Innovative Disruptors and Sharing Economy

Running head: INNOVATIVE DISRUPTORS AND SHARING ECONOMY
INNOVATIVE DISRUPTORS AND SHARING ECONOMY
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1INNOVATIVE DISRUPTORS AND SHARING ECONOMY
Executive summary
This paper is going to shed a light on the disruptive innovative companies like Airbnb which
have a huge role in transforming the travel and hospitality industry. This paper gives an insight
of how these disruptive companies have contributed to the change and what impacts they are
having on the traditional hospitality industry. The paper also focuses on the criticism that these
new disruptive companies have been facing and the future challenges which may negatively
impact the organisation in the long run.

2INNOVATIVE DISRUPTORS AND SHARING ECONOMY
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Transformation of the travel and tourism industry due to disruptive innovation........................3
Impact of disruptive innovation on traditional groups like hotels and motels............................4
Theories and models that explain growth of sharing economy and disruptive enterprises.........4
Criticism of disruptive enterprises...............................................................................................5
Challenges disruptive companies may face in the future............................................................5
Conclusion.......................................................................................................................................6

3INNOVATIVE DISRUPTORS AND SHARING ECONOMY
Introduction
Disruptive innovation is defined as the type of innovation that usually creates a new value
network and new market which eventually disrupts the existing value network and market by
displacing the established products, leading firms in the market and alliances (Christensen,
Raynor & McDonald, 2015). In recent times, the travel and hospitality industry has been facing
immense competition in the market because of the advent of disruptive innovation like Airbnb,
Tripping.com, HomeToGo and many more. These are online marketplaces that offer and arrange
homestays, lodging and tourism experiences. These provide tourists and visitors local experience
and provide long rentals at a cheaper rate in comparison to the hotels and motels. This paper is
going to reflect on how these disruptive innovators are transforming the travel and hospitality
industry shed a light on the theories that explain and show the growth of these sharing
economies.
Discussion
Transformation of the travel and tourism industry due to disruptive innovation
In the age of digitalization where majority of the population have access to internet, most
businesses have resorted to online business to cater to majority of the population who consume
products and services online for as they are more feasible and time consuming. This has led to
the transformation of the travel and tourism industry and has had a huge impact in the business.
New accommodation companies like Airbnb and HomeToGo have changed the trend in the
hospitality industry. These companies have not just dominated the market because of their
feasibility but also because of the local experience and also the overall experience they provide