The Collaborative Economy is the way to enable consumers to bypass the traditional market, transacting directly with suppliers that, in a final definition, are normal consumers, too. To achieve that, web platforms and mobile applications are the bridge to connect the two ends.
Also known as Peer-to-Peer Movement or Sharing Economy, the Collaborative Economy is defined by the Altimeter Group, cited by Frederic Gonzalo, as “an economic model where ownership and access are shared between corporations, start-ups and people. This results in market efficiencies that bear new products, services and business growth.”
Rachel Botsman says that “Sharing Economy is an economic model based on sharing underutilized assets from spaces to skills to stuff for monetary or non-monetary benefits.”
When it comes to Tourism, we can see that internet and mobility has changed drastically the sector operations, opening new opportunities for entrepreneurs all around the world.
Startups are benefiting from the way millennials are driving and leading the fast growing segment in the hospitality industry. By 2025, millennials will answer for 50% of all travelers. Tourism business will not be the same and sharing economy players are expected to change the way to do business.
In the recent years, a large number of startups came to the arena with impressive numbers in the Collaborative Economy. If we divide Sharing Economy and Tourism in four major areas, some of the players became well known companies in just a few years, like Uber and AirBnB.
According to eMarketer.com, Latin American clients are in the top of world users in terms of Sharing Economy, booking rooms and apartments using a Home & Lodging rental services by internet. It is expected to be the top market for AirBnB. Brazil has 50% of South American population and 50% of GDP. It is a market to be explored by startups on this field.
Recently, Rio de Janeiro hosted the Summer Olympics, with five other cities additionally receiving the football matches under the Games. It was a major event for the collaborative economy, with an extraordinary number of conversions in Brazil, with new hosts in many different cities.
As the economies in Latin America are facing difficulties, it is clear that new concepts of products and services through the apps platforms may boost what was known as the “informal economy”, with the high capillarity of smartphones and internet, paving the way for bringing in new players to the environment.