The shared space economy is going to make serious ripples in the accommodation business, a new report by Juniper Research says. Being cheaper and easier to book, providers such as Airbnb and WeWork will have their revenue jump from $2.3 billion in 2015, to $6.1 billion by 2019.
According to a new research paper by Juniper, entitled Sharing Economy: Opportunities, Impacts, and Disruptors 2016-2020, the sharing economy will see a huge expansion for a couple of reasons: no-nonsense booking, and financial rewards for property owners both included.
The report also says that this approach to accommodation does not fall under the same rules and regulations traditional establishments need to adhere, giving them a significant advantage.
Approximately six per cent of the total accommodation industry will go to the shared space economy.
“The shared space industry, which includes provider Airbnb, is set to significantly impact the hotel industry, with consumers set to spend over $34 billion in 2020,” says research author Lauren Foye.
“That sum represents approximately six per cent of today’s global hotel industry market size.”
There’s another aspect of the shared space economy Juniper looks at – ride sharing. Uber and Lyft currently earn more money than Airbnb and the likes, but that will change soon enough, the researchers believe.
Still, Uber is making huge efforts to break into the Chinese market, despite multiple roadblocks. It is investing more than $1 billion every year in China, and it will soon launch the UberMOTO service in India – a potentially enormous market.
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