Accommodation is only a part in hospitality and is one of the largest in the industry. A fast-growing industry that offers revenue opportunities from holidaymakers to executives in business trips. It is also an industry which will continue to innovate as disruptive business models come to life.Technology has disrupted the tourism industry like many others. Much of its changes were due to services like Airbnb. A company created in 2017 by Brian Chesky and Joe Gebbie, and a great example of a success in digital transformation. Such creation supplies the demand for bookings in any category, allowing Airbnb to grow their user base and serve millions of customers.
Flexibility for customers and an opportunity for residents with extra space to gain a secondary income is one of many ways a single company disrupted the industry. From a different user experience, purchasing a product and service that was not available to additional business opportunities for individuals who were not part of the chain. We have always been holidaymakers, but we can now be the provider.
The Airbnb brand was built based on good experiences, like most businesses it relies on good reviews for its success.
By making sure the experience of both customers and hosts was as seamless as possible Airbnb was able to not only achieve disruption success as a business, but also a successful outcome for all parties involved.
Traditional Businesses Response
Instead of competing by adapting and implementing new business models, traditional business are optimizing what was originally offered with premium services. Hotels have high overheads and cannot simply reduce its prices to regain market share. Price often corresponds to the service provided, because of that, such businesses are innovating in other ways. From booking the stay and ordering room service, to external activities can now happen via apps. Hotels have realised this is a crucial necessity which also brings new customer experiences.