The History of Shared Economies Peer to Peer Lending/Trading Shared Economies in the Internet Age...

Oliver NabavianENGW 3304Prof. Richard

The Internet Shared EconomyHow Airbnb and the Hotel Industry Can Coexist

The History of Shared Economies

• Peer to Peer Lending/Trading• Shared Economies in the Internet Age• Collaborative Consumption (CC’s)• Example: Groupon

• Hamari’s 4 Factors to successful CC’s

Airbnb Enters the Market

• Short Term Rentals in over 190 Countries • Over 25 Million Rentals so far• Making Apartment Sharing Safe• Rating System• A new way to travel

Airbnb vs. Hotels: A Texas Study

• Boston University Case study on Texas• Hotel Revenue dropped .35% for 10% growth in Airbnb • Uneven hit to hotels• Findings show small affect to large national chains

The Hotel Industry Reacts

• Price Drops in New York City January 2015• Revenue available per room (revpar) dropped 18.6% YtY

• Primarily due to the rise of Airbnb and short-term rentals• Hotels advertise stability

Airbnb: Ethics and Legality

• 75% of NYC listings illegal• Confusing terms & Conditions help Airbnb

The Change That Needs to Happen

• New Markets emerging, laws need to adapt• Airbnb and Hotel industry are complementary• Marriott CEO Arne Sorenson: Not worried• Propose new NYC Law• Be the model of needed change

The Results

• Citizens win• Renters are protected• Everyone is on the same playing field

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