Recently, there has been a dramatic change in the trends in the hospitality industry that is disrupting the traditional tourism and hospitality industries — the sharing economy. There has been a noticeable increase in services like Airbnb, Uber, Lyft, etc., that are changing the way people are booking and interacting with accommodations, transportation and almost every other aspect of trip planning. What does that mean for the hospitality industry? It’s time to make sure your guests’ experiences and your customer service is unparalleled.
What is the Sharing Economy?
In its most basic sense, the sharing economy is a model that allows individuals to borrow or rent something owned by someone else. The most well-known example currently is Airbnb, in which people are able to pay for short-term accommodation (private room, shared space or the whole residence) in a privately owned property.
Impact of the Sharing Economy on Ontario Hotels
Right now, the actual impact on revenue has been minimal. A recent report found that for every 1% increase in listings on Airbnb there is only about a 0.05% decrease in quarterly hotel revenue.* But that doesn’t mean you should be turning a blind eye to the sharing economy services that are popping up — after all, Airbnb did have a valuation of $10 billion and revenue of $250 million last year.** And while a 0.05% decrease may seem negligible, consider what that will add up to as Airbnb continues to grow in popularity year after year. For perspective, at its current rate of expansion, Airbnb can and will surpass major international hotel chains.
What can Ontario Hoteliers do?
The growing interest in the sharing economy creates a necessity for hoteliers to get creative and differentiate their services and offerings. Travelers who are using Airbnb to book their accommodations aren’t just looking for lower rates, they are seeking out unique experiences that chain hotels just can’t offer. As an independent, boutique hotel, however, you can make changes to address the changing needs and wants of your customers.
Remember why you got into the business in the first place — to provide excellent hospitality and service to your guests. The best way to make your guests happy is to ensure your employees have a solid footing in the art of customer service, personalizing it in a way that makes your visitors want to return and to tell everyone they know about the guest experience they had in your hotel.
The best way to exist in an industry that is being affected by the sharing economy is to be great. Give your guests an excellent experience, from their room to throughout the entire property. Make your lobby a social gathering place, treat your guests like old friends and give them the unique experience they are looking for.
