FUTURE OF THE TRAVEL SHARING ECONOMY ITB BERLIN MARCH 2015

FUTURE OF THE TRAVEL SHARING ECONOMY ITB BERLIN MARCH 2015

KEY TRENDS & CHALLENGES OPPORTUNITIES & FUTURE DIRECTION

KEY TRENDS AND CHALLENGES Why the rise of the sharing economy? 3 Response to recession and green zeitgeist Driven by urbanisation and technology Generation Y initial adopters but more diverse appeal Economics Environment Community Source: What s Mine is Yours: the Rise of Collaborative Consumption, Rachel Botsman

KEY TRENDS AND CHALLENGES Technological disruption plays a critical role 4 Technology key role in developing the sharing economy Social networks & reviews provide confidence Mobile & geo-based apps on the go bookings & realtime info

KEY TRENDS AND CHALLENGES Quantifying private rentals US$37 bn private rental sales, majority in Asia and Europe Dwarfed in comparison by global hotel sales only 6% 5 Global % Value Breakdown of Travel Accommodation 2013 Hotels Private accommodation Other accommodation

US$ million KEY TRENDS AND CHALLENGES Sharing brands rise up the ranks Airbnb and HomeAway competing with OTAs / TOs Expedia lists HomeAway properties Expected to enter GDS to target business travel 6 45,000 40,000 35,000 30,000 Leading OTAs vs Rental Brands Value Sales 2009-2013 Economic Impact of Airbnb 2013 Paris 185 million 1,100 jobs New York 461 million 4,577 jobs 25,000 20,000 15,000 10,000 5,000 Sydney 140 million 1,642 jobs Berlin 100 million 3,166 jobs 0 2009 2010 2011 2012 2013 Expedia Priceline.com HomeAway Airbnb Barcelona 175 million 4,000 jobs Source: Euromonitor International Source: Airbnb

KEY TRENDS AND CHALLENGES Uber goes for global expansion 7 Uber valued at US$40 billion, only 6 years old 55 countries, 250 cities Controversy - legal challenges, protests and court cases Key Car Metrics 2007-2014

KEY TRENDS AND CHALLENGES Sharing and car rental converge 8 Car share members to grow from 2.3 million members to 12 million by 2020 (Navigant Research) Key Players in Car Sharing Zipcar - AvisBudget US$296 million 870,000 members Hertz 24/7 - available in 9 countries by the hour BlablaCar ride- sharing 10 European countries Drivy - France, 250,000 members, 16,000 vehicles

KEY TRENDS AND CHALLENGES Legislative hurdles to overcome 9 Tax Owners or drivers not paying tax on revenue earned Workers Rights No insurance, pension, overtime/ holiday pay Regulations Lack of background checks Unmet safety regulations Zoning Residential zones ignored - noise & mess

KEY TRENDS & CHALLENGES OPPORTUNITIES & FUTURE DIRECTION

OPPORTUNITIES AND FUTURE DIRECTION New travel landscape with peer to peer 11 Search engines and meta search Travel companies websites Affiliate websites Social media and review websites Consumers Travel Brands Online travel agents Peer to Peer High street travel agents

OPPORTUNITIES AND FUTURE DIRECTION Future technology facilitates sharing 12 Mobile technology crucial to expansion of sharing Ancillary services Wearables as mainstream Competitors Sharing brand Technology Apple Pay to take mobile payments to the masses Payments

OPPORTUNITIES AND FUTURE DIRECTION Opportunities to explore Tours & activities Link travellers with locals eg Vayable Challenge of going global Independents Low barriers to entry Traditional B&Bs use sharing platforms Corporates Private rentals on OTAs eg Expedia & HomeAway Partnerships with sharing brands Carrier partnerships for pre-loaded apps 13

OPPORTUNITIES AND FUTURE DIRECTION Business travel the next frontier 14 Airbnb and Uber launched dedicated business websites FlightCar first sharing brand signed with GDS (Worldspan) Concur integrated Uber & Airbnb into TripIt

OPPORTUNITIES AND FUTURE DIRECTION Future entrants to the sharing economy: Who s next? 15 1 billion users worldwide, P2P huge potential 2014 launch of local services marketplace to build up local services Pioneer ebay has the potential to offer room rentals Apple Pay mobile payments drive will boost P2P

OPPORTUNITIES AND FUTURE DIRECTION Post-peer landscape 16 Best of both worlds Driven by Generation Y Align with industry standards & regulation Legislation likely to change City authorities to re-examine legislation Bans but not always enforced Travel brands on board Adopt sharing principles Launch sharing brand Partner with sharing brands

THANK YOU FOR LISTENING Caroline Bremner Head of Travel caroline.bremner@euromonitor.com www.euromonitor.com Report for download: http://bit.ly/itb-emireport Search for Euromonitor International Travel and Tourism @carolinebremner @euromonitor www.facebook.com/euromonitorinternational