The Sharing Economy: Strengths and weaknesses of a ... · The Sharing Economy: Strengths and weaknesses of a megatrend from the customer's point of view - an exclusive empirical survey

The Sharing Economy: Strengths and weaknesses of a megatrend from

the customer's point of view

– an exclusive empirical survey by ITB and Worms University of Applied Sciences –

Prof. Dr. Roland Conrady

Director of the ITB Berlin Convention President of the German Society of Tourism Research (DGT e.V.) Worms

University of Applied Sciences

ITB Berlin Convention 2015 6 March 2015

The Sharing Economy: Strengths and weaknesses of a megatrend from the customer's point of view - an exclusive empirical survey by ITB and Worms University of Applied Sciences, ITB Berlin Convention, 6 March 2015

Background

"Sharing": a social megatrend and the focus of the ITB Convention 2015

Crucial role played by booking platforms for private accommodation

Terminology not yet defined: co-consumption, share economy, sharing economy, etc

Different results of empirical surveys of the degree of familiarity with sharing economy offers, depending upon the search term used and the explanation of the subject

Highlights of other empirical surveys:

Spiegel.de and GfK: "Germans don't share"

Bitkom: "On-line platforms for booking private accommodation have great

potential"

Consumer requirements, attitudes and intended uses in Germany not yet comprehensively researched: impetus for completion of this survey

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Survey profile

Empirical survey by the ITB and Worms University of Applied Sciences, Department of Tourism and Travel Management, in cooperation with stern.de

Author Annkathrin Schmitt

Supervisor Prof. Dr. Roland Conrady Purpose Research into consumer requirements, attitudes and intended uses of private accommodation for private and business travel

Type of survey On-line survey of stern.de users

Survey period 22.01. – 09.02.2015 Size of the sample 1,097 internet users

- Gender 66.1% female and 33.9% male

- Age 44.8 % aged between 14 and 29 years - Net monthly household income 37.4 % below €2,000 - Economic activity 65% in employment

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Airbnb is the best-known booking platform for private accommodation

Airbnb, Wimdu and 9flats are the best-known platforms, at 92.3%, 44.8% and 24.9% respectively (aided awareness)

Out of 10.4% further nominations, Couchsurfing and fewo.de are familiar, scoring 30.8% and 23.4% respectively (unaided awareness)

Which websites for booking private accommodation do you know?

10,4%

24,9%

44,8%

92,3%

n = 1,031

Of which 30.8% named "Couchsurfing.com" in the free text field. 23.4% named "fewo.de".

Airbnb

Wimdu

9flats

Others

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Heavy use of private accommodation by the respondents According to a Bitkom survey in July 2014, 5% of the entire population have used

private accommodation booking sites

73.8% of the respondents to this ITB/Worms University of Applied Sciences survey have already used private accommodation booking sites

Have you ever booked accommodation on a private accommodation booking website such as Airbnb, Wimdu or 9flats?

Compared to representative surveys, the sample in this case consists of (experienced) users

High level of knowledge of the respondents

High significance of the strengths and weaknesses of private accommodation

26,2%

73,8%

n = 1,031

(Experienced) users

Yes

No

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Have you ever booked accommodation on a private accommodation booking website such as Airbnb, Wimdu or 9flats? n = 1,031 - analysis by sociodemographic indicators

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Compared to non-users, users tend to be

... older

... employed

... earn a higher income

... married/in a partnership


High proportion of occasional users

71% of the individuals surveyed have only booked private accommodation once or twice in the past 12 months

How many bookings did you make there in the last twelve months?

0,7%

1,1%

5,1%

22,2%

71,0%

n = 761

1 or 2 bookings

3 to 5 bookings

6 to 10 bookings

11 to 19 bookings

More than 20 bookings

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Private accommodation is predominantly used for private travel

89.9% of respondents booked private accommodation for private travel

10.1% have also used private accommodation for business travel

Did you make your bookings predominantly for private or business

travel?

2,2%

7,9%

89,9%

10.1% (77 respondents)

n = 761

Predominantly private

Both

Predominantly business

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Very positive attitude to private accommodation: better price/performance ratio, higher feel-good factor, hotel services are dispensable

To what extent do you agree/disagree with the following statements on private accommodation?

Offers of this type are an ideal way of saving money when travelling

The price/performance ratio of private accommodation is considerably better

Private homes are much more pleasant than hotel rooms

I find the variety of private accommodation on offer more satisfactory than alternative hotel offers

I have used such offers frequently and enjoyed them

I would have concerns about the process, cleanliness and payment

I would never want to do without hotel services

I believe the subject only represents a temporary trend 87.8%

72.6%

66.8%

33.9%

23.6%

20.7%

12.4%

7.5%

7,4%

25,0%

31,2%

56,0%

67,7%

74,3%

79,7%

90,0%

n = 1,031

*"Don't know" answers ignored

Agree

Don‘t agree

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High level of confidence in booking and payment processes, local security and private accommodation hosts

Over 80% of respondents expressed confidence in multiple respects

The greatest lack of confidence was in hosts, at 19.1%.

Particular aspect of confidence:

With which of the following statements do you agree/disagree?

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-11,5%

-14,1%

-15,9%

-19,1%

88,5%

85,9%

84,1%

80,9%

n = 1,031

Don´t agree Agree

I have confidence in the hosts in question

I have confidence in local security

I have confidence in

the payment process I have confidence in the booking process


Assessments by other guests are very important for private accommodation

1.1%

3.1%

16.5%

31.0%

48.3%

0.8%

4.8%

40.4%

54.0%

n = 1,031

n = 1,021

What is the significance of assessments by other guests in relation to your booking behaviour?

How do you personally rate the value of customer review sites?

Source: Customer reviews: crucial to making a purchase, credible, strategically relevant? An empirical survey by ITB and Worms University of Applied Sciences, ITB Berlin Convention 2014 7 March 2014

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Very high significance

High significance

Minor significance

No significance

Important, but must be used with care

Very important

Indispensable for booking

Not important

I don't get information from websites


Location, hygiene/cleanliness and price-performance ratio as dominant crucial factors

How important are the following criteria to you when booking private accommodation?

57,2%

60,1%

62,2%

65.5%

72.6%

81.6%

83,6%

90,6%

96,3%

98,7%

98,8%

n = 1,031

Possible answers "important" and "fairly

important“

Location

Hygiene and cleanliness

Price-performance ratio

Local security

Own bathroom

Local entertainment

Insurance for damage claims

Eclectic tourism offer

Sustainability

Services

Booking and cancellation conditions

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Insider tips from locals are more important than services: personal contacts, cultural experience and wi-fi are often required

76.0% and 55.2% want tips for leisure and restaurant recommendations

Typical hotel services are hardly wanted

7,8%

13,7%

14,1%

22,4%

24,1%

25,4%

41,4%

55,2%

76,0% n = 1,031

Most frequent answers from the free text field: "Getting to know the landlord - their culture", "Individual tips from hosts" Personal contact "Wi-Fi" Extras (bottled water, shower gel, etc)

Which of the following services would be desirable for you when booking private accommodation?

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Leisure tips

Restaurant recommendations

Bicycle available

Breakfast

Airport transfer

Fridge full on arrival

Individual guided tour

Daily cleaning

Other


High customer potential for private accommodation in future, very small proportion of "hotel fans"

91.8% consider private accommodation under certain circumstances

Only 8.2% have a distinct preference for hotels

How do you consider your future use of private accommodation?

8,2%

9,9%

19,6%

62,3%

n = 1,031

Smart shoppers: I choose a hotel or private accommodation depending on the circumstances

Sharing fans: I shall give preference to websites for private accommodation

Hotel fans: I shall give preference to staying in hotels

Bargain hunters: I shall usually take the cheaper offer in future

Smart shoppers

Sharing fans

Bargain hunters

Hotel fans

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The potential of former non-users can be largely identified in future. Users have been lost as reliable hotel customers.

77.4% of those who have not yet used a booking site for private accommodation do not rule it out in future

Only 3.2 % of users will give preference to staying in a hotel in future

How do you consider your future use of private accommodation?

Non-users (n = 270) compared to users (n = 761)

5,2%

12,2%

22,6%

60,0%

n = 270

I choose a hotel or private accommodation depending on

the circumstances

I shall give preference to staying in hotels

I shall usually take the cheaper offer in future

I shall give preference to using websites for private

accommodation

Smart shoppers

Hotel fans

Bargain hunters

Sharing fans 3,2%

9,1%

24,7%

63,1%

n = 761

I choose a hotel or private accommodation depending on

the circumstances

I shall give preference to websites for private

accommodation

I shall usually take the cheaper offer in future

I shall give preference to staying in hotels

Smart shoppers

Sharing fans

Bargain hunters

Hotel fans

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Potential current non-users can be identified by suitable measures

31.4% have not yet found a suitable offer

Hotel services are only important to 13.7%

Why have you not yet used a private accommodation booking website?

Not yet considered it

Not yet found a suitable offer

Uncertainty about liability

Mistrust of the administrative process

Mistrust of booking websites

Low standards of hygiene

Lack of privacy

Hotel services are important to me

Possibly no local contact in emergencies

Other

Lack of safety standards 11,4%

12,9%

13,7%

13,7%

14,0%

15,9%

15,9%

19,2%

24,4%

31,4%

39,1%

n = 270 (Respondents who have not yet used a booking website)

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Private accommodation will continue to be used predominantly for private travel in future

76.5% of respondents would like to book private accommodation for private travel only

13.6% have also used private accommodation for business travel

For which types of travel would you book private accommodation in future?

13,6%

76,5%

Other types of travel have not been considered here.

n = 946 (Respondents who stated an intention to use private accommodation in response to question 8)

Private travel only

For business travel too

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For which types of travel would you book private accommodation in future? n = 946 - analysis by sociodemographic indicators -

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Readiness to use private accommodation for business travel pronounced for ...

... males

... middle aged

... with a higher income


Private accommodation appears particularly suitable for short breaks, city breaks and foreign trips in future

77.6% would use private accommodation for short breaks in future

80.5% would use private accommodation for city breaks in future

64.6% would use private accommodation for foreign trips in future

For which types of travel would you book private accommodation in future?

(More than one may be named)

50,3%

64,6%

80,5%

50,4%

77,6%

13,6%

89,9%


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Private travel

Business travel

Shorter trips (2 to 4 days)

Longer trips (from 5 days)

City breaks

Foreign travel

Domestic travel


Private accommodation offers a good opportunity to reduce future travel expenditure

85.3% of those using private accommodation in future intend to use it to cut travel costs

Respondents with a higher household income also intend to cut travel costs by using private accommodation

Do you intend to cut future travel costs by using private accommodation offers such as Airbnb?

0,5%

4,7%

36,6%

48,7%

n = 946

Don't yet know: 9.5%

Probably

Definitely

Unlikely

Definitely not

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"Hotel fans" have a lot of concerns about private accommodation and do not want to do without hotel services

Why will you give preference to hotel bookings over bookings in private accommodation in future?

Hotel services are important to me

Low standards of hygiene

Uncertainty about liability

Lack of privacy

Mistrust of the administrative process

Inadequate safety standards

Possibly no local contact in emergencies

Mistrust of booking websites

Awkward to reach the booking agent if something goes wrong.

Bad experience in the past

Other 8,2%

17,6%

28,2%

29,4%

30,6%

30,6%

37,6%

43,5%

45,9%

49,4%

60,0%


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The greater the use of private accommodation, the greater the readiness to rent out one's own home

61.5% of frequent users would also rent out their own home

Only 22% of non-users would rent out their own home

Would you rent out your own home to travellers?

No 73.0%

No 66.4%

No 55.0%

No 38.5%

Yes 20.0%

Yes 24.9%

Yes 38.5%

Yes 61.5%

n = 1,031

*Number of bookings in the last 12 months (question 4)

Frequent users (from 6)*

Occasional users (3 to 5)*

Infrequent users (1 to 2)*

Non-users

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Conclusion Private accommodation is predominantly booked for private travel

Highly positive attitude to private accommodation: better price/performance ratio, higher feel-good factor, hotel services are dispensable

High level of confidence in booking and payment processes, local security and private accommodation hosts

Location, hygiene/cleanliness and price-performance ratio as dominant decisive factors

Insider tips from locals are more important than services: personal contacts, cultural experience and wi-fi are often required

The potential of existing non-users can be largely identified in future. Users have been lost as reliable hotel customers

Private accommodation appears particularly suitable for private travel, shorter trips, city breaks and foreign travel and for cutting travel expenses

The greater the use of private accommodation, the greater the readiness to rent out one's own home

Bad experiences with private accommodation not discernible; anyone who has done it once can't give it up.

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Thank you very much for your attention!

Prof. Dr. Roland Conrady

Director of the ITB Berlin Convention/ President of the German Society of Tourism Research (DGT e.V.) Worms University of Applied Sciences, Department of Tourism and Travel Management Mobile: +49 (0)172-2708660 E-mail: [email protected]

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Documents

The Sharing Economy: Strengths and weaknesses of a ... · The Sharing Economy: Strengths and weaknesses of a megatrend from the customer's point of view - an exclusive empirical survey