The rise of Airbnb, the website that allows homeowners to rent out properties to travellers, is starting to "fundamentally" change the hotel sector, the Advantage conference in Dubai has heard.
Speaking about Airbnb and other topics was a panel which included GTMC CEO Paul Wait, ABTA chief executive Mark Tanzer and Advantage Travel Partnership corporate director Ken McLeod.
Tanzer said the travel industry must adapt to deal with "disruptive influences" like Airbnb, which featured in BBT's Hot List 2014.
Airbnb is currently fighting a legal battle in New York after the state claimed users are illegally renting out their properties on the site.
"Look at the music industry when [illegal music sharing site] Napster came along, the Recording Industry Association of America (RIAA) took them to court and tried to close them down, but what that did was give them added publicity and drove more people towards it," said Tanzer.
"This model is fundamentally changing and affecting the industry. We shouldn't try and stop it because it's the traveller that is driving it and it's up to the sector to respond to this change."
Wait agreed that these new operators were having an influence on the accommodation sector but said the risk involved in using a service such as Airbnb would be too much for many travellers.
"The public will only take a risk once, let's not believe all this price propaganda and not lose sight of the way people buy," Wait said.
"You still need that advice from someone who is knowledgeable about your destination. I'm amazed how many people use Trip Advisor - why not use someone you trust?"
"UK PLC"
The conference heard how travel avoidance during the recession has harmed "UK PLC" and those companies that chose travel avoidance are now the businesses "worse off".
"Business travel is not a cost but an investment", said Wait. "A few years ago travel in a company moved to procurement and finance so when the recession hit, business travel started to get killed off.
"We must promote it more in the market place. If you don't travel then you don’t trade and those businesses that didn’t travel are now worse off."
APD
The panel also spoke about the "very negative" effect scrapping APD in an independent Scotland could have on some UK airports, as travellers close to the Scottish border may be encouraged to use Edinburgh and Glasgow airports to cut costs.
However, Wait urged CFOs to reinvest any money made from cuts to APD back into the business and into the travel spend budget.