A survey from Travel Technology Europe shows that hotel industry buyers are investing in marketing and loyalty programmes in response to the growth of the sharing economy.
The findings show that 50 percent of hotel industry technology buyers have invested in marketing technology to promote their services as a direct result of increased competition from sharing economy businesses.
Meanwhile, 50 percent of buyers have also invested in loyalty programmes, recognising that repeat business can be an effective means of protecting their revenues from the growth of sharing economy businesses.
Only 17 percent of hotel buyers have not responded to the growth of the sharing economy by investing in new technologies or enhancing their services.
Majority of hoteliers see the sharing economy as an opportunity
Four in ten (43%) hotel industry buyers view the sharing economy as an opportunity. Around 14 per cent see it as a threat, with one respondent saying that they have lost significant business to Airbnb.
Steve Lowy, chairman of The Hotel Marketing Association and Travel Technology Europe Advisory Board member said: “The sharing economy is nothing new. Back in the Middle Ages, people would sleep at inns on the way to a destination and exchange their stay for goods on the back of their horse and cart.
The explosion of the tech-based sharing economy is another reason why hotels have had to focus on their own marketing, not just to stave off competition but also to protect their existing businesses.
For too long hotels have said they are “technophobes” but sadly this doesn’t wash in the modern age, and it is great to see that the study has shown that hoteliers are investing in themselves and their own marketing activities and supporting technology.”
David Chapple, event director, Travel Technology Europe, commented: “The sharing economy has meant greater competition in the accommodation sector and it appears that buyers are responding to this by investing in marketing to differentiate their services and customer loyalty programmes to incentivise repeat bookings.
Online registration is now open for the Travel Technology Europe show at Olympia Grand, London, from 21-22 February 2018, visit: http://www.traveltechnologyeurope.com/visiting/register-for-free to apply for a free visitor pass.