Critical Analysis
Threat to Hotel Industry
Martin-Rios. C (2015) mentions about an interesting question brought out by Professor Sekulic “ Will Hotel rooms share the fate of CDs and DVDs?”, which obviously is in relation to the threat for hotel industry from Collaborative consumption companies like Airbnb who are in the business of aggregating rooms under an online bed-sharing concept. The hotel industry has yet to come to terms with the awareness as to how much customers especially the millennial are able to value the options available through Airbnb website. Most hoteliers are easily calling it a budget offering and being too inconsistent, possibly to be shunned by the guests who are used to staying at upscale hotels, however the confidence for hotel chains like Accor's is their business model is very different from that of Airbnb, nevertheless it is still important to analyze the development of these businesses (Martin-Rios. C, 2015).
The innovative strategy of Airbnb is not just to offer low-cost holidays, even though it is one major segment catering to the last minute budget holidayers looking to spend less on rooms and saving …show more content…
The service needs to be sensitive to the needs and expectations of the guest and imbibe the warmth displayed by the hosts of the Airbnb listing. There is technology advancement which is crucial to compete with however other way to counter the disruption is for hotels to innovate by embracing non-technological innovation, relooking at what it has to offer, redesign its work structures, and break rules around workforce needs, talent management and focus on forging new partnership (Martin-Rios. C.,
Threat to Hotel Industry
Martin-Rios. C (2015) mentions about an interesting question brought out by Professor Sekulic “ Will Hotel rooms share the fate of CDs and DVDs?”, which obviously is in relation to the threat for hotel industry from Collaborative consumption companies like Airbnb who are in the business of aggregating rooms under an online bed-sharing concept. The hotel industry has yet to come to terms with the awareness as to how much customers especially the millennial are able to value the options available through Airbnb website. Most hoteliers are easily calling it a budget offering and being too inconsistent, possibly to be shunned by the guests who are used to staying at upscale hotels, however the confidence for hotel chains like Accor's is their business model is very different from that of Airbnb, nevertheless it is still important to analyze the development of these businesses (Martin-Rios. C, 2015).
The innovative strategy of Airbnb is not just to offer low-cost holidays, even though it is one major segment catering to the last minute budget holidayers looking to spend less on rooms and saving …show more content…
The service needs to be sensitive to the needs and expectations of the guest and imbibe the warmth displayed by the hosts of the Airbnb listing. There is technology advancement which is crucial to compete with however other way to counter the disruption is for hotels to innovate by embracing non-technological innovation, relooking at what it has to offer, redesign its work structures, and break rules around workforce needs, talent management and focus on forging new partnership (Martin-Rios. C.,