There’s an Airbnb for that!

No matter what you’re travelling for, and how you want to stay, the sharing economy has a platform just right for you

From the past few years sharing economy has impacted consumer’s habits. The technology has encouraged exchanges between people by making an accessible open market place. An increasing number of applications, start-ups is created which makes it now easier for people to rent or use items to each other in a simple click.

In the hospitality industry Airbnb is considered as the leader and the most recognizable example of the phenomenon. When planning a holiday people are no longer saying “I’m looking for a hotel” but “I’m getting an Airbnb”. Travelers are looking for other experiences than staying in a simple hotel, they now want customization, local advices and tips from where they are staying. Several platforms followed the same trends as Airbnb and became more specialized. Travelers can now choose to rent a place regarding their preferences and needs (family situation, prices, services etc.)

Misterbnb

This new platform created by a French firm has been running since 2013. This start-up is an Airbnb alternative targeting gay men. It offers exactly the same services as Airbnb; you can book a room/ home from an individual, they provide mini-guides and maps except that it’s only for gay travelers. The main objectives is that travelers can live the gay experience by feeling safe and comfortable in another city. The idea came up to Matthieu, misterbnb co-founder & CEO after booking an apartment in Barcelona with his partner. Their host was uncomfortable in front of them and even asked “Are you going to sleep in the same bed?” Misterbnb was then created to provide a gay friendly experience where gay men can connect and expand their sense of community.

 

Kid & Coe

This platform is entirely dedicated to kids. Travelers can find their next destination according to their kids’ needs and preferences. Families can find homes to rent very nicely decorated, and equipped with an optimal design for children and babies. You don’t need to worry anymore, homes are fully furnished with toys, books, highchairs, and trusted nanny numbers. Moreover travelers can find a set of activities for kids (large gardens, sand etc.) close to their house.

Those two platforms are good examples to new trends in the hospitality industry especially in the sharing economy. They demonstrate that every day, people are more specific on what they are looking for. Hotels needs to be careful and adapt themselves to attract the generation 2.0.

Camille & Anthony

Sources:

http://www.cntraveller.in/story/there-s-airbnb/

http://tech.co/digital-hyperlocal-stay-local-travel-2015-08

http://www.tnooz.com/article/misterbnb-the-airbnb-clone-for-gay-men-raises-2-million/

Sharing economy meets legal, regulatory and cultural restrictions in Japan

For February’s post, we have chosen a very interesting article that deals with the subject of sharing economy, titled “Japan Slowly Opens Door to Sharing Economy” retrieved from The Wall Street Journal.

This article highlights two components of the sharing economy namely home-sharing and ride-sharing within the context of the Japanese culture.

Home-sharing in Japan

source: Free Digital Photos

The authors, Alexander Martin and Eric Pfanner, report the story of Teruko Neriki one of the few people opening its house to Airbnb guests. She says see gives strict instructions to its guests in order for them to avoid trouble with the neighbors.

As stated in the article, “the idea of finding a home cleaner or nanny online remains alien in a society that places a premium on privacy”. In addition, Japanese that are not in favor of home-sharing explain their point of view by saying that it disturbs serenity in residential areas and threatens their security.

But Japan hotels capacity is tightening. According to a recent article from The Japan Times, Japan average room occupancy ratio in 2015 amounted to 78%, 83% in Tokyo and 87% in Osaka. To compare, Paris average room occupancy ratio in 2015 amounted to 63.7% (source: parisinfo.com). According to The Japan Times, “The number of visitors to Japan in 2015 is estimated to have topped 19 million, an increase of nearly 50 percent from 2014.”

This shortage of accommodation may translate into a loss of income for the Japanese economy if they do not increase their offer. Therefore, the Japanese government has decided to ease restrictions on home-sharing.

Ride-sharing in Japan

As for ride sharing, it is banned in Japan as it is not possible to offer driving services without a taxi license. The authors cite the words of the chairman of taxi company Nihon Kotsu Co. and the Tokyo Hire-Taxi Association that say that “there is no need for Uber in Japan because taxis are abundant, convenient and competitively priced.”

source: Free Digital Photos

We would like to discuss two issues that have been raised in this article: cultural differences when exporting a successful concept and shortage of hotel accommodation in big cities.

Cultural differences when exporting a successful concept abroad

The difficult implementation of Uber and Airbnb in Japan can be linked to several successful American Businesses that have failed overseas because of a lack of cultural adaptation. For example Starbucks performed poorly in Australia because people prefer to drink their coffee in local stores. And Walmart did not succeed in South Korea because it has failed to identify Koreans preference for small packages.

It appears to us that businesses looking to exploit the huge potential of new markets may need to adapt their concept in order to remain successful. Cultural difference is a very important dimension to take into account.

Shortage of hotel accommodation in big cities

Japan is not the only country suffering from hotel-accommodation shortage. In 2014, a report anticipating inbound tourism growth in Ireland advised to increase accommodation capacity by up to two thirds (source: Irish Examiner).

On the other hand, it is interesting to see that a city like Brisbane which was formerly facing shortage of hotel accommodation, now has to cope with supply excess (source: The Courier Mail).

Additionally, we think that this issue can be linked to hotel construction in cities hosting mega events such as Olympic Games and FIFA World Cups. For example, 46 large top hotels have been built in Brazil to cope with the upcoming flow of tourists (source: Top Hotel Projects). We can wonder if these hotels construction will still be relevant once the FIFA World Cup is over.

Lise Cimbolini 
& Trung Duc Nguyen