Question

The arrival of Airbnb to Malaysia has make changes on the short-term vacation rentals, which should be better for Malaysia, and/or is Airbnb killing the Hospitality industry or will eventually kill the industry? Discuss the solutions or recommendations to benefit both Airbnb and Tourism industry in Malaysia

Answer 1

In my opinion, the arrival of Airbnb to Malaysia should be better for Malaysia since it has resulted in the further development of tourism industry in Malaysia and streamlined it as well. There would be a consolidation of many small players in the tourism industry after the arrival of Airbnb which would help in removal of fragmented industry and make it more consolidated and strong. The bargaining power of the industry players would be more after Airbnb's arrival and the industry would further develop and prosper. The solutions for further development of tourism industry in Malaysia are:

1. Consolidation of players: The players in the industry would be more consolidated and must work together for upliftment of tourism industry.

2. Increase bargaining power: The players in the industry must increase their bargaining power by having a strong presence in the industry and working together to achieve their targets and goals.

3. Pricing after discussion and consultation: The ticketing and stay prices must be decided by individual players after suitable consultation with each other so that the chances of price imbalance is not there and parity is maintained.