DOI: 10.5176/2251-1970_BizStrategy18.118
Authors: Janet Chia
Abstract: Being one of the top tourist destinations in Asia Pacific, any changes in Singapore’s travel and tourism industry which would potentially reshape its competition environment, would naturally bring about concerns from regulators and market watchers. Any impact of changes in the industry on Singapore is multi-faceted and thus affects not only the economy, but also the industry’s value chain as its stakeholders are largely interdependent. However, equally important is the business' ability to strike a balance between economic, social and environmental sustainability in order to sustain its long-term operations. Therefore, this paper seeks to fill the gap and examine the extent in which sustainability plays a part in its business case as to how disruptive innovations displace or complement competition policy in Singapore. Particularly in this case, one of the best-known disruptive innovations - Airbnb, is being examined against the incumbent hotel industry through analysing the benefits, drawbacks and challenges from a sustainability aspect of the disruptive innovation against Singapore’s market conditions, environment and regulatory framework on home sharing. The paper also draws valuable lessons from the case studies of home sharing disruptive innovations in Berlin, Japan and Spain, in order to create a vibrant and sustainable competitive environment in the market as the way forward for Singapore.
Keywords:Disruptive Innovation, Sustainability, Singapore, Internet, Airbnb, Hotels, Competition, Competition Policy, Tourism, Retail, Regulations, Home Sharing, Accommodation, Tourist, Business Travellers
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