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The Usage of Collaborative Economy in Tourism: Overview and Trends for European Countries

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The Usage of Collaborative Economy in Tourism: Overview and Trends for European Countries A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Ćurlin, Tamara; Jaković, Božidar; Miloloža, Ivan Conference Paper The Usage of Collaborative Economy in Tourism: Overview and Trends for European Countries Provided in Cooperation with: IRENET - Society for Advancing Innovation and Research in Economy, Zagreb Suggested Citation: Ćurlin, Tamara; Jaković, Božidar; Miloloža, Ivan (2019) : The Usage of Collaborative Economy in Tourism: Overview and Trends for European Countries, In: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Rovinj, Croatia, 12-14 September 2019, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb, Vol. 5, pp. 536-547 This Version is available at: http://hdl.handle.net/10419/207716 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by-nc/4.0/ www.econstor.eu ENTRENOVA 12-14, September 2019 Rovinj, Croatia The Usage of Collaborative Economy in Tourism: Overview and Trends for European Countries Tamara Ćurlin University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia Božidar Jaković University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia Ivan Miloloža University of Osijek, Faculty for Dental Medicine & Health, Osijek, Croatia Abstract Collaborative economy (CE) is the marketplace where individuals trade goods and services. With disruptive innovations as a key factor, CE has is reformulated strategies and methods of traditional global commerce and created new opportunities. Tourism and hospitality are the industries in which is CE used the most, especially at arranging accommodation and transportation. The purpose of this paper is to distinguish the state and trends of CE usage in tourism for European countries by comparing data obtained on Eurostat. In addition, results for accommodation and transport arrangement have been compared. CE usage in tourism has been compared to the frequency of internet usage of individuals in European countries to extract knowledge on factors which may influence on CE usage in European countries. In most countries, the percentage of CE usage in tourism is extensively increasing, which indicates that European travellers have recognised the benefits of CE practices such as more personalised offer and diversification. Results showed a correlation between CE usage in tourism frequency of internet usage and the level of digital skills for individuals from European. That could suggest that the biggest issue for CE development in European countries is poverty and infrastructure. Future research should focus on the empirical testing the correlation of the variables as well as extracting themes for CE usage in order to identify the factor of success in a specific country. Keywords: collaborative economy, disruptive technologies, tourism, European countries JEL classification: O32 Introduction The term „collaborative economy“ is often difficult to define because of its pervasion with terms “collaborative consumption,” „shared economy“ and „peer-to-peer economy“ (Dredge et al., 2015). However, few authors aspired to clarify the definition: Frenken et al. (2015) described the collaborative economy as the economy in which consumers provide other consumers temporary access to under-utilized assets (possibly for money). A year later, authors De Groen et al. (2016) expanded the definition by scrapping the temporary access and by introducing the concept of provision of services via auctions, which advanced the traditional concept of only counting the trade in under-utilized assets (Botsman et al., 2011). Nowadays, most authors agree that the collaborative economy can be defined as a marketplace 536 ENTRENOVA 12-14, September 2019 Rovinj, Croatia where, instead of big companies, consumers rely on each other to distribute goods and services (Celata et al., 2017). Botsman (2015) established the main criteria to distinguish collaborative economy: (i) Purpose of the business model is to extract value from sharing and trading goods and services in terms of financial or non-financial benefits. (ii) The main principle of collaborative economy lays in substantial values such as transparency, authenticity, and respect between providers on the supply side and costumers on the demand side (iii) The CE is the concept that provides customers access instead of ownership should bring more efficient benefit to both sides. (iv) Decentralised networks and distributed markets should make a sense of “community, collective accountability and mutual benefit (Petropoulos, 2017). There are two prevalent factors in collaborative economy practices: First, the non- ownership model with the ability of temporary access, sharing and borrowing consumer goods and services. Second, the extensive role of the internet. Information, communication technology and disruptive technology are the fundamental elements of CE processes, which provide us access to a world market from our homes, phones, and offices (Londoño et al., 2018). Collaborative economy and ICT The importance of the role of information and communication technologies in a collaborative economy is twofold: The Internet represents the fundamental source of information, so the marketing and attracting customers to buy or use their product is facilitated (Hamari et al., 2016). Furthermore, accessible data about costumers and competition enable creating personalized marketing and sale programs. ICT platforms coordinate transactions and have become globally dominant intermediaries and process a significant share of the (Day, 1994). Vast amounts of benefits are produced by the collaborative economy: It changes costumer behaviour, simplifies trade and transaction processes, administer employment, and encourages micro-entrepreneurship and disruptive innovation (Katsoni, 2019). Nonetheless, if it is not well regulated, CE is creating uncertainties. The collaborative economy models raise questions from safety, social inequality, employment law perspective, and from the rights and obligations perspective (Stokes et al., 2014). Therefore, regulations should be addressed in both international and local level primarily regarding employment, taxation, and data and privacy regulation. For instance, European Union legal systems have provided a classification for employment (self-employment and salaried employment) for collaborative employment, anyhow the definition of criteria vary for every EU member country based on the development of the given country (Nerinckx, 2016). Likewise, General Data protection Regulation for all individual citizens of the EU seeks to address the issue of data and privacy regulation (Gössling et al., 2019). Still, more regulations and laws on the global and local level should be developed in order to regulate, moderate, and organize collaborative economy practices to achieve even better results and development. The authors (Petropoulos, 2017; Vaughan et al., 2016) established four sectors that surfaced with the most powerful presence of collaborative economy models: (i) Accommodation: travellers can rent out properties or parts of properties through platforms. House swapping is a form of collaborative economy exchange as well. Examples are Airbnb, HomeAway, FlipKey, HomeStay, HomeSuite, Roomorama, Wimdu, and Stop Sleep Go (Frenken et al., 2017). (ii)Transportation: two categories of collaborative usage can be distinguished in terms of transportation: First platform concentrates on hiring vehicles such as cars, motorbikes, and bicycles (similar as rent- 537 ENTRENOVA 12-14, September 2019 Rovinj, Croatia a-car). Examples are ZipCar, EasyCar, car2go, Autolib, and Velib. The second group hires labor and human capital alongside vehicles. Examples are BlaBla Car, Uber, Bolt, Lyft. (iii) Online labor market: practice micro-tasking by matching human capital and employers. Examples: Amazon Mechanical Tusk, Adtriboo, TaskRabbit, Oltret- ata, Freelancer, Crowdsource, Crowdflower, and Clickworker. (iv) Finance: practice matching entrepreneurial projects with funders. Examples are Kickstarter and IndieGoGo. Collaborative economy in the tourism industry The sector in which collaborative economy models and platforms have seen the most significant growth is tourism and hospitality (González et al., 2019). The collaborative economy is becoming a more and more relevant source of new products and activities for the hospitality industry, especially for tourist who wish to avoid
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