ArticleSummary

ArticleSummary

JenaFox‘s article evaluates how the new systems, brought by Airbnb inthe hospitality industry, are likely to affect the hotels in New YorkCity. The impact of the innovative ways in hotel booking is evaluatedin two ways. First, the prosperity of Airbnb may lead to a drasticincrease in hotel prices. Clients may find it hard to bear with thenew charges and this may make them opt to other states whenever theydesire to tour. Secondly, the piece assesses how the participants inthe hospitality industry will develop in the future in terms ofsupply. There is an assumed counter relationship between the averagedemand of accommodations and the adoption of Airbnb.

Furthermore,hospitality professionals have begun to see Airbnb as a major barrierfor traditional inns. Such hotels may consider it a risky undertakingto change their clients from the normal ways of booking to Airbnb`sstyle of reservation. Financing will equally become a challenge forthe hotel business. Construction costs will rise with the increase inproperty values within the New York City and the entire America. Thetransitions will undermine the viability of expansion.

Apparently,small guesthouses have started struggling to maintain their positionbecause the averagely sized hotels are occupying most of the marketsegment. They are forced to try other measures including the adoptionof Airbnb. Regrettably, rather than being successful in the business,they are losing most of their clients to the well-established hotels.As a result, the article attempts to warn the entire nation of thepossible dangers posed by the sharing economy. Airbnb’s growth inpopularity should be looked both through its negative and positiveconsequences.

Reference

FoxJena., (2015). Airbnb: How the Sharing Economy is Affecting New YorkCity Hotels. Questex Media Group