Evolution warning: Are hotel owners in danger of becoming the new taxi drivers? By Peter O’Connor — Photo by Phocuswright

Just as the taxi industry responded to new competition by trying to manipulate governments in their favor, hotel chains are ganging up on travel industry innovators such as Airbnb and online travel agencies.

Sadly, just as cab owners ultimately paid the price for their sector's refusal to innovate, owners of chain hotels will ultimately pay the price for their brands' ongoing and increasingly expensive fight against progress.

The death of an industry

Do you remember travelling to a new city before Uber and Lyft? Most of us would rather forget!

Getting around usually involved attempting to hail a taxi, hoping the driver would agree to take you to your desired destination, and wondering if he would be kind enough to take the most direct route.

And, of course, you had absolutely zero control over any of these outcomes.

As a result, it's no wonder that transportation industry disrupters like Uber and Lyft have been so wildly successful.

Uber and Lyft took a rigid, non-customer centric product and made it cheaper, customizable, and more convenient. Instead of endlessly waiting for a taxi, your phone now tells you exactly when your car will arrive.

Instead of wondering whether the driver will agree to your destination, customers are guaranteed to go wherever they want, and instead of speculating how much the fare might potentially be, customers now know in advance exactly how much they will pay - and it's usually less than the cost of a "normal" taxi.

In the face of strong competition, savvy companies choose to innovate.

Read the full article at Phocuswright, Inc.

Eugene Ko
Sr. Manager, Marketing and Communications
+1 646 380-6273