Strategy planning, strategy execution and business model design focused on collaborative modelling
When we talk about collaborative tourism or tourism peer to peer, we refer to a new trend in the way of traveling based upon sharing basic resources such as accommodation, transport means or personal experiences with other travelers through platforms where the host publishes his/her offer and the tourist makes the booking.
Theoretically, this phenomenon comes from the collaborative economy model, where consumers may also become suppliers by sharing their means with other consumers, also operating on a global scope, prioritizing human relationship above competition and selfishness. The presentation results in being attractive to more and more tourists, who do not really know the business model completely.
Due to the constant transformation of the virtual economy, the task of identifying and describing virtual business models has turned to be quite hard. However, since this P2P platform business model usually determines it’s success, it is no longer unknown: platforms meet the needs of both supplier and buyer, and take a commission from the booked services price.
Checking the four main collaborative platforms operating in Spain for the four types of services available (eating, accommodation, transport and experiences), we find that their revenue sources are not so different from the traditional tourism intermediation models:
- AirBnB: charges a commission between 6 to 12%, plus 3% of the conversion rate.
- BlaBlaCar: depending on the amount of the transaction, it charges 1,60€ for transactions from 1 to 8€ or a commission of 20% for transactions of more than 8€.
- EatWith: it takes a commission of 15% of the transaction.
- Trip4Real: it takes 25% of the transaction.
A similar procedure is used for any other tourism intermediary, such as a travel agency, a tour-operator, broker, etc. The difference remains in that these intermediaries comply with the regulations in terms of safety, health and taxes, whereas most of the accommodation and transport means offered in the collaborative platforms do not comply with them.
Therefore, the consumer of collaborative platforms pays a lower price due to the non-compliance with the aforementioned regulations, and takes the risk of suffering any kind of accident without the safety prevention means. Furthermore, despite the social sharing philosophy upon which the platform is created, many suppliers operate for profit rather than for the aim of sharing cost or experiences. However, this is difficult to prove and control.
The hospitality sector’s opinion. The outburst of the tourism collaborative platforms has transformed many housing apartments into competitors for the hotels and regulated tourist apartments, and so it has turned into an important issue for the Public Administration.
According to the Spanish Confederation of Hotels and Tourist Apartments, there are only two possible solutions to this conflict: the total banning of the platform operations –as has happened in many major cities-, or the obligation for the apartments to comply with the same regulations as the current regulated tourist apartments.
It is necessary to take into account that the tourism sector in Spain is hyper-regulated. There are around 250 regulations at the European level referring to intellectual property, consume, safety and payment means, plus those from the local administration. All in all it entails a great deal of costs that do not apply to the collaborative platform operators, including the VAT, the police files, fiscal and sanitary costs. This is clearly a case of unfair competition. In this regard, there are many points to consider:
- The regulations applying to these tourist housing apartments are different for every region in Spain, for it is necessary for the destination regulators to study them all in detail.
- It is necessary to consider the product separately from the platform, taking into account that the platform operation is similar to the traditional channels such as the travel agencies, and so the same regulations should apply.
- The evolution of the global society is likely to propel this paradigm beyond the current conditions, demanding solutions in terms of adapting the new regulation and policies.
This blog post is from http://www.visionesdelturismo.es/turismo-colaborativo/