The paper "Impact of Economy Sharing Platforms on the Hospitality Industry" is an outstanding example of management coursework. The impacts of new technological platforms on the business environment cannot be overestimated. Technology creates new ways of doing business that upsets the order of business models in the world by changing the modes of communication, movement, payments and associated costs. This particular study seeks to examine the impact of new technology-driven sharing economy platforms such as HomeAway, Roomorama, FlipKey and VRBO in the hospitality industry. The sharing economy platforms have been found to revolutionize operations in the industry through a variety of ways that influence the business operations in the industry.
According to McDonald (2015), the use of new economy sharing platforms such as HomeAway, FlipKey and Roomorama has had a great impact in the industry by influencing the nature of information relayed concerning tourist destinations, accommodation costs, currency rates, transport costs and provision of varieties. It is, therefore, important to examine the impact of the new economy sharing platforms to examine the mechanisms through which they impact the hospitality industry and analyze the response from the traditional hotels to this relatively new technology.
This study is further informed by the fact that “ many tourists use the internet, smartphones and tablets to plan or purchase travel” (EPRS, 2015). Purpose of the Study The purpose of this study is to examine the impact of new economy sharing platforms such as FlipKey, HomeAway, VRBO and Roomorama in the hospitality industry. In essence, the overriding objective is to ascertain how the adoption and use of these new platforms have altered operations and revenues in the hospitality industry and clearly isolate the means through which they have influenced such operations and revenues.
Moreover, this paper, in achieving the key objective stated above, will seek to analyze how traditional hotels have responded to the adoption of these economy sharing platforms in the hospitality industry. Achieving these objectives will necessitate this paper to undertake a critical review of literature materials in this discipline to augment from such studies, not only the impact of such technologies but the insights concerning their rational and their future prospects in the hospitality industry along with constructs such as increased use of internet and globalization.
In summary, the objectives of the study are: To examine the impact of new economy sharing platforms such as FlipKey, HomeAway, VRBO and Roomorama in the hospitality industry. To assess the response of traditional hotels to the adoption of economy sharing platforms in the hospitality industry To provide insights on how the efficacy of the economy sharing platforms can be enhanced. Significance of the Study By studying the impact of new economy sharing platforms such as FlipKey, HomeAway, VRBO and Roomorama in the hospitality industry will yield invaluable knowledge in the discipline given that previous studies have focused on the impact of a single platform, mostly Airbnb.
Additionally, by revealing the intensity and magnitude of change occasioned by the sharing platforms, the paper is likely to have a great practical impact on the decision-making organs of traditional hotels that are contemplating the adoption of these new technologies. Providing information concerning the impact of such technologies in the hospitality industry will make this paper a handbook for both hotel management and clients owing to the fact that “ most goods and services offered by the hospitality industry are experiential in nature, it is hard to predict their quality before the purchase” (Seth, 2012, p.