Showing posts with label #sharingeconomy. Show all posts
Showing posts with label #sharingeconomy. Show all posts

Tuesday, 16 February 2016

The role of IT on sharing economy in the tourism sector

“Sharing Economy” is a frequently used expression nowadays, which can be defined as “peer-to-peer-based sharing of access to goods and services”. This new way of consuming is also a major trend within the tourism sector. It was revolutionized by the sharing economy in several ways: hospitality is affected by the sharing of individuals’ lodge; Destination Marketing Organization’s traditional offices and brochures are not enough anymore to provide information… Restaurants, car rentals, travel agencies face a new competition coming from individuals or small companies. But these competitors are not the ones you meet in real life: their growth is strongly linked to the increasing place of IT in business. Social media, websites, online communities gave birth to a whole range of services and new kind of companies which competes the traditional tourism industry.
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Sharing Economy, a globalized and connected world (© Octo Talks blog)
AirBnb is one of the most recognised one. This website provides an international list of individuals lodging, from a villa to a sofa, everywhere around the world. It is a serious competitor of the hospitality industry and in some countries, legal conflicts are opposing them. Airbnb could not have become what it is now without the emergence of internet. Their competitive advantage was their product: untraditional lodging by the inhabitants. But their relation to IT was also one of the reasons of their success: at the beginning, their online presence allowed travellers from all over the world to book different lodging when and where they wanted, contrarily to traditional hotels which were not at this step of development. The hospitality industry catches up thanks to Online Travel Agencies like Booking or Expedia.
Hospitality is not the only sector concerned by the online sharing economy growth. For example, Shutterbee is a website where people can create travel books, where they record their travel tips, recommendations about destinations… This site, like traveller’s blogs or Facebook pages and groups could have endangered Destination Marketing Organizations which were relying more on bureau and brochures than on the emerging internet. But at last they became an example for the DMO which are now most of the time active on Social Media, with complete websites, like Visit Norway or 100% pure New Zealand. They actually took advantages of both sharing economy and IT by involving visitors and locals in the development of the destination. 
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(© Nightswapping blog)
 We assume that what made the success of sharing economy companies may be that they were the first to understand the capital place of IT in consumers’ lives. While traditional tourism companies continued to work as before with premises, providing information through brochures, phone and writing booking, others understood that IT may be the future of business and they launched their concepts with the help of IT. When they became successful, the competition understood that it was time to evolve and join the internet revolution but the sharing-economy was already 3 steps ahead. The apparition of new competitors of another kind seems to have revolutionized the market by endangering traditional tourism industries and thus encouraging them to change their way of doing business.
Sharing economy seems to cause some dangers in matters of security, certifications, leaks of taxes, job uncertainty, lack of qualification… But it is sure that coupled to IT it had an impact on the travellers’ lives and on the whole sector. Thirty years ago, no one would have thought we would organize our holidays through a machine, paying with our credit card without talking to anyone during the process, going to holiday by a car belonging to a stranger, and sleeping in someone else’s bed!
So how do you see the travel industry in 30 years?

Emilie Mika and Agnès Trucco

Sources :

Saturday, 30 January 2016

The Impact of Sharing Economy on Events


The Sharing Economy is a socio-economic ecosystem with the goal to maximize economy efficiency and resource utilization. It includes creation sharing, distribution, and production of commodity and services by different people or companies, such as Airbnb and Uber, the applications to provide private accommodation or rides services through the Internet, which are the two most frequently used ‘sharing economies’ in our daily life. And today, more and more event-related services like Liquidspace are emerging. There is no doubt that technology has changed every aspect of the event industry.



Concerning the positive impact on event, the more effective and efficient utilization of available resources are the main one. These services are all about linking people who have surplus goods to those who can make use of them. Such as Showslice, they provide a platform for organizers of sizeable events to use the existing services more efficiently and save more money. In the smart phone age, these services seem like a nature trend in the world: wider connectivity of the Internet and lower cost transaction.

Moreover, the increasing lower event budget has attracted many smaller events. Compare to the past, more and more convenient and efficient services have greatly assisted the planning, production, execution, and follow-through in events. If we need some Service Traiteur, just download an app like TaskRabbit.

It also creates economic opportunities for the people who provide services. This kind of advantage is more like a chain reaction, more and more events are being held with growth job opportunities like rental of premises, event Companies’ turnover etc. will be increased.

However, this sharing economy trend also brings negative influence on event industry. Firstly, the sharing knowledge have led some threats to events. With the acceleration of Internet, there have been a great number of online conferences content according people’s requests and social trend on some of the video platforms. Forturnately, this kind of conferences are still under development, but this must would be a big shock to the actual conferences in the future. In addition, there are still many a payable educatinal websides for the event planners, but as the source of the knowledge is unknown, which is difficult to guarantee the quality or may lead misleading.

Secondly, share economy has impacted the conventianal rules. Traditionally, event or event service company must get the licenses from the government and pay the tax every month, however, for the sharing economy suppliers, as most of them are individuals whose identities are unknow, it is hard to address the tax and liscensing rules on them which are unfair to the traditional event or event service companies. Additionally, it is difficult to ensure the unkown supplies is liable or not, which may probably bring safefy problems or uncertainty insolvability.

In conclusion, with the development of sharing economy, not only does it diversify people’s earning ways, but also has brought many a convenience to the event industry like more services choices, making use of the surplus goods in order to save more money etc. Nevertheless, where there is  an opportunity, there is a threat, facing the online conference content’s shock, traditional event companies could start to creat the virtual value to their customers like online educational forum etc. What’s more, for the sake of sharing economy’s promising future, in my opinion, government ought to set up some specific rules to trackle the tax and liscensing rules to regulate suppliers’ behavior and products or services’ quality.

Pulin CHEN
Huishan LI

Sources:
http://www.thepeoplewhoshare.com/blog/what-is-the-sharing-economy/
http://www.bizbash.com/the-evolution-of-event-technology-what-has-changed-since-2000/new-york/story/30253#.VqPv6Eu6T1o
http://www.eventmanagerblog.com/sharing-economy
http://www.eventmanagerblog.com/sharing-economy-events