Sharing Economy in Tourism - Opportunities and Challenges for Stakeholders - Essay Example

CRITIQUE- THE SHARING ECONOMY IN TOURISM: OPPORTUNITIES AND CHALLENGES FOR STAKEHOLDERS Student’s Name Course Title Name of Instructor Institutional Affiliation State Date The Sharing Economy in Tourism: Opportunities and Challenges for Stakeholders The ideology of the sharing economy has brought a significant impact on the development of various business organizations in the recent years. Through the implementation of the sharing economy strategies, contemporary business has managed to exchange relevant information about products and services through Information Communication Technology infrastructures among individuals and businesses in the global market (Matzler, Veider & Kathan 2015, p.71). One area that the adoption of the sharing economy has significantly influenced is modern tourism. There has been an increasing desire by tourists to possess full control of the way they consumer tourism-based products and services. The paper presents an evidence-based critique on the opportunities and challenges experienced by stakeholders in the field of tourism. Opportunities Available for Stakeholders The adoption of the sharing economy concept in tourism has played a significant role in the improvement of tourist activities in different parts of the globe. The major stakeholders in the field of tourism include tourists, traditional tourism suppliers, destinations and local communities: Tourists Tourists are the key players in the tourism industry. Tourists are the primary consumers of the travel products and services. According to Sigala (2015, p.8), through the sharing economy, tourists have been able to use different multimedia sources of information to search for available information about tourists’ destinations, pricing as well as accommodation. One of the opportunities that have been created by the sharing economy for tourists is the capability accessing information about major tourist destinations or tourist attraction sites. The sharing of the economy has led to the rise in the use of the various channels of communication to search for information about tourist destinations. A tourist who would like to tour a global tourist destination will find the most appropriate destination using the internet. The tourist, therefore, can identify and choose the most desirable tourist destination through using information technology infrastructures such as websites. Another opportunity that the sharing economy has provided for tourists is the ability to book for a visit to the tourist destinations. The adoption of advanced technological infrastructures such as the social networking sites enables tourists to book and make online payments before traveling to the actual tourist destination (Sigala 2014, p.5). The use of online payments and booking has been popularized through the adoption of the sharing economy. Online transactions can be made by the tourists hence limiting the admission time when the tourists are visiting their preferred sites. For example, a traveler who would like to tour Global beaches will search through the internet about the best beaches in the world. After searching the beaches, the tourist can, therefore, select famous beaches such as Whitehaven Beach and Bells Beach. The sharing economy features such as social networking sites can also enable tourists to share their experiences after consuming the tourism-based products and services. Traditional Tourism Suppliers The traditional tourism suppliers include tourist hotels, tourist attraction sites or travel destinations. Both human-made and natural tourist attraction sites are managed either by government agencies or private business firms. Such entities, therefore, form the traditional tourism suppliers. The adoption of the sharing economy phenomenon has created a sustainable environment for the tourism providers. The traditional tourism providers can promote their products and services through disseminating information through online networking. Through collaborative commerce, traditional tourism suppliers such as Airbnb have managed to distribute viable information through the internet (Smith 2016, p.5). E-commerce enables tourism suppliers to exchange viable information with potential consumers of tourism products and services. For example, traditional tourism suppliers can provide information on the internet about the major tourist attraction that visitors can consume. Local Communities The sharing economy has also created opportunities for the local communities. The community living around major tourist sites and destinations can acquire viable information concerning the tourist destinations as well as the traditional tourism suppliers. Moreover, through awareness creation in the online networking sites, the local communities can learn the need to preserve the available tourism sites such as the Blue Mountains and Sidney Harbour Bridge. The local community can also use the ideology of the sharing economy to fight for their rights in case the tourism suppliers are using the tourist sites for their selfish gains. The local community can exchange information on the social networking sites such as Twitter and Facebook and therefore check on the activities of the tourism suppliers. Destinations Tourist destinations refer to the places that tourists visit to consume tourism products and services. The adoption of the sharing economy has changed how tourism consumers select and consumer the sites that are found in the tourist destinations. Tourism suppliers have recognized the importance of e-commerce in promoting tourist destinations (Sigala 2015, p. 8). For example, tourism suppliers such as Airbnb use information technology to provide sufficient information about the tourist destinations. Moreover, the internet has also brought a tremendous impact on the way information about tourist destinations are relayed to the tourism consumers. A tourist can search for the most interesting tourist destination through online networking sites as well as websites before proceeding to book and pay for the services. Challenges Created by the Sharing Economy Tourists. Although the sharing economy enables a tourist to access information about tourist destinations easily, the information can mislead the tourists. Cyber-criminals can hack the databases of major online tourist suppliers such as Airbnb and change the information on the databases with the intention of deceiving the tourists and stealing their financial resources (Zervas, Proserpio and Byers 2015, p.45) Since the tourists can search for information online and undertake online booking and payments, cyber-criminals can create illegal websites and provide misleading information about non-existent tourist destinations with the aim of stealing the funds of the tourists. There have been reported cases in which potential tourism consumers have booked for non-existent tourist destinations based on the information on the online platforms. Traditional tourism suppliers. It is expensive for traditional tourism suppliers to disseminate information about the tourist destinations. Since there are many tourism consumers, it has become tough to manage the user's personal information, payment details as well as feedback due to the constant problem of cyber-crime. Cyber-crime has hindered the operations of traditional tourism suppliers since they must use an advanced technology that cannot be hacked by the cyber criminals. Moreover, some criminals pretend to be potential tourism consumers but end up robbing the tourists. Since the selection, booking, and payment of tourism products and services are done online, it is very challenging to detect individuals with ill motives (Hamari, Sjöklint& Ukkonen 2015 p.236). It has also become very challenging to the traditional tourism suppliers to maintain information technological infrastructures that support the dissemination and exchange of information between the tourism providers and the consumers. Local Communities. The sharing economy has hindered effective relationship between the tourism suppliers and the local communities. Since most of the operations of tourism suppliers are undertaken online, the interaction between the local communities and the tourism suppliers have reduced tremendously. This has created barriers since the local community feel that tourism suppliers have neglected them. Traditionally, the local community enjoyed good relations with tourism suppliers due to constant socialization. Therefore, in case, the local community has an issue that should be addressed by the tourism suppliers, it becomes very challenging due to the social barrier that has been created by the sharing economy. Destinations. The sharing economy has also created several challenges for the tourist destinations. Through the dissemination of information using the information technology infrastructure, some tourism suppliers provide false information about the tourist destinations. The desire to increase the consumption of the tourist products and services has led to the provision of false information about the destinations. For example, tourist suppliers can exaggerate about a tourist site to receive a lot of tourists. Using the social commerce, some tourist suppliers have been accused of sharing false pictures of the tourist destinations on their websites. The tourism suppliers use an exaggerated information to attract tourism consumers. The tourists are therefore selecting the destinations that give a false impression on the way they have been portrayed in the websites and social networking sites. Socio-Cultural, Institutional and Legislative Transformations to be Embraced The sharing economy can have a significant impact on the stakeholders if effective strategies are adopted (Cohen & Kietzmann 2014, p.281) The use of collaborative commerce and social commerce play a critical impact on the sharing economy. The changes that should be undertaken include: Adoption of Favorable Socio-Cultural Ideologies and Policies Transformations should be undertaken through adopting favorable socio-cultural beliefs. Various ideas shape the way individuals in the society use the sharing economy to consume tourism products and services. For example, the community should embrace advanced technology and its use in socialization. In most cases, advanced technological infrastructures are mainly used by the educated or the upper class in the society. Therefore, individuals from different social classes should recognize the need to embrace the sharing economy ideology. Individuals in the society should recognize that the use of information technology can enhance the consumption of tourism products and services. Moreover, the use of the internet to search and book for tourist destinations can enhance the operations of the tourism suppliers as well as other stakeholders in the field of tourism. Moreover, the tourist suppliers should treat the local community with respect and recognize that they play a significant role in preserving the tourist attractions sceneries and sites. The society should change its perception of the sharing economy and view it as a tool that can be used to improve the consumption of tourism products and services. The adoption of the sharing economy ideology has created an enabling environment for the tourism suppliers. The traditional tourism providers can promote their products and services through disseminating information through online networking. Through e-commerce, traditional tourism suppliers have managed to disseminate crucial information through the internet (Belk 2014, p.1597). E-commerce enables tourism suppliers to exchange viable information with potential consumers of tourism products and services. For example, traditional tourism suppliers can provide information on the internet about the major tourist attraction that tourists can consume. Moreover, the tourism supplier can also disseminate information about tourist sites as well as accommodation in those tourist destinations. Provision of Knowledge on the Sharing Economy in Learning Institutions Another measure that can be undertaken to ensure the sharing economy benefits the stakeholders is to ensure that courses related to the sharing economy are taught in learning institutions. When the learners acquire viable information about the sharing economy and its impact on tourism, the incorporation of the ideology in the provision of tourism activities can occur conveniently. Therefore, learning institutions should provide skills and knowledge to the sharing economy and how it can be applied in the field of tourism. The acquisition of knowledge on the sharing economy can enable the learners to be able to apply the skills in practical scenarios such as while working in the tourism industry. Hence the provision of knowledge on the sharing economy can benefit the stakeholders if the stakeholders adopt proper strategies. Adoption of laws that ensure effective incorporation of the sharing economy in the tourism industry- Laws and policies should be adopted to ensure effective implementation of the sharing economy in the provision of tourism products and services (Sigala 2015, p.32). The relevant government agencies should be in the forefront of passing laws and policies that ensure that the online communication and dissemination of information is undertaken properly. For example, laws that prohibit the provision of misleading information should be passed. This can improve the operations of the tourism suppliers. The laws should regulate the activities of the tourist's sites and other tourism suppliers such as Airbnb. The company, for example, has transformed Vancouver city due to the efficient implementation of the sharing economy concept in its operations. The management of the tourism suppliers and other stakeholders should also ensure that the laws are adopted in the industry. Tourism consumers in the society should recognize that the use of information technology can enhance the consumption of tourism products and services. Moreover, the use of the websites to search and book for tourist destinations can enhance the operations of the tourism suppliers as well as other stakeholders in the field of tourism. Moreover, the tourist suppliers should treat the stakeholders with dignity and recognize that they have a great impact on the preservation of the tourist attractions sites. The society should change its perception of the sharing economy and view it as a method that can be used to improve the operations in the tourism industry. Conclusion The sharing economy has transformed contemporary businesses. The tourism sector has benefited from the adoption of the sharing economy concepts. The adoption of information Communication Technology has led to the effective dissemination of viable information between the potential tourists and tourism suppliers. Tourists can use the internet to search for the most desirable tourist destinations, book and make online payments before traveling to the exact tourist destinations. The sharing economy has therefore helped in cost reduction, increased control and improved communication among the stakeholders in the tourism industry. Reference List Belk, R 2014, “You are what you can access: Sharing and collaborative consumption online”, Journal of Business Research, 67(8), pp.1595-1600. Cohen, B and Kietzmann, J 2014, Ride on! Mobility business models for the sharing economy. Organization & Environment, 27(3), pp.279-296. Hamari, J, Sjöklint, M and Ukkonen, A 2015, “The sharing economy: Why people participate in collaborative consumption”, Journal of the Association for Information Science and Technology. pp.236 Matzler, K Veider, V and Kathan, W 2015, “Adapting to the sharing economy”, IT Sloan Management Review, 56(2), pp.71. Sigala, M 2015, ICT in Tourism. University of South Australia. pp. 8 Sigala, M 2014, “Collaborative Commerce in Tourism: Implications for Research & Industry”, Current Issues in Tourism. pp.5 Sigala, M 2015, Entrepreneurship in the Sharing Economy and Implications on market form: Findings from the Airbnb Sharing Ecosystem. University of South Australia. pp.32 Sigala, M 2015, Social Media and Co-creation of Tourism Experiences. pp. 21 Smith, M 2016, 2015-2016 Airbnb Vancouver Economic Impact Report. Airbnb. pp. 5 Zervas, G Proserpio, D and Byers, JW 2014, The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Journal of Marketing Research. Pp.45 Read More