How the Sharing Economy Is Taking Over Corporate Travel
$401. $456. $548. So it goes for spending an average weeknight in a three-star or higher-rated hotel in downtown San Francisco during the workweek.
As traditional hotel chains, airlines, and rental car companies continue to reap the profits of unwieldy business travel expenses, a new trend is emerging among many business travelers: participation in the sharing economy.
Sure, getting a home share for a vacation can be a great way to save some money and maybe have a bigger, more relaxed space. In fact, the sharing economy is projected to grow to $335 billion by 2035, according to a recent report from PwC. But how did the sharing economy suddenly become one of the most popular business travel trends? Let’s investigate.
The sharing economy is taking the business travel world by storm. Here’s why:
We’ll examine five key reasons why the sharing economy has become entrenched in the business travel world, and why it’s not going anywhere any time soon.
The sharing economy’s popularity within corporate travel can be attributed to the same factor that has launched its entrenchment in the world as a whole: convenience. Instead of queuing in a long line at the rental car vendor after an even longer flight, business travelers can open their phone and call a car directly to their hotel in minutes via rideshare apps such as Uber or Lyft.
Corporate travel policies often limited business travelers to just a few hotel options, and sometimes these options are further away from the places where travelers have their business obligations all in the name of a company partnering with a certain hotel chain. With home sharing platforms such as Airbnb, business travelers are able to pinpoint the most convenient lodging locations for their business obligations and find a home sharing option that is free of being tied down by any hotel chain loyalty.
Increased market presence in everyday life
Corporate travel policies are bound to be influenced by larger travel industry trends outside the business world. And as the number of sharing economy participants increases at a rate of five million people per year (as research from Statista indicates), it’s no surprise that there is greater demand to use these sharing platforms for work as well.