The Six Scenarios for Hotels to Address the Collaborative Economy
08/01/2013|1:20:15 PM|

The industry is abuzz from the NYT article by Tom Friedman blessing the sharing revolution, his closing line states; “The sharing economy  — watch this space. This is powerful.” In this piece, Tom cited Airbnb starting to eat away at market share, and compares this rapidly growing startup to other giant hotels, like Hilton. I’ve been conducting research on how corporations can be involved in this new revolution, called the Collaborative Economy, and see some business opportunities.

[The Collaborative Economy is an economic model of shared ownership and access between people, startups, and corporations all working together]

For most large corporations and established institutions, the natural reaction to an invader is to fight them. For hotels, they’ve continued to fund lobbyists who support the established hospitality industry, and are fighting Airbnb at every guest room, house, and city around the globe. I’m here to tell you that hotels like IHG, Marriott, Hyatt, Hilton, Starwood and others don’t have to fight this inevitable movement. Instead they can collaborate with this market and profit. How? They can provide by adding new value added services, take a cut from the transaction costs, and reduce operating expenses.

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