SHARING ECONOMY MASTERCLASS IS THIS THE END OF TOURISM AS WE KNOW IT?
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1 SHARING ECONOMY MASTERCLASS IS THIS THE END OF TOURISM AS WE KNOW IT? ITB MARCH 2017 MANOLIS PSARROS -
2 IN THIS PRESENTATION: Sharing Economy Key Drivers & Challenges Sharing Economy TrendWatch & Regulatory Updates 7 Key Take-aways for the Tourism Sector
3 KEY DRIVERS & CHALLENGES
4 Global economy in transition Global economy in transition
5 Current economic models aren t working
6 The Future of Work?
7 Moving to a circular economy model
8 Sharing economy: "an economic model based on sharing underutilized assets from spaces to skills to stuff for monetary or non-monetary benefits'
9
10 Growing consumer demand
11 52% aware of P2P platforms
12 among those, 2 in 5 think the access to services is more conveniently organized
13 Basically it s about value for money..
14 THE CASE OF AIRBNB 129 million guests $1.6 billion this year. IN THIS PRESENTATION:
15 Airbnb is worth as much on paper as Marriott International
16 Airbnb s fast climbing valuation
17 60m bookings by 2020 from 10m today
18 growing to become 2 nd largest provider TOP HOTEL AND SHORT TERM RENTALS VALUE SALES
19 not just airbnb
20 P2P platforms are rapidly moving into new sectors
21
22 TOURISTS & VISITORS ARE SHARING MORE (and they like it)
23 Percent of Leisure Airbnb Renters Completely Satisfied With Elements of Last Airbnb Stay
24
25 Millennials Lead the way THE FASTEST GROWING CUSTOMER SEGMENT IN THE TOURISM INDUSTRY, EXPECTED TO REPRESENT 50% OF ALL TRAVELERS BY 2025
26 Access Vs Ownership
27 not just millennials
28 Gen Z is following
29 SE is heavily funded TOTAL MARKET FUNDING: 12+ BN TOP-50 START-UPS STOCK MARKET EVALUATION: 130+ BN
30 Access to the White House is Helpful too!
31 EUROPEAN COMMISSION OFFERING 24B to 'Help Risk-Takers Make The Leap' to a Circular Economy
32 DISRUPTION REMAINS A POLICY PRIORITY (Horizon 2020, SME instrument).
33 EU GUIDELINES IN COLLABORATIVE ECONOMY The collaborative economy creates new opportunities for services providers, innovative entrepreneurs and existing companies. It leads to greater choice for consumers, and often lower prices in the market. It can also contribute to increasing economic, social and environmental value of idle assets and resources, and increasing employment through more flexible job schedules. In some cases, the emergence of new business models impacts existing markets, creating tensions with existing goods and services providers. In part this stems from uncertainty relating to applicable regulation, e.g. on licensing, consumer protection, taxation, social security and employment models
34 Sharing economy or simply the new economy? SE expected to equal traditional rental economy s revenue growth by 2025
35 Growth brings challenges
36
37 41% not knowing who is responsible in case a problem arises EUROPEAN COMMISSION FLASH BAROMETER 438
38 LEGISLATION APPROACHES CUSTOMIZED WAIT&SEE SELF-REGULATION HEAVY-HANDED
39 Amsterdam: Non-compliance with STR regulations by around 20% of hosts brings a 60-day limiter
40 London: cap of 90 days per year and an Amsterdam-style limiter for non-registered hosts
41 Paris: online maps facilitate registration and monitoring
42 Barcelona: fines to p2p platforms for allowing unlicensed accommodation a key issue recently.
43 Berlin: recent decision to ban its residents from letting their flats on Airbnb limited to primary residences only by the local court
44 ARE P2P PLATFORMS AND THEIR USERS PAYING THEIR FAIR SHARE?
45 Airbnb s Roadmap on working with governments
46 More responses to be expected further to Airbnb s recent intention to secure tax deals with 700 cities
47 HOW THE TOURISM SECTOR REACTS?
48
49 Traditional tourism sector requests for a level playing field
50 But what if.. you can disrupt the disruptors?
51 ACCORHOTELS CEO: It s Foolish and Irresponsible to Fight Against the Sharing Economy
52
53 BUSINESS CULTURE This is where the world is taking us. All of those new services are very powerful and very well implemented and executed. You need to embrace it. S.BAZIN, CEO ACCOR
54 SHARING MARRIOT ECONOMY & LIQUIDSPACE & TOURISM
55 BUSINESS CULTURE This is where the world is taking us. All of those new services are very powerful and very well implemented and executed. You need to embrace it. S.BAZIN, CEO ACCOR
56 If we are already working with OTAs why not Airbnb? Is there a first mover advantage to joining Airbnb? D. KONG, BEST WESTERN CEO
57 7 KEY TAKEAWAYS
58 GET THE FULL PICTURE UNDERSTAND HOW THE SHARING ECONOMY WORKS IN YOUR DESTINATION
59 EMBRACE WITH CAUTION
60 PUT LOCAL PEOPLE FIRST
61 BUILD PARTNERSHIPS WITH GOVERNMENT, RESIDENT GROUPS, TRAVEL SECTOR AND P2P PLATFORMS
62 NO ONE-SIZE FITS ALL APPROACH DIFFERENT PLACES,DIFFERENT NEEDS
63 DISRUPT THE DISRUPTORS & FOCUS ON YOUR USPs
64 INTEGRATION IS COMMON SENSE NOT A STRATEGY
65 THANK YOU
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