How do consumers select between hotels and Airbnb? A hierarchy of importance in accommodation choice
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abstract
PurposeThe 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/approachThe 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.FindingsThe 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/implicationsThe 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/valueExtant 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.
