Evaluation of the Impact of Sharing Economy on Hotel Business

Abstract

The sharing economy is growing in the hotel industry very fast. The study is important for the hotel’s management - strategy formulation. The aim of this research is to evaluate the sharing economy effect on hotels in Lithuania. Correlation and regression analysis methods were used for achieving the aim. The study analyses if the sharing economy has caused any impact on accommodating tourists at hotels, hotels income from accommodation services, and room occupancy rate. Results reveal a positive relationship between the sharing economy and all investigated indicators of hotel activities, thus indicating that the hotel business is growing together with the sharing economy. The hotels' sector in Lithuania has continued to grow while more and more hosts and consumers joined the sharing economy. Results imply that the sharing economy is not a competitor for the Lithuanian hotels business as the sharing economy targets different tourist segment, moreover the market is capacious for both segments. Sharing economy in the accommodation sector – a niche with its own customer group. The research results are important for making correct decisions in the Lithuanian tourism industry as other researches in other countries show a negative impact on the sharing economy on the hotels' sector. The rapid growth of the sharing economy in Lithuania may oblige hotels to focus on the sharing economy and consider further actions.