Impact of Sharing Economy to the Sustainability of Global Hotel Industry

Abstract

Sharing economy is an emerging economic model which is also known to be peer-to-peer rental market. In this model, the asset of an individual is open to be leased or used by another individual (Miller, 2015). One of the known providers of this service is AirBnB. It is an application that started in 2008 and serves as a bridge to the owner of a property to have his property leased by another for a period and price. AirBnB deemed to affect and reduce the revenues of some large hotels. In 2015, the bookings of AirBnB are expected to reach 80 million rooms worldwide. This means that the global hotel industry will lose this number of bookings in the same year (Sommerville, 2015). Indications of its impact are also felt among hotels on other parts of the United States and in Asia. In determining the corporate sustainability of large hotels, the integrated sustainability framework which reflects the management strategies, governance participants, shareholder value creation, social and environmental responsibility was considered (Rezaee, 2017). This paper reviews the studies conducted and related articles written that described the impact of the users of sharing economy model to the hotel industry globally. This paper also includes some challenges of the traditional hospitality provides and sharing economy model, particularly AirBnB.