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Today and with interesting to see all
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the presentations we had earlier. And I
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think I would like to put a different a
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bit of a different angle to decide
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situation. I'm a strong believer that
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the shared accommodation will regulate
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itself because I think nobody has won a
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battle with regulations. And I think
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the audience here is perfectly
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representing what is the shared
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accommodation the future of travel as
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well in my presentation I wanna go to
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be a little bit deeper into what
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vacation rental and check economy is
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all about we don't wanna debate today
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what is the difference because to be
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very honest I've been in the vacation
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rental space for ten years have
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represented companies you've been
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around for fifty years and more and
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shared a quick share sharing is is
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something nothing you right. So only I
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guess AB in B and also some other
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startups have all of a sudden brought
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is sharing economy into the space. But
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I've worked for a company who has taken
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private properties and rented them out
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for over fifty years so where's the
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hype about sharing economy and all of a
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sudden everybody reacts and we can also
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discuss if it'd been these actually no
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TI and not really a platform for
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sharing economy. So for me this is
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nothing new it has just become at a
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different angle. So as I said the share
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economy has been around for a long time
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we've been sharing maybe many years.
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You know sharing your lawn mower with
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your neighbour nothing is new so all of
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a sudden it's becoming more spoken
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about in regards to the brand so that
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they'll. I'm representing today home
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away I'm a board member of home away
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dot com which has been sold to expedia
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few weeks ago. But I would like to
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stress here that the deal has not been
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closed so therefore I cannot answer any
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specific questions and we got to the
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transaction from all way to XP optical
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so we have seen a lot of slides about
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sharing economy there's different
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articles and the sharing economy you
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lodging dividing renting and everything
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like that so it's it's becoming bigger
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and bigger and why is becoming bigger
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bigger because we have the
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technological bases on the internet to
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actually combine peer to peer
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businesses but it's been around for
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many many years. And he will also be
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around for many many years to come of
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course this place is extremely
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interesting because we laugh to share
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one thing also in regard to the hotels
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not I'll talk about that at the end as
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well. But I think manage something
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through regulations is something very
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difficult. It's actually the experience
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why consumer choose to have a vacation
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rental why consumer choose choose
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something different from hotel after
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three hours driving last night from
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from atmospheric to to the mouth and I
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was tired and I just wanted to go to
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bed and I checked into a hotel. And the
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and the first thing I had to do is fill
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in this little booklets with my with my
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details right because I'm a left and
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there and the booklet was nearly finish
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it was a pain in the neck for me to
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fill in these not documents I said this
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is totally crazy why cannot they have
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my data before icon the we can ago to
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bait this is just a small difference
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and I think there's a lot more in
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regards to services that need to happen
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in this industry that hotels will come
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back. And and and really fight up
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probably what what are the common is
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all about so I wanna go deeper on on
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the whole way side and and what is
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happening in between the entire space a
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vacation vacation rental has been
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around for many many many years. But
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all of a sudden. It's all about
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transactions right. So we have heard
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all the different brand trip adviser is
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very active in the space with
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acquisition of leaky holiday lading
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normally on many many others. And and
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normal way as accelerated that space
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eight years ago. I was attending the
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first focus right conference in the US
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for me. And I was sitting together with
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Brian shot holes was the founder and
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owner of the CEO of on the way. And we
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were discussing vacation rental. And we
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were talking to OT A.'s in and other
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people on the conference and saying hey
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vacation rental is going to be an
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extremely important vertical in the
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travel space and everybody look that
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doesn't say what vacation rental no way
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why because that stuff is not couple so
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there's not transactional basis eight
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years later I attended the focus right
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conference two weeks ago in Miami fifty
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percent of the content of the
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conference was about vacation rental.
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So this place has moved dramatically
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and why you have to move because it
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started and it it started to to
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consolidate and brands were build such
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as home way to really put the massive
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mark into this if you look at some
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figures about five years ago how many
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people actually travelled and rented a
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private accommodation with less than
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ten percent today we're talking about a
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quarter it does not mean that this
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business is taken away from the hotels
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it's actually also a lot of that is
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incremental business that coming to the
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space because all of a sudden it allows
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other people to travel Connor for
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hotels or whatever. And and it's become
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a recognised space. And the stuff is
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applicable online. So here's the space
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with over one point six million on on
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on the whole on a LBMB one point two
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million on on home way. And a quarter
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of people are actually booking a
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vacation rental why has this been
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accelerated so dramatically fast there
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is a five point to that I would like to
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elaborate on a little bit more first of
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all I think the one who really thought
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of that space to roll up the space was
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on the way always started ten years ago
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with the private equity funding of five
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hundred million US dollars and started
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to buy up all these listings platforms
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are are on the were so we're talking
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about twenty two different brands at
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home why has acquired an over the over
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the period of ten years. And have made
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the biggest market space in in the
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world of application and is about one
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strategic issue that they had and which
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there have now made a decision to
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exceed the basins and go transactional
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was the bases was not based on
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transactions it was based on listings.
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So was actually in advertising business
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where use a private on a pain
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advertising fee. And you were listed on
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that platform but it was not
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transactional and we said many years
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ago only a home way will have to go
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transactional because if they don't
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then somebody else will do it and I
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think walking dot com as picked up
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earlier to say we need to go
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transactional here because people wanna
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buy stuff you need it online and if you
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have to deal with the owner ten times
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back and forth this is another very
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good customer experience and this is
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exactly what has happened with on the
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way to go play that and said we said to
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the wall street that by two thousand
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sixteen on the percent of our content
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feasible couple and to accelerate the
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process all the the the shareholders
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have decided to not go with expedia so
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we're talking about transformation
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supply before it was all about holiday
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destination vacation rental so where
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actually go on vacation to to to make
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your holiday and the supply was this.
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So that's where the vacation rental
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starting touristy destinations that was
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to supply as it was for many many
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already used for many many years the
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big difference in regards to supply is
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it hasn't moved to this. And this has
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accelerated reasons dramatically in
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urban areas. And that therefore has
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become a bigger computation to the
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hotel industry because how all of a
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sudden it's in the city here is that
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the content is going the most we have
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seen the figures out from Roland this
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morning first as well but also the CD
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areas for the ones we're really taking
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most of the of of the accommodations
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that's why it has grown dramatically as
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well. So there is a supply one point
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seven million listing as of September
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two thousand and fifteen for ABB on the
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way has about one point two million
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listings what I found interesting and
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we have no data on that yet and I'm
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actually working on that with some with
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an external you is to what is actually
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duplicated content everybody's blown
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away well the numbers we see from house
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three win do blah blah blah blah
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there's many many platforms nine flats
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and whatever one thing I would like to
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stress here is that we know by by
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statistics that an average private
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owner is is listing his property to
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half times on different platforms
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number two we have made some
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comparisons at home away with some of
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these platforms and it was interesting
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to see especially with the reason their
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BMB the overlap is very limited why
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because we have different focuses in
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regards strategy we're a vacation
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rental more vacation rental platform
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and maybe B.s more stronger in the
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urban areas and therefore the overlap
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here is less than what we anticipated
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but when you look at other platforms
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like trip adviser flaky and whatever.
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There's all duplicate content a
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property manager today and I know some
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of that and we have a content of what
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fifty thousand properties that they
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match I can assure you you will find
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this fifty thousand properties on at
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least ten platforms if not more okay so
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here let's not get too excited about
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all of all these massive numbers here
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as well. And and in addition here
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everybody's talking about share economy
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peer to peer everybody knows where the
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word error B and B is coming from of
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sharing oh sharing obviously an air
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mattress yeah in your house actually
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the amount of shared properties on on
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their BB today is also extremely small
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very actually sharing the living room
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with with four people but still let's
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focus on on every maybe what have they
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done in regards to what they done
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extremely brilliantly and we also need
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to always keep also the hotel industry
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in mind is that if you know able to
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provide a platform where you can
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actually transform the product in a
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extremely attractive way. And and I
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think this is the most important also
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with the Amazon culture that we have
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today we serve tonight we poke we
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booked we want to have it tomorrow. I
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think in some book abilities in any
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product that we have is absolute she
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also for the future generations. We
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want to shop immediately. And last but
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not least and I think this is something
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that is extremely strong I had many
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discussions also in the hotel
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industries trip adviser feedback is it
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right is wrong with it written by other
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people well at the end of the day we
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are sharing our experience and so for
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me or anything we building communities
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and we're write. We're eight what we
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do. And I love this as well. And it it
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gives you a good feeling big and we all
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know that eighty percent of online
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booking so they're made in the travel
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industry are based on recommendations
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from and this makes it extremely
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powerful if the experience is good and
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everybody talks about regulations we
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can't regulate entire world about
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safety and tax and everything else is
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will be regulated I'm sure but what you
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can to is you can't you have to look
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after the quality of your product. And
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if the product is crap people who will
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give one star and then you better do
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something about it. This is what I love
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about Wilbur I'm a big fan and I
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travelled with Wilbur all the time. And
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and as soon as you get out of rubber
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you get a message you can write the guy
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and if you had a great talk within you
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given five stars people do more
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business. He will he will always have a
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water bottle in in the car to give you
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it's fantastic and the same happens
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here I would be very difficult to write
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a hotel that I had yesterday because my
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experience apart from having a bit was
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not so rate of integration into
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mainstream online travel. I think
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that's another key of why the vacation
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rental space has grown. So dramatically
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if we look at two thirty to forty
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actually more people are considering a
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hotel now to fourteen fifty two P fifty
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two percent of people who wanna book an
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accommodation also consider a hotel. So
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it's not about not considering a hotel
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it's not about and the age it's
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bleeding the market not at all and I
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will go deeper into that in a sec. So
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one these C.s is it true that an air
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begin be traveller wouldn't book if
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there is not another ABB is that right
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no definitely not if you low in one
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maybe be traveller is looking for is
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also looking at mid scale hotels. So
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over forty percent of them are actually
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make an ABMPV booking at the end of the
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day are looking for mid scale hotels
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they look at upscale hotels thirty more
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than thirty five percent are actually
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looking for a upscale hotel before
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table can there be this is unbelievable
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they look at data breakfast. And we
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will go into deeper why they actually
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book maybe be at the end of the day
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localhost else of course to look a
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budget economy hotels. And only five
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percent of the people who can maybe be
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actually only one to broken every okay
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this is tremendous. So what does that
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tell booking dot com rentals on some
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innovators looking to on was the first
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reality I was on this to to integrate
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vacation rental content into their
00:14:28
search platform at hotels. And they did
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not separated no they program their
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algorithm in a way that depending on
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the monumentally the depending on
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supply and hotel bookings that extra
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there started to enter vacation rental
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and they know so much about you as well
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that they all of a sudden start
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offering and that's why this space to
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start to flunk together a lot stronger
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I think booking look on is one of the
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first ones or is it actually is the
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first one and that has on the student
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that came in here I want to tell you a
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little story. Uh eight years ago he was
00:15:04
little Simon going to US representing a
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small property management company in
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Switzerland and nobody knew what
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workstation renders all about and I had
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the beautiful advantage that I knew the
00:15:16
president the founder and the owner of
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focus right conference and I think he
00:15:20
felt a little sorry for me coming all
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the way from Switzerland not knowing
00:15:24
anybody in this world. And he's invited
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me on the first evening to a VIP dinner
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he was a thirty five C always in the
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travel industry whereas sitting in the
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kitchen of this five star hotel with
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cooking a meal together it was
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brilliant. So we had big tables were
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sitting around. And I was sitting there
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I to temperament on my left and on my
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right. And americans are very
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approachable their easygoing they you
00:15:49
know they don't that doesn't matter who
00:15:52
they are on the left of me there was a
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a a good looking guy in his in his mid
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fifties late fifties. And I said I'm
00:16:01
ending Simon who where uses my name is
00:16:03
Jeff boy. I think great great fantastic
00:16:06
what you do for a living. And egos are
00:16:09
actually on the CEO and chairman of
00:16:10
price line oh okay sorry five hundred
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million five hundred billion dollar
00:16:14
company right on the right of me that
00:16:17
was a guy called Steve cal for a what
00:16:19
you do for leaving on the CEO and
00:16:21
chairman of trip adviser a nice to meet
00:16:23
you and I'm silently even what you do
00:16:26
well we're in a vacation rental space
00:16:28
but you know what this is a fantastic
00:16:30
space transport sector me CDSC D.'s but
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the problem is that stuff is not a
00:16:36
couple. And if you would if you put
00:16:38
people couple I would do a deal with
00:16:40
you. And I said if this is home away
00:16:43
what I do is I have twenty four
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thousand in simple couple property so
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much I thought he pulled out the file
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send an SMS to they're Houston a set
00:16:52
list you need me this guy naps that go
00:16:55
talk to him and that's how we
00:16:56
integrated our plan our our first
00:16:58
vacation rental bookings into booking
00:17:00
dot com and that was that you started
00:17:03
eight years ago and now this as a
00:17:10
sailor compo colour a lot about a deal
00:17:12
is not close. But expedient was we has
00:17:14
shown interest in acquiring home away
00:17:16
and why because they want the content
00:17:18
that are used made a quote a couple of
00:17:20
months ago or weeks ago we said we
00:17:22
don't need it why because we have
00:17:24
already the vacation rental condom as
00:17:26
it is so why should we do with expedia
00:17:29
doesn't and I took a long time for an
00:17:32
OTA to understand vacation rental it
00:17:35
was a nightmare for us because people
00:17:38
told calling also said does the
00:17:40
swimming pool have salt water doesn't
00:17:41
have freshwater individual
00:17:43
accommodations individual the curtain
00:17:45
is different the land just different
00:17:47
the poster is different the catalyst
00:17:49
different the television is different
00:17:50
everything is different vacation right.
00:17:52
There's no standards and for the OT
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I.'s this was a nightmare and at the
00:17:57
end of the day vacation rental at time
00:17:59
is not understood that Saturday to
00:18:00
saturdays is long bone you need to have
00:18:03
shortened stared long term space et
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cetera. And the hotel industry couldn't
00:18:07
handle that they said what Saturday to
00:18:09
Saturday is impossible. So we have to
00:18:11
do a lotta work for them to understand
00:18:13
how our business works. And now the
00:18:15
same with expedia this is publicly
00:18:17
known XP does made a corporation with a
00:18:19
way to three years ago to usable we
00:18:21
announce that and there were struggling
00:18:24
in in actually integrating the logic
00:18:26
but once you have on the student and
00:18:27
have to write algorithms to mix
00:18:29
vacation rental with hotels it's
00:18:31
becoming extremely powerful. So let's
00:18:36
talk about I travel or transformation.
00:18:40
And that's something we need to focus
00:18:41
on is who are travellers and why are
00:18:43
they making the decisions they make
00:18:45
each. So we will talk about the new
00:18:48
that generation render. But let's talk
00:18:51
about first the normal rent why renters
00:18:56
who want to rent rent oh Mike
00:18:59
amenities. So they want to feel home
00:19:01
kitchen facilities washer dryer more
00:19:04
room multiple bedrooms more freedom.
00:19:08
And only twenty seven percent actually
00:19:11
focus on price it's less expensive okay
00:19:15
it's really less expensive. And then
00:19:18
you have more casual on like experience
00:19:21
is not so big everybody says they want
00:19:23
to share or have a have a vacation
00:19:25
rental because they wanna have home
00:19:26
like experience not better value for
00:19:28
money is an interesting one you talk
00:19:30
"'em" accommodate friends and family. I
00:19:33
mean I'm a father of four kids and I
00:19:35
tell you it will take ages from you not
00:19:37
to choose anything else vacation right.
00:19:39
"'cause" in the morning I have such a
00:19:41
big mess at home with four kids being
00:19:42
hungry I don't want to have them at the
00:19:44
buffet downstairs throwing out the milk
00:19:47
chocolate and everything else. So let's
00:19:52
talk about the new generation renders I
00:19:54
think that's the interesting one also
00:19:55
for the hotel and so here it looks a
00:19:59
lot different what takes out if they
00:20:02
want more freedom which I can fully on
00:20:04
understand more privacy. And yes the
00:20:08
new generation has is more price
00:20:10
sensitive yes. It's about forty percent
00:20:14
but here more freedom more privacy
00:20:17
casual. And a yes they do have the more
00:20:21
home like experience that they that
00:20:23
they enjoy these are the ones of the
00:20:26
new generation renders why they take
00:20:28
vacation rentals before the hotels
00:20:33
having said all that I think it's
00:20:37
important to see that it's not just a
00:20:39
new generation or the new generation
00:20:42
renters were like catcher accommodation
00:20:44
vacation rentals and this graph will
00:20:47
show it to you so it's not just
00:20:50
everybody talks about the million years
00:20:52
and that's what they want to do when
00:20:54
and all the others are going still in
00:20:56
hotels not that's not if you look at it
00:20:59
that in two thousand forty over twenty
00:21:03
five to ten no sorry over all close to
00:21:06
twenty five percent of people who
00:21:07
rented accommodation where sixty five
00:21:11
and older. And yes of course the
00:21:13
biggest speakers here between thirty
00:21:15
five and forty four what I'm also
00:21:17
saying this is actually also additional
00:21:20
business to actually the booking
00:21:22
figures of hotels in the US for example
00:21:24
have also increased because we have a
00:21:26
new generation of travellers and I
00:21:28
think mixing the spaces is what's gonna
00:21:31
be the biggest single challenge for
00:21:33
forty OT A.'s and for the distribution
00:21:36
to have both spaces being able to grow
00:21:39
being in the rental car in the rental
00:21:41
space and be in in the hotel space. So
00:21:45
concluding my presentation of this
00:21:48
morning shared accommodation vacation
00:21:51
rental is here to stay absolutely and
00:21:54
the regulations will not take this
00:21:56
business down no matter what yes we
00:21:59
have seen legal battles and San
00:22:00
Francisco we've seen I menu or in many
00:22:02
other C D.'s Amsterdam et cetera but
00:22:04
this space has been around for ever so
00:22:07
what's the difference all of a sudden
00:22:10
what's the difference can you fight a
00:22:13
you travel work tickled with
00:22:15
regulations and I'm sure we'll hear
00:22:17
more about from over about it as well.
00:22:19
I don't think definitely not in the
00:22:22
business will growl also one of my easy
00:22:25
CCCBB going to become more an OT eigen
00:22:29
anything else. I might think my thesis
00:22:31
I think really because hotel or using
00:22:34
your beam B already for distribution to
00:22:37
hotels need to rethink their strategy
00:22:40
fast I think if we need to look at the
00:22:42
different segments of the hotels what
00:22:44
is the what I think the hotel should
00:22:46
talk about is how can I increase the
00:22:50
customer experience how can I
00:22:52
accommodate a customer better in my
00:22:54
hotel not to reduce costs not to make
00:22:57
the room smaller anything it's actually
00:22:59
the service I want to arrive no matter
00:23:02
if it's a two or three start putting
00:23:03
even linguistically even use your room
00:23:06
key goodnight. And if I pay for a
00:23:08
wireless lan di walk straight back out
00:23:10
aloud hotel. I mean who of you wants to
00:23:14
participate today for a wireless lan
00:23:16
and out tell I mean that if that's will
00:23:19
take ages for them to understand. It's
00:23:21
all about understanding the customer's
00:23:23
needs and behaviour that's what it's
00:23:25
that's what the key is that behaviour
00:23:28
is changing I've done a I speech about
00:23:35
this whole transformation. And I the
00:23:37
key about digital transformation is to
00:23:40
be had the customer behaviour is
00:23:42
changing if technology you can do
00:23:44
anything today not a problem. But the
00:23:47
behaviour is strange and then we think
00:23:49
we need to understand first the
00:23:50
behaviour of the consumer and then we
00:23:53
can adapt our business to it and the
00:23:58
consolidation will continue. And last
00:24:01
but not least the only way that also in
00:24:03
the vacation rentals business the
00:24:06
business will go forward is that we
00:24:07
need all transaction we need both
00:24:10
couple basis thank you very much for

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Conference Program

Welcome
Mila Trombitas, Responsable Filière T ourisme, HES-SO Valais Wallis
4 Dec. 2015 · 10:06 a.m.
115 views
The Sharing Economy in the Swiss Accommodation Sector: Study Results
Roland Schegg, Prof. Institut de Tourisme, HES-SO Valais
4 Dec. 2015 · 10:16 a.m.
112 views
Shadow hospitality: the view of the hoteliers
Thomas Allemann, Member of the management board hotelleriesuisse
4 Dec. 2015 · 10:28 a.m.
Vacation Rental: A global 100 billion dollar market is getting organized and challenged by the sharing economy!
Simon Lehmann, CEO Biketec AG & Board Member, HomeAway, Inc.
4 Dec. 2015 · 10:47 a.m.
103 views
Sharing Economy: The responsible tourism perspective
Gavin Bate, CEO Adventure Alternative
4 Dec. 2015 · 11:12 a.m.
176 views
Round Table Discussion with morning speakers: Sharing Economy "Opportunity or Thread?"
Macy Marvel, Consultant at Opus Hospitality
4 Dec. 2015 · 12:07 p.m.

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