Read the article: “Airbnb and the Unstoppable Rise of the Share Economy (Links t

Question

Read the article: “Airbnb and the Unstoppable Rise of the Share Economy (Links to an external site.)Links to an external site.”. A recent trend in the consumer marketplace is the ability for a consumer to share their personal belongings, such as their homes/apartments, autos, tools, bicycles, and so forth. The shared economy has now become a multibillion dollar business.

Explain how this concept is disrupting our traditional economy.

Describe whether the shared economy is creating new value for the consumer or if it is just replacing existing business.

Geron, T. (2013, January 23). Airbnb and the unstoppable rise of the share economy (Links to an external site.)Links to an external site.. Forbes. Retrieved from http://www.forbes.com/sites/tomiogeron/2013/01/23/airbnb-and-the-unstoppable-rise-of-the-share-economy/

Explanation / Answer

Shared economy is definitely disrupting the traditional economy. Consider the example of the hospitality sectory, particularly, hotels offering food and accommodation. There are many services like AirBnB which have disrupted the hotel industry. Individuals with spare property are able to become hotel owners whenever they want and individuals looking for temporary accommodation are able to get a good value for their money with a homely touch. As there are not many overheads in maintaining a single property by a home owner when compared to a hotel, the costing is less and thus the price. These prices are unbeatable by the traditional hotels.

It is not just about providing a room, shared economy creates a new value associated with human psychology. Human beings are essentially social. Many look forward for AirBnB stays as a means of networking. So, shared economy is not just replacing traditional business but adding unique value by virtue of its being shared. It is more than a room or a flat that one shares.

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.