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Innovation and entrepreneurship have disrupted traditional business models through the introduction of the “sharing economy,” led by the immense and rapid growth of brands such Uber, Grab, and Didi. The sharing economy has also had an impact on the accommodation industry – specifically, the short-term rental sector – with new and existing players changing the landscape and bringing benefits to many participants. But change does not come without complications. Despite an increase in supply and demand for non-hotel accommodations, this industry is facing many hurdles, including new regulations, as governments work to catch up with the technology advances that are enabling the sector’s rapid growth.
According to PwC, five key sectors of sharing economy, including accommodation, are growing at a compound rate of 30% per year. PWC sees short-term rentals growing ten times as fast as the traditional rental economy. Agoda Outside argues that it is time for all industry stakeholders – guests, hosts, communities, and governments – to work collaboratively, to find ways in which each can benefit from the changes that are taking place. Find out more by downloading this edition of the VE Bulletin.
