FUTURE OF THE TRAVEL SHARING ECONOMY ITB BERLIN
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FUTURE OF THE TRAVEL SHARING ECONOMY ITB BERLIN MARCH 2015
Transcript of FUTURE OF THE TRAVEL SHARING ECONOMY ITB BERLIN
FUTURE OF THE TRAVEL SHARING ECONOMY
ITB BERLIN
MARCH 2015
KEY TRENDS & CHALLENGES
OPPORTUNITIES & FUTURE DIRECTION
© Euromonitor International
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Why the rise of the sharing economy?KEY TRENDS AND CHALLENGES
Economics
Environment
Community
Response to recession and green zeitgeist Driven by urbanisation and technology Generation Y initial adopters but more diverse appeal
Source: What’s Mine is Yours: the Rise of Collaborative Consumption, Rachel Botsman
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Technology key role in developing the sharing economySocial networks & reviews provide confidence Mobile & geo-based apps –on the go bookings & real-time info
Technological disruption plays a critical roleKEY TRENDS AND CHALLENGES
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Quantifying private rentalsKEY TRENDS AND CHALLENGES
Global % Value Breakdown of Travel Accommodation 2013
Hotels
Private accommodation
Other accommodation
US$37 bn private rental sales, majority in Asia and EuropeDwarfed in comparison by global hotel sales – only 6%
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Airbnb and HomeAway competing with OTAs / TOsExpedia lists HomeAway properties Expected to enter GDS to target business travel
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2009 2010 2011 2012 2013
US
$ m
illio
n
Leading OTAs vs Rental Brands Value
Sales 2009-2013
Expedia Priceline.com
HomeAway Airbnb
Sharing brands rise up the ranksKEY TRENDS AND CHALLENGES
Paris
€185 million
1,100 jobs
New York
€461 million
4,577 jobs
Sydney
€140 million
1,642 jobs
Berlin
€100 million
3,166 jobs
Barcelona
€175 million
4,000 jobs
Economic Impact of Airbnb 2013
Source: AirbnbSource: Euromonitor International
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Uber valued at US$40 billion, only 6 years old 55 countries, 250 citiesControversy - legal challenges, protests and court cases
Uber goes for global expansionKEY TRENDS AND CHALLENGES
Key Car Metrics 2007-2014
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Car share members to grow from 2.3 million members to 12 million by 2020 (Navigant Research)
Zipcar -AvisBudget
US$296 million
870,000 members
Hertz 24/7 -available in 9
countries
by the hour
BlablaCar –
ride- sharing
10 European countries
Drivy -France,
250,000 members,
16,000 vehicles
Sharing and car rental convergeKEY TRENDS AND CHALLENGES
Key Players in Car Sharing
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Legislative hurdles to overcomeKEY TRENDS AND CHALLENGES
Tax
Owners or drivers not paying tax on revenue earned
Workers Rights
No insurance, pension, overtime/ holiday pay
Regulations
Lack of background checks
Unmet safety regulations
Zoning
Residential zones ignored -noise & mess
KEY TRENDS & CHALLENGES
OPPORTUNITIES & FUTURE DIRECTION
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New travel landscape with peer to peerOPPORTUNITIES AND FUTURE DIRECTION
Search engines and
meta search
ConsumersSocial media and review
websites
Affiliate websites
Online travel agents
High street travel agents
Travel companies
websites
Travel Brands
Peer to
Peer
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Mobile technology crucial to expansion of sharing
Wearables as mainstream
Apple Pay to take mobile payments to the masses
Future technology facilitates sharingOPPORTUNITIES AND FUTURE DIRECTION
Sharing brand
Ancillary services
Technology
Payments
Competitors
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Link travellers with locals egVayableChallenge of going global
Tours & activities
Private rentals on OTAs egExpedia & HomeAwayPartnerships with sharing brands Carrier partnerships for pre-loaded apps
Corporates
Low barriers to entryTraditional B&Bs use sharing platforms
Independents
Opportunities to exploreOPPORTUNITIES AND FUTURE DIRECTION
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Airbnb and Uber launched dedicated business websitesFlightCar first sharing brand signed with GDS (Worldspan)Concur integrated Uber & Airbnb into TripIt
Business travel – the next frontierOPPORTUNITIES AND FUTURE DIRECTION
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1 billion users worldwide, P2P huge potential
2014 launch of local services marketplace to build up local services
Pioneer
eBay has the potential to offer room rentals
Apple Pay mobile payments drive will boost P2P
Future entrants to the sharing economy: Who’s next?OPPORTUNITIES AND FUTURE DIRECTION
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Best of both worlds
Driven by Generation Y
Align with industry standards & regulation
Legislation likely to change
City authorities to re-examine legislation
Bans but not always enforced
Travel brands on board
Adopt sharing principles
Launch sharing brand
Partner with sharing brands
Post-peer landscapeOPPORTUNITIES AND FUTURE DIRECTION
THANK YOU FOR LISTENING
Caroline BremnerHead of Travel [email protected]
Report for download: http://bit.ly/ITB-EMIreport
@carolinebremner @euromonitor
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