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How do consumers select between hotels and Airbnb? A hierarchy of importance in accommodation choice

Makarand Amrish Mody (School of Hospitality Administration, Boston University, Boston, Massachusetts, USA)
Sean Jung (School of Hospitality Administration, Boston University, Boston, Massachusetts, USA)
Tarik Dogru (Dedman School of Hospitality, Florida State University, Tallahassee, Florida, USA)
Courtney Suess (Department of Recreation Parks and Tourism Sciences, Texas A&M University, College Station, Texas, USA)

International Journal of Contemporary Hospitality Management

ISSN: 0959-6119

Article publication date: 15 July 2022

Issue publication date: 31 March 2023

2358

Abstract

Purpose

The purpose of this study is to examine the impact of key decision-making attributes on consumers’ choice of accommodation among and between hotels and Airbnb.

Design/methodology/approach

The study used a choice-based conjoint approach using 21 key decision-making factors that impact consumers’ choice of accommodation across five segments ranging from economy to luxury. Latent class estimation was used to identify segments of respondents who tend to have similar preferences for accommodation.

Findings

The results showed the presence of a consistent pattern of decision-making across the five accommodation segments, culminating in a hierarchy of importance in accommodation choice. The 21 key decision-making attributes comprised three tiers in order of decreasing importance: quality and service, amenities, and accessibility and safety. Further, latent class analysis indicated the presence of a hotel group and an Airbnb group of customers, which allowed us to identify how both types of providers might maximize the value of their offers to encourage customer switch.

Research limitations/implications

The accommodation landscape is extremely dynamic (particularly as the COVID-19 pandemic unfolds) and complex. The present study cannot capture all of its intricacies but provides an invaluable foundation for future research on the topic of consumer choice in an evolving and competitive accommodation market.

Originality/value

Extant research on accommodation choice has focused on hotels or Airbnb only. Moreover, research that has considered both types of accommodation simultaneously is limited in its conceptual and methodological scope. The present study synthesizes the fragmented literature on consumers’ accommodation choices and offers a holistic and coherent schematic – the hierarchy of importance in accommodation choice – that can be used by future researchers and practitioners alike.

Keywords

Citation

Mody, M.A., Jung, S., Dogru, T. and Suess, C. (2023), "How do consumers select between hotels and Airbnb? A hierarchy of importance in accommodation choice", International Journal of Contemporary Hospitality Management, Vol. 35 No. 4, pp. 1191-1218. https://doi.org/10.1108/IJCHM-12-2021-1551

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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