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What the sharing economy and travel will look like post-pandemic

Companies are slowly picking up the pace once again, thinking of innovative ways to cater to and attract travelers. After all, so much of the economy’s post-pandemic recovery relies on travel.

As borders around the world are reopening, there’s a continued upward surge for the travel industry along with the sectors that closely work with it. According to statistics from the UNTWO, most tourism professionals expect a 58% rebound in the third quarter of 2022. Still, many sectors, especially those belonging to the sharing economy, are still in the process of navigating the constantly fluctuating travel conditions and ever-changing customer needs. Here’s how the sharing economy is predicted to change as we transition to the post-pandemic era.

House renting
Airbnb, Vrbo, and HomeExchange are some of the most prominent accommodation platforms in the industry. They were also some of the hardest hit when the pandemic struck. CNBC notes that Airbnb layoffs accounted for 25% of its workforce, and was valued at nearly half of what the company was worth in 2017. Cancellations have hit many hosts hard, especially those whose income fully relied on bookings. Experts believe that many people may now favor traditional hotels over home-sharing because of the hygiene standards.

However, hosts are aware that people are itching to get out of their homes — a theory that was validated when Airbnb shares skyrocketed to 112% on its first day of trading on the public market. Some of them have begun offering lodging for long-term tenants at a lower price. Companies are teaming up as well to combat pandemic-related monetary and customer safety issues, while others are looking at possibilities of incorporating crypto and other new payment methods.

Rideshare apps
Rideshare apps have played central roles in hospitality, travel, and other utility purposes. An AskMoney report on rideshare apps highlights that Uber and Lyft have implemented various safety measures for both drivers and riders. However, social distancing protocols have limited options for joint travel, as options like Uber Pool and Lyft Line were made unavailable to the public. But now that vaccination rates continue to rise, rideshare revenues are slowly returning to normal.

Moreover, companies are also helping drivers to perform deliveries for food and other services, as it’s likely safer than carrying passengers. It’s also noteworthy that many rideshare drivers are reconsidering their career options after adjusting to new work-from-home routines. Because of this, there’s now a greater demand for better working hours and higher payouts, despite the fact that rideshare companies have already been charging customers higher fees during the pandemic.

Financial services
Financial technology (fintech) apps around the world, especially in the Asia Pacific, soared during the pandemic. More people turned to digital banking apps for loans, investments, traditional banking, and financial services. As highlighted in our travel, transportation, and hospitality feature written by Greg Abbott, high usage of digital banking and peer-to-peer (P2P) transactions are not only expected for item purchases but also for business in the travel industry. Travel businesses will integrate fintech apps and services and push to enhance user experience in this area.

Fintech brands like Revolt are innovating to include accommodation, travel, and transportation features to encourage more options with fewer actions. Hopper mobile app, on the other hand, uses predictive analytics to suggest the best times to buy tickets and make cancellations. Moreover, a study published in the Journal of Sustainable Finance & Investment has determined fintech P2P to become the most viable alternative credit option to borrowers. Many users have realized the accessibility of P2P lending and borrowing, especially in areas where traditional institution-to-individual lending is not an option.

Overall, companies are slowly picking up the pace once again, thinking of innovative ways to cater to and attract travelers. After all, so much of the economy’s post-pandemic recovery relies on travel.

Photo by Katya_Ershova from Pixabay

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