Vacation rentals in San Francisco, USA: a positive or negative disruption?

Abstract

Purpose

Vacation rentals (VRs) are growing in popularity and have disrupted the lodging industry. But they are also controversial because they can literally disrupt quiet residential neighborhoods. There is little research on users of VRs.

Design/methodology/approach

An online survey of 10,000 festival attendees in San Francisco determined if they stayed in VR or commercial lodging and their spending. A second survey of 402 respondents who stayed in a VR asked about their motivations for renting a VR and their evaluation of the experience.

Findings

Results showed users of VRs were motivated by low cost, a convenient location and the nature of the neighborhood. VR user groups were more likely to rent high-end properties, than commercial users. But on a per-person per-day basis, VR users spent $183 on lodging, compared with $264 spent by those opting for a CL. Over half of the respondents stated that the availability of VRs increased the likelihood of them attending the event.

Practical implications

Results suggest that VRs help cover housing costs of VR owners and provide a desired, unique and low-priced lodging opportunity, which can encourage attendance at events. But VRs have both positive and negative disruptive impacts, and more regulation is coming in high-profile urban tourist destinations to mitigate negative effects.

Originality/value

This study consists of original research into VRs, which is a rapidly evolving component of hospitality industry.

Citation

Tierney, P. (2019), "Vacation rentals in San Francisco, USA: a positive or negative disruption?", Worldwide Hospitality and Tourism Themes, Vol. 11 No. 2, pp. 121-129. https://doi.org/10.1108/WHATT-11-2018-0080