The Impact of New Technology on Collaborative Consumption for Tourism

This report explores the impact of new technology on collaborative consumption for tourism, with a focus on companies like Airbnb. It discusses the benefits and challenges of adopting new technology, as well as strategies and recommendations for managing technology in the tourism industry.

Technology
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
The impact of new technology on collaborative consumption for Tourism ...................................3
Literature review..............................................................................................................................5
The impact of new technology on collaborative consumption for Tourism...............................5
Company strategies of development ..............................................................................................5
Recommendations............................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7
Books & Journals........................................................................................................................7

INTRODUCTION
Technological management refers to a set of different management disciplines which
assist organisation in order to manage their techniques so that they can create competitive
advantages. It also identify as development, assessment, execution of technology that help
companies to attain operational objectives as well as strategic objectives (Argote and Hora,
2017). In this present report, Airbnb, Inc. is chosen as the base company with the headquarter
located in San Francisco, California, United States. It is an online platform for offering and
arranging lodging, tourism experiences, home stay and many more. Airbnb is an organisation
which does not own any kind of real estate nor host any kind of events but worked on
commission basis where they receive money on each booking. The report coves different new
technology that helps companies in improving practices is going to discuss. The different
methods & approaches of advance and new technology is cover in this report. In addition to this,
the process of obtaining innovative technology is discuss. Later, it covers the factors that affect
new technology in the organisations.
The impact of new technology on collaborative consumption for Tourism
It has been said that any kind of set of productive techniques and tools which provide
various improvements in the current technologies. In today's competitive world, it is said that
each and every organisation should modify their present technologies according to the changing
needs and requirements of customer's. With the help of using high quality technology, large
number of customers will be attracted towards the company and its products. Collaborative
consumption refers to the shared use of products and services by group of people. In context of
normal consumption it has been said that individuals need to pay full amount of money in order
to maintain their access on it. But on the other hand, collaborative consumption includes multiple
people who bear all the cost in to maintain their access over the products and services. For
instance, ride sharing is the process where multiple individuals pay for it and have access for
transportation not only the owner of the vehicle (Cetindamar, Phaal and Probert, 2016). In the
present context of Airbnb, the main work of this type of business organisations is to provide
accommodation, properties and villas to their customers with short time lodging as well as
tourism related activities. Guest or individuals mainly search for lodging facilities by by using
various filters such as price, dates, type of lodging, location and many more. This is considered

as one of the most beneficial method in today's world where multiple people pay for a particular
property and get its access for a limited period of time. It has also been said that management
team of the company start using various technologies where it becomes essential for customers to
provide their personal details and payment information. This will assist them in order to prevent
from any kind of fraud and mis conducting activities from both the sides. It has been analysed
that collaborative model involves sharing, bartering, lending, gifting, leasing as well as renting.
Some of the most essential element are going to be discussed as follows along with some
examples:
Sharing Economy: It is define as a system which is mainly based on the ability as well as
preference of individuals in order to borrow or rent goods and services rather then purchasing
and owning them. For instance, there are various companies which provide different types of
services to their customers in order to satisfy there needs and wants (Gao, 2016). These
organisations includes Uber and Airbnb which is an app based system where they get driver
services along with using their own cars and on the other hand in case of Airbnb people allow to
get rented house and accommodations services to travellers.
Barter System: In context of Barter system, commodities, goods and services are being
traded at negotiated rates. These types of system requires mutual coincidence as well as
understanding between both seller and receiver. For example, there are various organisations sell
there goods and services and receive other goods. These are the systems which is mainly
followed by individuals in past years.
Gift economy: It is the economy where goods, services, products and commodities are
given to other individuals without any kind of agreement so that suitable trade and payment are
to be made in return in an effective and appropriate manner.
With the help of above mentioned systems or elements it has been identified that best and
most suitable method which is adopted are sharing economy. Along with this, by innovating new
technologies by the management team of Airbnb they will be able to attract large number of
individuals towards them. There might be both positive as well as negative impact of new
technology which is adopted by the managers of the company. In the present context of Airbnb,
management team of the company use scanning tool where government identification need to be
analysed by them before accepting any kind of reservation (Ghobakhloo and Azar, 2018). This is
the feature which is adopted by the managers of Airbnb which gives authenticity and reliability

to them about the customers. There is an innovative feature which is going to be launched by the
management team of Airbnb where a mobile application includes feedback review system. With
the assistance of this feature, hosts as well as guest both provide feedbacks to each other.
Literature review
The impact of new technology on collaborative consumption for Tourism.
According to the thought of Hitomi, (2017), it has been said that it is very essential for
an organisation to adopt new and upgraded technologies so that they can attract large number of
customers towards them. It has been said that by using new technology, various benefits will be
attained by both companies as well as by customers. Collaborative consumption define as the
method where multiple people buy a single commodity in order to fulfil their needs. For
instance, in the present context of Airbnb, it has been said that company provide various
accommodation services to their customers where they provide villas, flats, properties for their
customer's according to their requirements. These types of services mainly used by those
individuals who love travelling and acquire some accommodations in affordable prices. In
reference to Airbnb it has been said that new technology which is implemented by the
management team in order to review all the feedback and response in an effective manner send
by both staff members as well as guest. For this, a mobile application is developed by them so
that feedbacks will be given by them within few seconds. Along with this, such feedbacks and
review are evaluated by visitors before booking for the property. This will help them in order to
identify whether such type of accommodation services satisfy their needs and wants or not.
As per the views of Kafetzopoulos, Gotzamani and Gkana, (2015)it has been analysed
that there are both positive as well as negative impact which might affect the overall
performance of the company. Positive impact of adopting new technology might create various
opportunities to the collaborative consumption as they attract large number of customers. For
instance, if getting positive response from customers on a continuous basis, ample number of
visitors or travellers might get attracted towards the company which enhance their whole profit
margin. But on the other hand, adopting new technology might affect the overall goodwill and
reputation of the company at the competitive marketplace. Along with positive there are various
negative comments available there on the official website or application of the company. These

adverse reaction from travellers or visitors might reduce the overall profitability of the
organization.
Company strategies of development
For maintaining growth and development at the marketplace, there are different types of
approaches or methods used by the management team of an organization. With the help of these
approaches, managers will be able to develop or modify their current strategies and policies so the they
get maximum number of benefits. There are various types of strategies which might be adopted by
the top management team of the company. In the present context of Airbnb managers of the
company use STP model in order to perform their activities in an effective manner. STP
approach are as follows:
Segmentation: It is very essential for the management team of Airbnb to segment the
market and customers on the basis of some requirements (Liebowitz, 2019). It has been analysed
that each individual does not belong to every business organisation, therefore it is necessary to
segment the market according to the needs and wants of customers. In the present context,
managers segment the overall market on the basis of psychographic which includes values,
personalities, lifestyle, interest, opinions and many more.
Targeting: Apart from segmenting, it has been said that it is also very important to target
the customer's in an effective manner. In the present context of Airbnb, it has been said by the
management team that they generally target those individuals who travel on the regular basis.
They are the one who prefer villas or personal properties for the accommodation services.
Positioning: At the end of this model, positioning define as the method where company
position its services at the competitive marketplace. In the present context of Airbnb, it has been
said that managers of the company position their brand by providing range of products and
services to their customers by selling them in low price. For instance, Airbnb provide
accommodation services to their customers within moderate price where individuals get various
benefits. Along with this, multiple people will buy a single service and get access.
The Ansofff growth matrix is evaluated as the framework of the strategic
marketing that helps in providing guidance to the business operations throw which
they can easily grow and achieve success in their operations (Moutinho and Vargas-
Sanchez, 2018). The management team of Airbnb is using this model for enhancing

their thought related to the situations prevailing at the market place. This will result
in improving the strategies which can be used by firm in order to grow in their
operations. The framework consists of four factors which are evaluated below as;
Market penetration: At this point, the organization remain at existing market with the
existing product. They did not change their market as well as products & services. The main
motive is to develop and grow the business with its old product. In context to Air bnb, the upper
level authorities offers same product in the market of UK. Because the company has a good
reputation in market and their customers always remain loyal to them. This helps in improving
the sales performance as well as profitability of the company.
Product development: The organization need to launch new products at this point in
order to meet customer requirements and market trends. The new product and services attracts
more customers and gain market share. With reference to Air bnb, the manager needs to add new
services for customers so that customers uses its services more. It will help company to promote
its services effectively or in an feasible manner (Nicholas and Steyn, 2017). This will increase
the customer base if the company which in turns increase profitability of Air bnb. In addition to
this, attractive services builds reputation in the market which help company in gaining high
profits.
Market development: This is a strategy which is related with Airbnb in this strategy
company is willing to offer similar products in a completely new market. This can help the
company in offering products in the market. The company can use a completely different
segment of market to target their customers. They are using this Strategy by reduction of prices
that people who are willing to travel through flights but cannot afford them because of high
prices can choose Airbnb as their choice. This will lead to increase in overall profits of company.
Diversification: This is a strategy in which company is willing to offer a completely new
product in a new market. In this market and product both are new this is why this strategy is
referred as diversification strategy. Airbnb can use this strategy in making investment in
development of innovation by various offers and then using it to attract a new segment of
customers.
From the above discussion it can be concluded that Diversification will be the most
appropriate strategy in case of Airbnb in which they will be able to easily increase their sales tin
anew market.

Recommendations
With the help of above mentioned report, it has been said that researcher provide various
suggestions to the management team of organisation so that they can perform their task in an
effective manner (No, An and Park, 2015). In reference to Airbnb, various recommendations are
provided by the managers so that they will be able to conduct their business functions in an
appropriate manner. If these recommendations will be implemented properly within the
workplace then positive results will be gained by management team within stipulated time frame.
Some of the most essential recommendations are as follows:
 First of all it has been suggested to the managers of Airbnb that they must adopt sharing
economy in an appropriate manner along with following all the legal aspects in an
effective way.
 Apart from this, there must be adoption of new technologies according to the growth
strategies so that positive outcomes will be gained by the management team of Airbnb in
an effective manner. Just like they adopt diversification growth strategy therefore they
need to modify their strategies according to the strategy so that they gain maximum
number of results.
 Along with this, positive strategies as well as policies need to be developed by the
managers of organisation in an effective manner so that they can attract large number of
customers towards their organisation (Ratinho, Harms and Walsh, 2015).
CONCLUSION
With the assistance of above mentioned report, it has been analysed that technological
management plays very essential role in order to manage all the technologies and tools in an
effective manner so that positive outcome will be produced effectively. It has also been
identified that there are both positive as well as negative impact of adopting new technologies. In
case of positive impact, company will be able to attract large number of customers towards the
organisation but in references to negative impact, they will lose the profitability and goodwill of
the company at the marketplace. Along with this, there are some strategies used by management
team of Airbnb which includes STP model as well as Ansoff matrix model. Both these models
assist in the overall development as well as growth of the company.

REFERENCES
Books & Journals
Argote, L. and Hora, M., 2017. Organizational learning and management of
technology. Production and Operations Management. 26(4) pp.579-590.
Cetindamar, D., Phaal, R. and Probert, D., 2016. Technology management: activities and tools.
Macmillan International Higher Education.
Gao, P., and et. al., 2016. Automotive revolution–perspective towards 2030: How the
convergence of disruptive technology-driven trends could transform the auto
industry. Advanced Industries, McKinsey & Company.
Ghobakhloo, M. and Azar, A., 2018. Business excellence via advanced manufacturing
technology and lean-agile manufacturing. Journal of Manufacturing Technology
Management. 29(1). pp.2-24.
Hitomi, K., 2017. Manufacturing systems engineering: A unified approach to manufacturing
technology, production management and industrial economics. Routledge.
Kafetzopoulos, D., Gotzamani, K. and Gkana, V., 2015. Relationship between quality
management, innovation and competitiveness. Evidence from Greek
companies. Journal of Manufacturing Technology Management.26(8). pp.1177-1200.
Liebowitz, J., 2019. Building organizational intelligence: A knowledge management primer.
CRC press.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Nicholas, J. M. and Steyn, H., 2017. Project management for engineering, business and
technology. Routledge.
No, H. J., An, Y. and Park, Y., 2015. A structured approach to explore knowledge flows through
technology-based business methods by integrating patent citation analysis and text
mining. Technological Forecasting and Social Change.97. pp.181-192.
Ratinho, T., Harms, R. and Walsh, S., 2015. Structuring the Technology Entrepreneurship
publication landscape: Making sense out of chaos. Technological forecasting and social
change.100. pp.168-175.
Weaver, P., and et. al., 2017. Sustainable technology development. Routledge.
(Argote and Hora, 2017) (Cetindamar, Phaal and Probert, 2016) (Gao, 2016) (Ghobakhloo and
Azar, 2018) (Hitomi, 2017) (Kafetzopoulos, Gotzamani and Gkana, 2015) (Liebowitz,
2019) (Moutinho and Vargas-Sanchez, 2018) (Nicholas and Steyn, 2017) (No, An and
Park, 2015) (Ratinho, Harms and Walsh, 2015) (Weaver, 2017)