Despite strong reports presenting a hike in Hotel occupancy since 2015, there is no doubt that the introduction of the sharing economy via Airbnb in 2008 has cast a sense of anxiety over the shaken, hotel utopia.
Why are the big players spooked?
Although the demographic that has complimented the sharing economy’s success is predominantly youth travellers, Airbnb has reported a recent influx of corporate and/or business travel (31 percent of travellers who used Airbnb in the last two years had used it for business purposes). Until now, hotels most consistent customer base.
Meanwhile, efforts to combat the sharing economy have been widely reported; such as Hiltons serviced apartment new-builds in London and Accord’s direct sharing economy investment in London based luxury rental site Onefinestay.
Hotels are conforming to the travel prediction that guests (inclusive of those travelling for business) are looking for a more personalised and authentic experience. Hotels are reimagining interior and decor; stepping away from the once stringent, recognisable colours and themes consistent throughout sites, and instead, moving towards original boutique-styled decor that reflects the local area in an effort to attract more guests.
In a nutshell, the sharing economy has forced the big chains to change behaviour and invest heavily. The accommodation sphere has rotated and a chase has ensued.
What about small hotels? What can they do?
What about independent hotels, small chains, resorts and the ever-popular boutique? Without the corporate stockpiles to subsidise investment, how can they keep up with the competition?
Fighting or chasing the sharing economy via investment is a big ask… The answer. Don’t fight ’em, join ’em.
But how? I hear you cry!
Meet in the middle…
Hotels need a marketplace that encompasses the elements of the sharing economies personalisation and social profiling with an easy-to-use, low commission platform.
Gomingo wants to bring hotels into the sharing economy, giving them the social profiling they need to stand out as a professional, trusted host, teamed with an easy-to-use front desk solution to accommodate all your hotelier admin needs.
We hand control back to hoteliers, Gomingo charges 15% commission and we won’t ask for more of their income for front page visibility. All they need to do is select a simple pre-set offer and their hotel will appear on our homepage. Leaving hoteliers in complete control of their rates and content.
In the holiday accommodation and travel market, competing against giants like Expedia and Booking (who have monopolised the market by buying other holiday rental companies), have left hosts no choice but to work under the non-flexible high host-fee options, as there is no alternative.
Gomingo is here to offer that alternative, which is cheaper for holiday rentals and inclusive of hotels big and small.
Joint founder of Gomingo, Neijus Mikiolatis summed up the companies mantra “We want to create a trusted marketplace for hotels and all other accommodation types. Within which, hosts have control of their rates, content and front-page visibility. While guests can roam free and with confidence snapping up great deals without any distractions of sub offers, urgency marketing or adverts.”
With Gomingo’s official launch imminent, the site already boasts over 250 hosts and 2500+ units contracted in just a few months. Our guests seem just as keen as we are for its success. Host Supinda said “I have just spoken to Nerijus, Director of Gomingo, and if they can achieve everything that they set out to achieve, they might bring the booking’s facility to another level both for host and guests. Wishing you great success.”
With big Hotels investing and technology platforms (like ourselves) supporting the inclusion of smaller chains and independents, what’s next?
We predict a media battle more than anything. The larger hotel chains and governments continue to attempt to impose sanctions on Airbnb, much similar to Uber’s recent cameos in the media debating regulations.
Although we can’t see any intervention disrupting the sharing economy’s growth, regulation is something that will affect any new digital platforms exchanging information, as alongside the growth of companies there is a growth in digital security risks. Definitely, something to keep an eye on in the future. Although we’ve predicted a saviour for that here
In terms of bridging the gap? Technology will be the answer! We predict more sharing economy sites with niches in luxury, hostels etc. will be popping up over the next few years. We would suggest being vigilant and only including yourself and indeed your hotel in ones you think will benefit your niche, bookings and indeed income.
Let us Know!
Are you a Hotel owner? What do you think about the impact of the sharing economy? Let us know in the comments below.
Make sure to sign up your hotel on Gomingo. We’re giving you 6 months commission free on all bookings so you can try us out and see what you think.
Help us bridge the gap between the sharing economy and big chains by joining our trusted marketplace and let’s succeed together.