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The Sharing Economy: Why are people abandoning hotel bookings?

The Sharing Economy — a system of economics in which products or services are shared between people. The Sharing Economy is built on collaboration, participation and innovation. It is an economy in which more is shared and less is owned. It is flourishing, as embodied by the outstanding success of platforms such as Airtasker and Uber, driven by the value of unique experiences and authenticity, and made possible by technologies that are available to almost everyone.

Growing segments of society are turning to online marketplace Airbnb in lieu of the traditional, polished hotel. Generally, Airbnb users are tech-savvy travellers looking to settle in to a comfortable home with a host who could offer them the knowledge of a local — though the personality of the average traveller, and the average host, is difficult to pinpoint. The value of these lodgings lie in their diversity, as locals from all walks of life open their homes to travellers from all walks of life, effectively bypassing the ‘manufactured’ environment of a hotel setting. A search through Airbnb listings in any travel hot-spots will likely bring up a multitude of unique spaces, from quiet homes in kid-friendly neighbourhoods to thrifty apartments in the midst of the most popular areas for thriving local nightlife.

But what does this mean for the future of the traditional hotel? About one in six Australian adults now have an Airbnb account, and this number will continue to rise as peer-to-peer service (the Sharing Economy) is normalised by a collaborative society. The ‘hotel experience’ has not, by any means, lost it’s value in such a way that regular hotels will become obsolete — there will, most likely, always be groups in society who value the ‘hotel experience’ — however, it is becoming increasingly obvious that the market of home-sharing via online platforms such as Airbnb will stay strong and pave the way for further innovation in the industry in future.

Increasing numbers of Australians are seeing the opportunity for financial return from their spare bedrooms, or from time away from home — embracing the sharing economy and taking on the rewarding experiences that come with Airbnb hosting. If you have a fantastic space to spare, why not join them?

We manage your Airbnb so you can manage other things. To learn more about our services, contact the HomeHost team at hello@homehost.com.au or call 1300 17 17 18.

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