Sharing economy spurs hotel investment in tech, loyalty programs

Competition from Airbnb, HomeAway and other sharing economy businesses that offer alternative accommodations is prompting hotels to beef up their marketing technology and loyalty programs.

In a survey by the organizers of Travel Technology Europe, a conference February 21 to 22 in London, 50% of respondents said they are investing in both of those categories in response to the growth of the sharing economy.

Additionally, 33% said they are investing in customer experience solutions and 17% are updating their accommodations.

.Further, 17% said they are not doing anything as a result of competition from these relatively new lodging options. 

“For too long hotels have said they are ‘technophobes,’ but sadly this doesn't wash in the modern age, and it is great to see that the study has shown that hoteliers are investing in themselves and their own marketing activities and supporting technology,” says Steve Lowy, chair of the Hotel Marketing Association and Travel Technology Europe Advisory Board.

Nearly half – 43% - of respondents view the sharing economy as an opportunity while, 14% see it as a threat. 

The survey was conducted in December and includes responses from 135 travel buyers.