The emergence of digital technology and disruptive innovation has been accepted globally by different manufacturing and service industries. As a follow up to the disruptive digital innovations, this paper is aimed to provide insights into the promise and peril of disruptive digital innovation and sharing economy, in particular as it affects the hospitality and tourism services. An extensive review of existing literature on digital technology, disruptive digital innovation, collaborative economy, smartphone technology, social media, internet and mobile applications, business-to-business (B2B), peer to peer (P2P), business-to-customer (B2C) from the perspective of hospitality, leisure, events management, travel and tourism were conducted and content analyzed. Findings suggest digital technology and sharing economy provide ten disruptive innovative promises in the hospitality and tourism destinations. Similarly, study shows digital innovation and sharing economy have several destructive or perils that are specific to hospitality and tourism industry. Implications of these findings to business stakeholders in hospitality and tourism, consumers (customers, tourists, guests, travelers), and industry policy makers are discussed.
In conclusion, this study has contributed to the scholarship of digital transformation and innovations in the digital era, in particular from the perspectives of digital disruptive innovation, technology advancement and sharing economy in the hospitality and tourism destinations.