Welcome to the ITB Academy Webinar. The Sharing Economy - Changing Travel Demands & How to Capitalise. Euromonitor International

Transcription

1 1 Welcome to the ITB Academy Webinar The Sharing Economy - Changing Travel Demands & How to Capitalise

2 THE SHARING ECONOMY Euromonitor International: Strategic Global Market Research 2

3 CURRENT STATE OF THE INDUSTRY DRIVERS OF THE SHARING ECONOMY HOTELS RESPOND OPPORTUNITIES AND FUTURE DIRECTION KEY TAKEAWAYS

4 1.1 bn 4% INBOUND ARRIVALS IN bn 7% DOMESTIC TRIPS IN bn 5% ROOM NIGHTS IN 2014

5 CURRENT STATE OF THE INDUSTRY Lodging sales dominated by hotels 5 Global Lodging Segmentation (Value Sales ) 14% 1% 6% 38% Chained Hotels Independent Hotels 7% Private Rentals Hostels Self-Catering Apartments Other Lodging 35% Total: US$ 662 billion

6 % y-o-y growth CURRENT STATE OF THE INDUSTRY Private rentals outperform hotels 6 20 Hotels and Private Rentals Value Sales Growth CAGR % 2.9% Hotels Private Rentals

7 Value sales (US$ million) CURRENT STATE OF THE INDUSTRY Strong rise of peer to peer players Airbnb and HomeAway Value Sales

8 CURRENT STATE OF THE INDUSTRY Clarifying the terminology 8 PEER-TO- PEER THE SHARING ECONOMY BUSINESS- TO-PEER PEER-TO- BUSINESS- TO-PEER CIRCULAR ECONOMY

9 CURRENT STATE OF THE INDUSTRY Today, you can share almost anything 9

10 CURRENT STATE OF THE INDUSTRY DRIVERS OF THE SHARING ECONOMY HOTELS RESPOND OPPORTUNITIES AND FUTURE DIRECTION KEY TAKEAWAYS

11 DRIVERS OF THE SHARING ECONOMY Drivers for growth of sharing economy 11 MAIN DRIVERS OF THE SHARING ECONOMY Social Environmental Economic Technological The need to make real connections Reducing travelrelated impact on the natural environment Better value for money Better match supply and demand through mobile technology Search for unique and more local experiences Five R s: Reduce, reuse, recycle, repair and redistribute Hosting and sharing provide (extra) income Online payment systems reduce opportunities for fraud

12 DRIVERS OF THE SHARING ECONOMY Growth in internet users enables sharing economy 12 North America Western Europe Eastern Europe Asia Pacific MEA Latin America Australasia Percentage of population using the internet

13 Number of people ( 000s) % share of population DRIVERS OF THE SHARING ECONOMY Millennials are first truly global generation Millennial Population by Region Asia Pacific Australasia Eastern Europe Latin America Middle East and Africa North America Western Europe 2014 Millennial population (15-35 year old) Millennial % share of total population

14 Average Annual Gross Income (US$) DRIVERS OF THE SHARING ECONOMY European millennial population and income in Switzerland Norway Denmark Italy Spain United Kingdom Germany France Turkey Russia Year Population ( 000s)

15 DRIVERS OF THE SHARING ECONOMY Millennials not a homogeneous consumer segment 15 I want to have and be the best Average household income: US$ 53,077 Gender balance: 50% male COMMON TRAITS: TECH SAVVY My life is hectic but exciting Average household income: US$ 39,456 Gender balance: 52% female OPEN TO COLLABORATIVE CONSUMPTION I live life on my own terms Average household income: US$ 42,716 Gender balance: 55% male Note: Results are based on responses of 16,300 individuals to Euromonitor s Global Consumer Trends survey, administered in 2013 to online consumers in Brazil, China, France, Germany, India, Japan, Russia, UK, USA.

16 % respondents DRIVERS OF THE SHARING ECONOMY Millennials more comfortable with social media 16 70% 60% 50% 40% 30% 20% 10% 0% 'Follow' or 'like' social media feed/post Share/retweet social media feed/post Leave feedback via a social media post Buy via social media Share a product photo tagged to a company 15-29yrs 30-44yrs 45-59yrs 60+yrs Note: Results are based on the aggregate responses of 8,100 individuals to Euromonitor s Hyperconnectivity survey, administered in December 2014 to online consumers in Australia, Brazil, China, Colombia, France, Germany, India, Indonesia, Japan, Mexico, Russia, Saudi Arabia, Spain, Turkey, UAE, UK, USA.

17 DRIVERS OF THE SHARING ECONOMY The online travel booker 17 OTAs Meta-search Review websites Social media Price/discount Location Rating scores/reviews Photos Brand

18 CURRENT STATE OF THE INDUSTRY DRIVERS OF THE SHARING ECONOMY HOTELS RESPOND OPPORTUNITIES AND FUTURE DIRECTION KEY TAKEAWAYS

19 2014 Value Sales (US$ billion) 2009/14 % CAGR HOTELS RESPOND Hotels unable to compete with p2p growth rates % % % % % 5 50% 0 0% 2014 Size 09/14 % CAGR

20 HOTELS RESPOND Hotel lobbying has mixed results 20 HOSTILITY HOSPITALITY New York Barcelona Paris London Amsterdam

21 HOTELS RESPOND Finding alternative ways to benefit from changing demands 21 Investment in P2P companies Brand introductions and acquisitions Media campaigns targeting millennials Introduction of technology in hotels

22 HOTELS RESPOND Hotels jump on peer-to-peer bandwagon 22 Investment in P2P companies Brand introductions and acquisitions Media campaigns targeting millennials Introduction of technology in hotels

23 HOTELS RESPOND Marriott s Moxy targets Millennials 23 Investment in P2P companies Brand introductions and acquisitions Media campaigns targeting millennials Introduction of technology in hotels

24 HOTELS RESPOND Marriott s Moxy targets Millennials 24 Investment in P2P companies Brand introductions and acquisitions Media campaigns targeting millennials Introduction of technology in hotels

25 HOTELS RESPOND Marriott launches own content studio 25 Investment in P2P companies Brand introductions and acquisitions Media campaigns targeting millennials Introduction of technology in hotels

26 HOTELS RESPOND Marriott launches own content studio 26 Investment in P2P companies Brand introductions and acquisitions Media campaigns targeting millennials Introduction of technology in hotels

27 HOTELS RESPOND Starwood frontrunner in technological innovations 27 Investment in P2P companies Brand introductions and acquisitions Media campaigns targeting millennials Introduction of technology in hotels

28 HOTELS RESPOND Starwood frontrunner in technological innovations 28 Investment in P2P companies Brand introductions and acquisitions Media campaigns targeting millennials Introduction of technology in hotels

29 CURRENT STATE OF THE INDUSTRY DRIVERS OF THE SHARING ECONOMY HOTELS RESPOND OPPORTUNITIES AND FUTURE DIRECTION KEY TAKEAWAYS

30 % y-o-y growth OPPORTUNITIES AND FUTURE DIRECTION Future focus on high-end as peer-to-peer goes luxury Growth of Average Household Income by Region Asia Pacific Eastern Europe Middle East and Africa Western Europe Australasia Latin America North America

31 OPPORTUNITIES AND FUTURE DIRECTION Asia the next frontier 31

32 OPPORTUNITIES AND FUTURE DIRECTION Entrants to the sharing economy: Who s next? billion active users per month, P2P payments introduced launch of local marketplace for services in US cities. Already room rentals offered on ebay, but not focus area yet. Apple Pay mobile payments first step into P2P payments?

33 OPPORTUNITIES AND FUTURE DIRECTION Compartmentalisation rules travel industry 33 Hotels Home swap Selfcatering apts. Traditional Timeshare Peer-topeer Serviced apts. Hostels Holiday homes Spare rooms 5 Sea/ River Car Share Taxi Mass Transport Rail Shared Transport Air Bus Bike Share Ride Share

34 OPPORTUNITIES AND FUTURE DIRECTION Moving towards (and beyond) a multi-modal hub network 34 Bus Rail Car share Spare rooms Boutique hotels Self-service apts. Lodging Holiday homes Bike share 0 Corporate Air Serviced apts. Timeshare hub hotels Hostel Home swap Taxi Ride share Sea/ river

35 OPPORTUNITIES AND FUTURE DIRECTION The next challenge: Generation Alpha 35 Social social media is the major part of online interactions Connected interacted with technology all their lives. Expect personalisation and hyperconnectivity via wearables Generation Alpha born after 2010 Responsible sustainable living and travelling are no longer optional but vital

36 OPPORTUNITIES AND FUTURE DIRECTION Growing number of urbanites 36 Billions of People Total 8.5 Urban 5.1 Rural billion new urban consumers

37 OPPORTUNITIES AND FUTURE DIRECTION The rise of mega-cities 37

38 CURRENT STATE OF THE INDUSTRY DRIVERS OF THE SHARING ECONOMY HOTELS RESPOND OPPORTUNITIES AND FUTURE DIRECTION KEY TAKEAWAYS

39 KEY TAKE-AWAYS Capitalise on changing consumer demands and sharing economy 39 Brand commoditisation is a threat, but the internet gives access to a growing number of consumers if you know how to reach them Millennials offer many opportunities, but are a heterogeneous consumer group Get ready for generation Alpha Hyper-connectivity and sustainability are becoming a must Sharing economy is becoming more professional and commercial: look out for new entrants Peer-to-peer and traditional accommodation will blend together, serviced by a multi-modal transportation system The future lies in smart cities, as the sharing economy will need to be integrated in existing infrastructure to improve efficiency

40 THANK YOU FOR LISTENING Dr Wouter Geerts Travel Analyst - Lodging Questions about ITB Academy: Tel Mail varga@messe-berlin.de Web