Sharing for profit: A new business model?

This research note draws attention to the sharing economy (SE) business models in tourism. Tourism is one of the prime markets for peer-to-peer services that allow people to rent beds, prepare meals and offer rides to each other. This `new' economy, that is facilitated by online platforms, is said to radically change consumer behaviour and disrupt business-as-usual. Considering the importance of trust in the SE, we know very little about it. Studies have focused on the outcomes of trust including customer retention or the criteria with which customers evaluate the trustworthiness of a firm such as competence and benevolence. The question of how trust is built remains under- examined. Businesses operating in the `old' money economy use all but free revenue models, while the SE offers examples of free or nearly free services. Freecycle allows people to give away their unwanted items, and Leftoverswap meals.