How the Sharing Economy is Transforming Travel Hear from Industry Experts 02.03.16 HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL
Speakers
Douglas Quinby Vice President of Research, PhocusWright
Mr. Quinby is a travel industry veteran who enhances Phocuswright's research team with his keen insights, diligent analysis and industry relationships. Douglas has been designing and leading Phocuswright research for many years, including Phocuswright's U.S. and Asia Pacific Online Travel Overview publications. Douglas is a recognized expert on online travel and travel distribution and is frequently cited in leading media outlets including Bloomberg, CNN, The New York Times, USA Today, The Wall Street Journal and The Washington Post. He is also a sought-after speaker and moderator, and has presented Phocuswright research at numerous travel industry events around the world.
@douglasquinby
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 2 (Robert Gallagher)
Speakers
Nikki Parsons is the Global Head of Travel and Meetings for AIG, Inc., based in New York City. Nikki is responsible for AIG’s Global Travel and Meetings program with combined spend $250MM, across 75 countries and a global team of 15 across the Americas, EMEA and Asia Pacific. Nikki started with AIG back in 2011 as the Asia Pacific Regional Travel & Meetings Manager, and was based in Singapore Prior to joining AIG, Nikki held travel management positions at Citi in Singapore, Standard Bank and Merrill Lynch both in London. Originally from the UK, Nikki holds a bachelor’s degree in Recreation Management from Loughborough University.
Nikki Parsons Global Head of Travel and Meeting Services, AIG
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 3 (Robert Gallagher)
The Evolution of the Sharing Economy Founded: 1995 Online classified advertisements for jobs, personals, for sale and wanted items. Founded: 2008 Rentals of homes and apartments around the world.
Founded: 2008 A mobile market-place that outsources small jobs and tasks to neighboring users. Founded: 2009 An application that allows passengers to connect with drivers of vehicles for hire, and then track and pay for their rides, all from their smartphones.
Founded: 1995 A global market-place for learning and teaching online, enabling everyday experts to share their skills with the people who want them.
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 4 (Robert Gallagher)
sharing economy (shar-ing e-con-o-my)
n. any business
which uses the centralized tracking services of a web accessed third party to connect users to a decentralized selection of potential suppliers of services.
These suppliers generally supply the products, i.e. rooms or vehicles, for these services, which are traditionally purchased, offered, and maintained by fully centralized alternatives such as hotels or taxi companies.
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 5 (Robert Gallagher)
1 Overview: The Travel Sharing Economy
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 6 (Douglas Quinby)
Lawnmower Guitar $50 Storage $200 Car $50 Power tools Boat $250 Bike $10 $20 a day a week a year a day $20 a day a day a day Dog $10 a walk
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 7 (Douglas Quinby)
Welcome to the Sharing Economy
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 8 (Douglas Quinby)
Extra room $75 a night
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 9 (Douglas Quinby)
Types of Sharing Economies
Homes and rooms
Cars
Local touring and dining knowledge
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 10 (Douglas Quinby)
24%
of leisure travelers
46%
of business travelers
Source: Phocuswright’s Hail This! The Transformation of the Ground Transportation Experience for Travel, 2015
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL
11 11 (Douglas Quinby)
© 2016 Phocuswright Inc. All Rights Reserved.
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 12 (Douglas Quinby)
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 13 (Douglas Quinby)
Private Home, Apartment or Condo Rentals Are Growing… 25% 17% 13% 8%
2010
10%
2011
2012
2013
2014
Source: Phocuswright’s Rentals Rising: The State of Private Accommodation in U.S. Travel, 2015 © 2016 Phocuswright, Inc. All rights reserved.
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL
14 (Douglas Quinby)
The Vacation Renter?
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL
15 (Douglas Quinby)
Renters and Non-rental Travelers by Age
Non-Renters
62%
Renters
38%
49%
51%
Millennials Ages 18 - 34 Ages 35 + Source: Phocuswright's Share This! Private Accommodation & the Rise of the New Gen Renter, July 2014. © 2016 Phocuswright, Inc. All rights reserved. HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 16 (Douglas Quinby)
The New Gen Renter
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 17 (Douglas Quinby)
Seeking a Unique, Authentic Experience
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 18 (Douglas Quinby)
Why Renters Rent Home-like amenities (kitchen facilities, washer/dryer)
52%
More room/space
49%
Multiple bedrooms
48%
Easier to accommodate my family or group of friends
45%
Better value for money
44%
More freedom
36%
More privacy
29%
Less expensive
27%
Prefer a “home-like” experience
26%
More casual
0%
26% 10%
20%
30%
40%
50%
60%
Source: Phocuswright's Share This! Private Accommodation & the Rise of the New Gen Renter, July 2014. © 2016 Phocuswright, Inc. All rights reserved. HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 19 (Douglas Quinby)
Why New Gen Renters Rent 44%
Home-like amenities (kitchen facilities, washer/dryer)
48%
More room/space
41%
Multiple bedrooms
44%
Easier to accommodate my family or group of friends
34%
Better value for money
47%
More freedom
52%
More privacy
38%
Less expensive
41%
Prefer a “home-like” experience
40%
More casual
0%
10%
20%
30%
40%
50%
60%
Source: Phocuswright's Share This! Private Accommodation & the Rise of the New Gen Renter, July 2014. © 2016 Phocuswright, Inc. All rights reserved. HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 20 (Douglas Quinby)
Today’s Rental Traveler
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 21 (Douglas Quinby)
Not Just Millennials… 2013
Percentage of Travelers Who Have Rented Private Accommodation by Age
2014
35% 30% 25% 20% 15% 10% 5% 0% 18-24
25-34
35-44
45-54
55-64
65+
Source: Phocuswright’s Rentals Rising: The State of Private Accommodation in U.S. Travel, 2015 © 2016 Phocuswright, Inc. All rights reserved. HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL
22 (Douglas Quinby)
Not Just Leisure…
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL
23 (Douglas Quinby)
The Sharing Renting Economy
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL
24 (Douglas Quinby)
“
The “sharing economy” was outed as the “rental economy.” Nobody is sharing anything. People are making money, plain and simple. Technology has made renting things as simple as it made buying things a decade ago.
”
– Fred A Wilson, Union Square Ventures
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 25 (Douglas Quinby)
The Sharing Economy Is Big Business!
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL
26 (Douglas Quinby)
2 The Sharing Economy: A Travel Manager’s Perspective
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 27 (Nikki Parsons)
The New Reality: Sharing Economy and the Travel Manager
1
Taxis
Food
Cars
Jets
Rooms
Office
We must not ignore the ‘sharing economy’
2 Already popular among business travelers
3 We’ve seen successful services across multiple commodities
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 28 (Nikki Parsons)
Innovation How Should We Respond?
Legal and Regulatory Challenges
How do we give our travelers what we think they want while maintaining the core founding principles of our managed programs and ensuring their safety?
Get educated about what the “sharing economy” is offering.
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 29 (Nikki Parsons)
Advantages Travelers and Travel Managers A C C O M M O D AT I O N
GROUND TRANSPORT
Cost
Car Pooling
More Space
Taxis
Homey
Cost (except during surge pricing)
More free amenities
Convenience
Self-catering
Geolocalization of drivers
Expanding stock
Environmental
Different Location
Connections
Making Connections
Traveler Satisfaction
Traveler well-being Customer Satisfaction
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 30 (Nikki Parsons)
Risks Travelers and Travel Managers
Health/Safety/Security
Ease of doing business/productivity
Cost
Customer Satisfaction Data Security
Wi-Fi/Business Center
• Comfort • Delays
Food
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 31 (Nikki Parsons)
Corporate Adaptations of Sharing Economy Services
Sharing Economy Supplier Changes
Reporting Is Currently Available for Businesses
Changes to Our Current Supplier Base
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 32 (Nikki Parsons)
Key Questions to Ask
1
2
Culture?
Traveler Demographic?
3
4
Early-Adopters for Technology?
How will this fit within your managed program?
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 33 (Nikki Parsons)
Making Decisions We, as Travel Managers, need to…
Assess our companies’ readiness and/or appetite Get educated on what’s out there, meet with the new suppliers Push legacy suppliers to learn from and embrace the enduring popular themes from the sharing economy Review and evaluate with key internal partners
Implement and communicate
HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL 34 (Nikki Parsons)
Q&A H O W T H E S H A R I N G E C O N O M Y I S ITM RPA ANCS TFIONRGMTI N RG A VTERLA V E L
AIG Travel, Inc., a member of American International Group, Inc., is a worldwide leader in travel insurance solutions and assistance. Travel GuardÂŽ is the marketing name for its portfolio of travel insurance solutions and travel-related services, including assistance and security services, marketed to both leisure and business travelers around the globe. Services are provided through a network of wholly owned service centers located in Asia, Europe and the Americas. For additional information, please visit our websites at www.aig.com/travel and www.travelguard.com. American International Group, Inc. (AIG) is a leading global insurance organization serving customers in more than 100 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
Phocuswright, the travel industry research authority, fosters smart strategic planning and tactical decision-making by delivering primary research on the evolving dynamics that influence travel, tourism and hospitality distribution. To complement its research in North and Latin America, Europe and Asia, Phocuswright partners with and produces several high-profile conferences around the world. www.phocuswright.com HOW THE SHARING ECONOMY IS TRANSFORMING TRAVEL