Airbnb in India: comparison with hotels, and factors affecting purchase intentions

Abstract

Purpose

The purpose of this paper is to understand Indian tourists’ perceptions of Airbnb compared to other hospitality options, and the factors driving their purchase intentions.

Design/methodology/approach

An integrated model for purchase intention was conceptualized based on the theory of planned behavior and social exchange theory. Constructs such as trust, authenticity, travel innovativeness, price sensitivity and effort expectancy were included based on a survey of the literature. Structural equation models were built using survey data. Respondent ranking of different criteria for Airbnb vs its competitors were aggregated using Borda count method.

Findings

Price is the most important criteria across hospitality choices, including Airbnb, except high-end hotels. Facilities, home-like feeling, trust and friendly service were important for Airbnb. Consumer expectations from Airbnb are similar to homestays, mid-range and budget hotels and different from resorts and high-range hotels. In the theory of planned behavior model, trust in Airbnb and perceived authenticity had large significant positive effects on purchase intention, mediated by attitude. Social norms and effort expectancy had direct positive effects on behavioral intentions. Price sensitivity had a direct small negative effect on purchase intention. Overall, fit of the model was within acceptable parameters.

Originality/value

Despite being an important emerging market, Airbnb in India has not been covered by studies of consumer behavior. This paper fills that research gap. Airbnb’s main competitors are home-stays and mid-range hotels. Building trust, creating authentic experiences and ensuring price competitiveness will drive adoption.

Citation

Chatterjee, D., Dandona, B., Mitra, A. and Giri, M. (2019), "Airbnb in India: comparison with hotels, and factors affecting purchase intentions", International Journal of Culture, Tourism and Hospitality Research, Vol. 13 No. 4, pp. 430-442. https://doi.org/10.1108/IJCTHR-05-2019-0085