Premium offerings in the sharing economy: Authentic immersions. Issue 4 (17th August 2018)

• Record Type: Journal Article
• Authors: Richard, Brendan; Murphy, Jamie; Altin, Laura
• Is Part Of: Journal of revenue and pricing management. Volume 17:Issue 4(2018)
• Page Start: 244
• Page End: 255
• Publication Date: 2018-08-17
• Subjects: sharing economy -- luxury -- future -- scenario -- Airbnb -- Estonia; Revenue management -- Periodicals; Pricing -- Periodicals; 338.5205
• DOI: 10.1057/s41272-017-0093-1
• Languages: English
• ISSNs: 1476-6930

Abstract

Abstract Over the past few years the sharing economy has grown tremendously, driven in part by traveler desires for authentic and unique experiences. In response to these modern changes, peer-to-peer (P2P) marketplaces (e.g., Airbnb) are seeking additional revenue streams, expanding beyond room rentals into guided tours, recreational, and cultural experiences. Rather than act solely as sharing economy lodging establishments, in the near future providers will increasingly supply authentic and immersive vacation experiences, acting as a host, guide, concierge, and traveling companion to their guests. This paper explores the ability of P2P providers to command premium pricing for authentic and immersive P2P offerings. The paper details this possibility, listing drivers of change before positing a scenario that helps envision a future in which P2P providers seize this opportunity. Finally, the paper closes with limitations, practical implications, and future research recommendations.