a process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. Summed up: newer eliminates older. Consider the computer industry and how companies like Microsoft, Intel and Apple made computing smaller and destroyed many mainframe computer companies in the process.
The hotel industry should heed Mr. Schumpeter’s warning. While travelers will always need a place to stay, their options continue to multiply, with nontraditional lodging alternatives, such as Airbnb and other home-sharing sites, continuing to eat into demand and market share.