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HOTREC ‘MEAL-SHARING’ PLATFORM POLICY PAPER – MAY 2018
Situation Analysis
03
3.1. Global Trends and Market
Conditions Foster Stable Pace of Growth
Within the scope of the ‘collaborative’ economy in travel and
tourism, a rather misleading impression of market conditions
emerges when comparing the volumes of funding rounds,
reservations and transactions made through online platforms
involved in ‘meal-sharing’ and the provision of home restaurant
services with those of their fellow cousins in short-term rentals
and ride-sharing.
Available data on startup valuations and total funding amounts
suggests that investment of platforms based on gastronomic
experiences (e.g. Eatwith, Withlocals) represents a tiny slice of
the valuations of well-known unicorns such as Airbnb ($29.3B)
and Uber ($68B). Thus, we might be ready to assume that home
restaurant operators could not compete with, let alone pose a
threat to regulated restaurants even in the absence of clear and
comprehensive regulations.
Nevertheless, the reality is different. In-depth knowledge of wider
considerations and impacts is necessary, because the growth of
‘meal-sharing’ and home restaurants over the last six years is far
from an independent phenomenon.
Firstly, it reflects the implications of the experiential paradigm
and the ubiquitous presence of technology across different
sectors of tourism. Secondly, it is expected to continue to evolve
insofar as food-sharing is a fragmented, yet dynamic sector of the
‘collaborative’ economy. Knowledge of these factors is essential,
both as a wake-up call for destination authorities, consumers and
hospitality businesses in Europe and as a basis for the introduction
and application of relevant regulations.
Food tourists are on the hunt for
authentic experiences or value
for money, or both…
‘Meal-sharing’ and home restaurants are closely bound to the
experiential travel trend due to the rapid expansion of numerous
platforms that offer tourists the opportunity to ‘eat like a local’,
often at unbeatable costs, in thousands of towns and cities
around the globe.
The link between food tourism and immersive experiences is
of great interest for destinations, as shown by the high share of
visitors’ spending in food and beverages (e.g. 40%of in-destination
spending in Barcelona)
1
. Besides visiting restaurants and cafes,
Besides visiting restaurants
and cafes, food and
beverage in tourism is
also shaping a brand new
culture where visiting food
markets and buying local
products, learning about
local recipes are becoming
some of the most popular
cultural activities among
contemporary travelers
food and beverage in tourism is also shaping a brand new culture
where visiting food markets and buying local products, learning
about local recipes are becoming some of the most popular
cultural activities among contemporary travelers
2
.
If home restaurant experiences are part of the same paradigm,
then we should expect that the price factor has a critical influence
on customer decision-making in a similar way to the case of short-
term accommodation rentals (STR) platforms
3
. This is precisely
what reported in 2015 the members of the Italian Federation of
Public and Tourist Operators, as 45% of them thought that the
price gap between the services provided by home restaurants
and regulated enterprises was higher than 20%
4
. The challenge
is significant, as restaurants in Europe are currently required to
enhance diversity and staff hospitality to reduce the regional gap
on value for money competitiveness
5
.
In this context, unfair competition within Europe is the last thing
regulated restaurants and cafes need: all destination authorities
should be aware of this double trap.