LONDON – WTM 2014 – REPORT: The so-called "peer-to-peer" or "sharing" economy is starting to have a negative impact on the traditional travel and tourism industry reveals the World Travel Market Industry Report 2014 released yesterday.
LONDON – WTM 2014 – REPORT: The annual global survey of World Travel Market exhibitors and buyers found that nearly one-in-five (19%) of those polled admitted their business had been affected by the emergence of peer-to-peer web sites.
Furthermore, the effect of these sites on established businesses has been overwhelmingly negative, with 78% expressing concern about how peer-to-peer sites were impacting their business.
Accommodation sites in particular are gaining traction with UK consumers, the report also found. Nearly one-in-ten (9%) of UK holidaymakers have used a site “such as Airbnb, OneFineStay, Couchsurfing and Flipkey” to book accommodation.
Satisfaction levels are high, with 86% likely to use them again.
However, the sector is not without its critics. Airbnb has faced criticism over health and safety checks, local and corporate taxes and its role in mediating when disputes arise between hosts and guests.
Uber, a ridesharing service which includes private vehicles, has prompted protests across the world from licensed taxi operators.
Airbnb is rumoured to be worth $10 billion while Uber is available via Sabre Holding‘s business travel app Tripcase. But other businesses in the sector are feeling the pressure. HouseTrip, which was founded in 2009, has recently announced plans to restructure resulting in a number of role redundancies.
ABTA chairman Noel Josephides compared the peer-to-peer sector with the black economy at the recent ABTA Travel Convention.
Even the UK government has an opinion on peer-to-peer. The Department for Business, Innovation & Skills is launching an independent review of the sharing economy after a PwC study this August found that it could be worth £9bn to the UK by 2025.
Elsewhere, the WTM Global Trends Report 2014 in association with Euromonitor International identified peer-to-peer dining a key trend within Europe.
World Travel Market, Senior Director, Simon Press said: “These findings are a real eye-opener. Nearly one in ten of British travellers have already used a peer-to-peer site to book accommodation and are likely to do so again. Those businesses around the globe which are competing with peer-to-peer need to have a strategy in place.
“World Travel Market is the leading global event for the travel industry and this is a trend we will be keeping an eye on. The industry needs to welcome peer-to-peer in order to understand them better and find ways to compete or co-operate.”
World Travel Market, Senior Director, Simon Press.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
