VRMA

    Shake-ups in the collaborative industry

    The collaborative industry has been growing at an exponential rate, with the business model roughly defined as consumer peer-to-peer sharing of resources (for example: car sharing, rental accommodation or bike sharing). While the industry is by no means new, public awareness and inherent demand have moved the industry into the mainstream with the growth of companies such as Uber and Airbnb. Not only is it disrupting the traditional sales industry and forcing a rethink of strategy, but it is also changing and developing as it establishes itself. We look into how this industry is changing right now.
     
    The collaborative industry saw a fundamental shift in 2016 as vacation rental marketplace giant Airbnb developed its product through the inclusion of professional property managers within its business proposal. This is a leap from the original disruptive strategy: offering individuals the method to offer their private properties to their peers as a convenient alternative to other types of lodgings.
     
    No doubt, Airbnb considered this initiative long and hard and considered the ultimate question: What do we do better than our competitors and how can we take advantage of that? The company’s success in the peer-to-peer industry has shown that its reputation for simple booking processes, trust-based marketing and the ability to meet customer demands is what has created a market demand for its model to include professional property managers. By including property managers in the Airbnb service, the vacation rental customer has access to a greater variety of properties using the trusted Airbnb booking and cancellation model and, ultimately, offers more choice and flexibility.
     
    How will this impact the vacation rental and the collaborative industries? The business models of both industries are in a process of change and expansion and need structure and moderation to maintain consumer trust during that growth period. Companies such as Airbnb can offer that as they have built a solid reputation for security and trust.
     
    Established non-collaborative companies have seen the shift in their markets as a result of these disruptive models and need to evaluate the threat and impact this may have on their businesses in order to ensure their survival. One option is to offer some aspect of sharing, independently or in collaboration, with established sharing companies, as seen with BMW’s product DriveNow.
     
    The collaborative industry will change shape, blurring the boundaries and offering customers a blended service of peer-to-peer with business-to-customer. As always, Airbnb is putting itself ahead of the competition and paving new ways for the industry and other collaborative companies to follow. 
     
    Avantio is passionate about providing industry-leading property management software to our clients. Avantio’s software aims to increase the market visibility of our customers’ holiday rental property portfolio in order to increase bookings and revenue, and decrease the time spent on the day-to-day management of property portfolios. Avantio provides vacation rental software, a channel manager with connections to 50+ vacation rental partner portals worldwide, and state-of-the-art, mobile-friendly holiday rental websites for professional property management agencies. It is a preferred partner with HomeAway and has recently launched a full API XML connection with Airbnb.
     
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