Can hotels stop the growth of Airbnb?

As a substitute for the traditional lodging facilities, including hotels, hostels and short-term rentals, the increasing supply of Airbnb properties is no doubt making an impact on hotels' bottom lines. So, can hotels stop the growth of Airbnb? 

Hotels' strategies for fighting against Airbnb

#Airbnb #Hotels #Competition - http://bit.ly/kwok051117 

Hotels are working hard to fight against the competition from Airbnb, other room-sharing websites and online travel agents (OTAs). For example:

• Hotels are encouraging travelers to search and make reservations directly on the hotels' websites by offering special discounts if they book directly, even though this strategy might possibly push Airbnb and OTAs to work closely together against hotels.
• Hotels are reinventing loyalty programs to win more new travelers and, at the same time, keep their repeat customers.
• More hotels are adding local flavors to lure travelers. If travelers choose Airbnb over hotels because they want to gain some unique experience as a local resident, this strategy may work particularly well.
• Hotels are responding to the shifting needs of customers by introducing new brands and through acquisitions. The merger of Marriott and Starwood is a good example.
• Most recently, hotels are planning for a lobbying push over the Priceline-Expedia "monopoly," in addition to the legislation push toward Airbnb. Hotels want to play a "fair" game in the competition with Airbnb and OTAs. So far, hotels have successfully convinced legislators to impose stricter regulations on room-sharing operators in several locations, including San Francisco, Vancouver, Amsterdam, and London.

Challenges that Airbnb faces

Despite Airbnb's phenomenal growth since its inception in August 2008, the company is facing more challenges lately.

On one hand, hotels are gaining more success in combating Airbnb. For example, New York City just passed a new regulation, charging steep fines to those Airbnb hosts who break local housing rules, resulting in fewer qualified listings in the market. Airbnb is also more willing to work with local governments to collect taxes on room-sharing rentals, now at the same rate as the one for hotels. On the other hand, Airbnb is facing allegations for the hosts' racial discrimination against renters.

The question is: Will those challenges slow down Airbnb's growth?

Airbnb's strategies for growth

Airbnb wants to become more than just a leading room-sharing platform in the market, as suggested in the following moves taken by Airbnb recently:

• Airbnb acquired a couple of travel service companies, including Luxury Retreats and Tilt, as the company is getting ready to become a full-service travel company.
• Airbnb wants business travelers, too. Not only has the company launched a website that tailors to business travelers, but they also work closely with the hosts to ensure the listings meet business travelers' needs. The most recent move Airbnb took was to introduce new booking tools that were specifically designed for business travelers.
• Airbnb is working on a gadget that will provide travelers with reliable internet connections during their trip. For business travelers as well as those young leisure travelers, stable WiFi connections have become a must-have amenity for their stays.

Competition between Airbnb and hotels

It is unlikely that anyone can stop the growth of Airbnb. The competition between Airbnb and hotels is only going to get tougher.

Can you predict what the next moves for hotels or Airbnb might be? What suggestions would you make to hotels or Airbnb to win the battle?

* This discussion was first published at Multibriefs.com.

Social Media: Is It a Gift from Angel or Devil?

I keep hearing two distinguishing voices about social media. Some complain that social media has negative impact on individual users and the society as a whole because people can become very addicted to it and there is no sense of privacy in the cyber world. Others think highly about social media because people can use social media to promote business, find jobs, solve crimes, and remain connected with friends and family. Which school of thoughts makes sense to you?  
 

To me, they all make sound arguments. I see social media as a “neutral” tool. If people do not understand social media or fail to use it in an appropriate way, it could be very harmful. At the same time, social media can certainly become very useful, depending on how we use it.

The following news videos, for example, provide some great examples of how social media can make positive impact. As featured in the first, CBS news video, NextDoor is a new entrepreneurship venture that keeps people connected with their neighbors. On NextDoor.com, people can seek support from neighbors and remain informed of what is happening in the neighborhood without knocking on people’s doors. According to the second, MSNBC news video, police departments are relying more on social media, especially YouTube in solving crimes.

So, what is your opinion on social media? Is social media a good thing or a bad thing?

Relevant discussions:

Still Feeling Reluctant to Adopt a Social Media Strategy? Please Think Again

Yammer: Another Entrepreneurship Idea that Built on Social Media

Social Media for Entrepreneurs

The CBS News video about Nextdoor:

 The MSNBC News video about more police departments adopting social media in solving crimes:

Visit msnbc.com for breaking news, world news, and news about the economy

References: The picture was downloaded from TightMixBlog.com.

Teaching Social Media in Business Schools: What Needs to Be Covered?

Earlier this month, I attended the International Entrepreneurship Faculty Development Program at University of Colorado Denver. Rahim Fazal (@rahimthedream), a three-time company co-founder, spoke to us on how Facebook is transforming entrepreneurship. In Rahim’s words, social media has made significant impact on 5Cs --- conversations, collaboration, connectedness, content, and customization.

I agree with Rahim that social media has changed and is still changing the way people are doing business. It becomes obvious that social media must be included in business education. There are forward-thinking business schools offering courses on social media. To my knowledge, however, many of these classes are taught as a marketing course. That may make sense because social media can be very effective in relationship marketing, but I argue that social media is more than just sales or marketing. Human resources, for example, is another area that uses social media to a large extent. Accordingly, as much as I believe that companies must include every functional and operational department into consideration when developing their corporate social media strategy, I suggest that business schools also need to cover social media content in every related subject. Or, they should offer a social media course through a multidisciplinary lens. I myself teach social media as a personal and business communication tool in my social media class, in which B2C and marketing communication is discussed along with the C2C, B2B, C2B, B2G, G2B, G2C, and C2G communication.    

What important social media competences do you expect from college graduates? In which class(es) should business schools cover the social media content? If you believe that social media should be a standalone course, what should be taught in that class?  

Relevant discussions:

The Challenges of Using Social Media in Teaching 

Hiring Creative Minds as the Chief Innovation Officer 

Do You See the Big Picture? 

References:

The picture was downloaded from Customerrock.Wordpress.com

Using Social Media in Communication: An Interview with Keren Ritchie

Today, I conducted a Skype interview with Keren Ritchie in my social media class. Keren received a bachelor’s degree in journalism and is currently a M.I.A. (Master of International Affairs) degree candidate at Columbia University. Her experience in social media ranges from non-for-profit to for-profit organizations. So, what are her thoughts on using social media in communication?

Keren’s Work Experience in Social Media

• While there is not much difference among organizations as an effective social media strategy can work for different entities, businesses in general allow more freedom and creativity in using social media for communication; government agents are more careful regarding the content being communicated.
• Social media policy is very important for every organization, but surprisingly, few organizations she worked for had established clear guidelines of using social media. “Many companies’ social media policies are more reactive; a good social media policy will allow organizations to be more proactive in responding to what is happening in social media.” As a result, whoever can develop social media strategies and write social media policies is “golden” in job search.
• As to which department should write the social media policy for the organization, Keren pointed to the Communication Department. I believe that social media should be included in an organization’s integrated business strategy because social media can be used in PR, HR, Marketing, and more. Accordingly, if the Communication Department oversees an organization's social media activities in different departments, it will work. Otherwise, the executive committee that develops integrated strategy should draft the social media policy for the organization. What are your opinions on this issue?

Trends in Social Media

• Many companies are “afraid” of social media because they don’t know how to use it. Seeing the opportunities and advantages of using social media in business, more companies will realize the importance of social media. They must use social media in order to stay competitive --- Avon is a good example of failing for not being able to catch up with the social media trends in competition.
• Organizations should hire at least one dedicated person to manage their social media channels. If budget is an issue, a manager should oversee such activities. Small business with limited resources is advised to use those “widely-reach” platforms with built-in integrated applications (e.g. Facebook, Twitter, and YouTube). Without a dedicated person who consistently updates relevant content on social media, it is difficult to engage the audience.

Using Social Media in Job Search

• Networking is still the key, especially for those vacancies that are not even publicized. LinkedIn and other social media tools can certainly help people build a network online, but the “personal connections” cannot be completely replaced by a virtual network.
• Students and job seekers are advised to acquire the following transferable skills: having (and being able to demonstrate) strong communication skills (verbal and written), knowing the relevant trends of the field, paying attention to details, multitasking/multi-talented (e.g. having the skill sets of writing, administration, and strategic planning), and the ability of know-how (e.g. using WordPress and making YouTube videos).
• Graduate school is a great place for networking. Alumni are often very helpful, for both undergraduate and graduate students.

Thank you, Keren for sharing her valuable advice of using social media in communication. What additional suggestions will you give to us?

Please visit http://sfy.co/qTg to read more about our Storify story for today’s interview.

Do You Have the Guts to Become an Entrepreneur?

Last Thursday, Isaac Budmen, co-founder of Little Tinker and a current SU graduate student, shared his entrepreneurial experience with us in my social media class. His presentation was short but inspiring.

Isaac recalled his experience of how he met with Dennis Crowley, co-founder of Foursquare and an SU alumnus. At first, Isaac was unable to set up an appointment with Dennis using his SU connections. Then, he went to Twitter. “Surprisingly,” he received a tweet from Dennis and finally met with him for a conversation. What a great example of using Twitter!

The founding of Little Tinker did not come from a brilliant idea or a 10-billion plan; it was simply triggered by an incident where Isaac and his friends added the hashtag of #Drinkup in their tweets during a happy hour. All of a sudden, #Drinkup became a global phenomenon. Isaac saw that as a great opportunity and “jumped in” to pursue his entrepreneurship ideas --- an entrepreneur may not know everything of starting up a new business and there will be mistakes on the road, but s/he must “jump in” and start working on the “small” ideas.

I believe that great business ideas must root in useful service, but not all ideas need to be “big.” As entrepreneurs “jump in,” they can further twist their ideas for a better business plan.

Do you have the guts to “jump in” and become an entrepreneur? What other lessons do you learn from Isaac’s experience?