The sharing economy, which is based upon owners being able to rent out something they own for a fee, is consistently on the rise. Thus, I was excited to learn about a pioneer of the sharing economy, Airbnb, which is an online community that provides hosts and travelers with a marketplace to list and book non-hotel accommodations, through Eric’s blog post. I quickly realized that Airbnb, much like its other counterparts in the sharing economy, is more than just a cool idea; it is a disruptive innovation that is changing the hospitality industry.

Eric states that through the success of Airbnb, we may be able to see more of these companies gaining pace. However, I have noticed the protests against the legality of such companies, which are mostly fuelled by existing companies in the industry that do not want to give up their market share, and this can hinder the growth of the sharing economy. This article really describes the situation well: the stewards behind new innovations think regulators should invent new rules to adapt to new business practices while regulators think these businesses should adapt themselves to the old laws. It really just comes down to resistance versus adaptation. However, I think resistance is futile as market disruption is inevitable. Instead of trying to continuously build barriers around the hospitality industry, I think hotels can analyze the elements that contribute to Airbnb’s popularity and try to apply it to their own business models. Thus, I don’t think disruptive innovation signifies the end of any particular businesses, but rather, provides opportunities for businesses, and subsequently, industries, to grow.

Some of Airbnb’s most popular offerings…personally, I would love to stay a night in the Rosie Gypsy Wagon!