Airbnb’s effect on hotel sales growth [Summary]

Abstract

The research has managerial implications regarding the hotel industries and the disruptive business. For the research, it imposes the longitudinal data and mixed model methodology more importance than previous cross-sectional data and a before/after entry design. Moreover, though Airbnb insisted that their customer target does not overlap the hotel’s, the analysis shows that the effect of Airbnb on hotel sales is complex. Airbnb supply does not affect hotel sales but the average price of Airbnb affects hotel RevPAR positively. Also, as the higher Airbnb user ratings are, the lower hotel’s RevPar from a substitution effect. Lastly, the effect of Airbnb by scales on the hotel is not uniform across all kinds of hotels. Lower scale hotels are more impacted than the luxury scale hotel.