social marketplaces

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http://www.flickr.com

/photos/stuckincustoms/2380543038/ Thanks for listening!

Questions? Let’s talk!daniel@seismonaut.com

Twitter: @danielord