The entry of new platforms such as Airbnb and Uber have shaken up the industry. Many established players welcome the positive effect these platforms have on tourism, even if it forces them to up their game.

Dubbed the disrupters, platforms like Airbnb and Uber have met with some resistance from the trade. At this year’s Satsa conference, members of the trade asked whether these platforms should be regulated to level the playing field.

Regulation isn’t something either platform is opposed to. Uber Africa Spokesperson, Samantha Allenberg, says: "Uber is pro-regulation,” adding that the company wants to work with cities to create new regulations fit for the 21st century. She points out that regulations haven’t kept up with technology developments. “Many transport policies were drafted before smartphones and apps even existed and we’re looking to work with regulators to update regulation for the smartphone era.”

Allenberg says Uber has been engaging with policymakers in South Africa since its launch in 2013. “In May 2016 there was a huge step forward when the Gauteng Department of Transport began issuing operating licences to drivers using Uber's technology."

Airbnb doesn’t enforce regulatory compliance among users, but encourages it. Head of Middle East and Africa Communications at Airbnb, Lena Sönnichsen, says: “When hosts register on Airbnb, they must certify that they will comply with local rules before they list their space. At the same time, we are working with communities around the world to create fair, progressive rules for home sharing."

Federated Hospitality Association of South Africa (Fedhasa) CEO, Tshifhiwa Tshivhengwa, says while it isn’t necessary for Airbnb to have separate regulation, it should follow the already existing regulations that all accommodation establishments are following. “The regulations that govern hotels, B&Bs, guest houses, resorts and any other accommodation providers, including Airbnb, should be the same.” For example, he says all players must register as a business, register with SARS (SA Revenue Service), follow the municipal zoning laws and bylaws, follow health and safety procedures, and keep a register of guests.

He points out that some Airbnb users don’t follow these rules and don’t pay VAT to SARS. “As it stands now, some of the accommodation providers on Airbnb are operating illegally.”

However, while the industry wants a level playing field, many players are mindful of the positive effect these new platforms have played in growing tourism. Dieter Holle, Chief Information Officer at Tourvest Destination Management, points out that these platforms encourage more people to travel because they make travel more convenient.

Judy Lain, Chief Marketing Officer as Wesgro, says the likes of Airbnb and Uber have brought in a new traveller group who are looking for a different type of experience, and are now more willing to travel and spend money. “Their target market is looking for a truly unique and authentic experience with locals, and home stays offer this,” she says. She adds that these platforms can also increase limited capacity to meet demand.

However, both Lain and Holler point out that these platforms can eat into existing market share. Lain says that in mature markets, such as New York and Canada, Airbnb has resulted in loss of revenue for the traditional accommodation sector. “It’s becoming more difficult to ‘own’ the consumer from A to Z, but there are now more of them, which is a good development in the long term.”

Paul de Waal, Founder of Wetu, highlights the need for industry to adapt in the face of new disrupters. “We cannot go backwards and ‘put the genie back in the bottle’ so we – businesses and governments – have to find ways to work with them.” Likewise, Fanie van Zyl, MD of SA Coach Charters & Bus Rentals, says disrupters encourage the industry to keep up with technology, develop new concepts and move beyond conventional thinking. “It will also shake the industry and clear it of non-performers.”

Rory Montgomery, Executive Director at Hospitality Technology International, agrees: “This disruption creates an awareness of what technology can do to enhance any business.” As a technology provider, he also welcomes the move online that accompanies this development. “This has not been all bad for us tech providers who have spent many years consolidating our fully integrated solutions. We are now seeing growing interest and a move towards online, mobile and more robust applications.” He adds that he would encourage strategic partnerships and integration with these platforms.

Like De Waal, Montgomery emphasises the need to work with them. “Although we still have an important relationship with our tour operator and travel agent partners, all third-party relationships are essential to the success and strategic direction for hotels and lodges globally. Ignoring new entrants today would be akin to ignoring the OTAs a few years ago.”

While Uber hasn’t negatively impacted his business, Van Zyl says his company is cognisant of the development. “It reminded us that if you do not develop creative ideas, someone else will take your position in a radical way.” Van Zyl is also developing similar platforms for coach operators. Still at a conceptual phase, TourBusSA will be an online platform that gives operators and agents the ability to book buses and coaches online.