What is your first action when you are in the market for a lamp, a summer coat or even a car? For more and more people the answer is “I go online”. We all do research, compare prices and study reviews of the product that we have our heart set on. And we do it online…
The same is the case for people in the market for a vacation. They too are interested in an easy and transparent buying process, that assures them that they are making the right choice.
The good news for Danish tourism industry is that it is doing better than many other industries, reaching an online turnover of 26 % - just above average in Danish business community. Looking to other European countries for comparison, England, Belgium and Norway are doing better. Looking to the consumer’s needs - the tourism industry really needs to step up.
Danish Holiday homes up for rent on foreign platforms
A major disruption of the tourism industry lurks in the horizon. As already seen with industries like transportation and music, a digital revolution is on the way. New business models emerge, users themselves are getting involved, letting the business benefit from their own creation of content. Of course, it has a name: Airbnb.
At the moment 156 rentals are available in Blåvand on Airbnb during week 28. Some are summer cottages, other are people’s private homes. Private house owners can easily manage the rental service themselves. They don’t need any intermediaries, and Airbnb charges only a 3 % fee on each reservation. All the house owner needs, is a neighborhood co-host, if he/she lives far from the holiday house. Of course, Airbnb facilitates this. Or the house owner could just install a key box. Once the owner has made an agreement with a professional cleaning service success awaits, as Airbnb handles the marketing.
The world’s largest accommodation platform Booking.com has already made its entrance to the Danish market and lets you choose from 319 available holiday homes (from e.g. Dancenter and SologStrand) in week 28 in Blåvand. For a house owner that too could be interesting with a commission fee of around 15 %. Great marketing reaching a global audience and a support-team available around the clock are among the benefits of a registration with Booking.com.
No need to give up
Should Danish tourism industry just throw in the towel already? Definitely not:
- use your knowledge of the consumers and house owners to create a strong product
- remember that all customers like simplicity and personalization
- personalization does not need to involve persons. Instead think SaaS - Software as a Service
And please reach out if you need a hand :-)
Source: DI Business ”E-handel: Danske overnatningssteder kun i europæisk midterfelt” (March 27th 2017).