Booking preferences of tourists - Traditional commercial accommodations or Airbnb?

Abstract

THE AIMS OF THE STUDY

As a result of the digital revolution, new socio-economic trends can be observed, one such new phenomenon is sharing economy. One of the emblematic examples of this peer-to-peer economic model is Airbnb, which, 11 years after its foundation, is now one of the most important companies in the accommodation market and has become a major competitor to the most renowned hotel chains. In our study, we are focusing at consumers – in this case, those who travel abroad from Hungary - who are familiar with and open to Airbnb, and what are their preferences.

METHODOLOGY

In our online questionnaire survey, we asked 250 Hungarian residents who travel abroad. The sample is overrepresented in women with higher education in Budapest. During the data analysis, we used the method of cross-table, correlation and factor analysis.

MOST IMPORTANT RESULTS

93% of those traveling abroad have already heard of Airbnb. 42% have already taken Airbnb service, further 36% of the respondents are open to the service. Based on previous choices and future preference testing, we found that Airbnb has the highest loyalty factor. The most endangered segment is the former apartment and boarding house users, who are presumably switching to Airbnb in 50%, and nearly 40% of former hotel room users plan to use (also) Airbnb in the future if they are looking for accommodation in metropolitan areas. Further result in terms of consumer attitudes is that Airbnb is chosen by travelers for the best value for money, for renting the entire flat with multiple rooms, and for cooking possibilities. In contrast, the hotels are chosen by most people for safety, trustiness and breakfast’s and dinner’s availability at the hotel restaurant.

RECOMMENDATIONS

Further research is worth examining the threat of changing consumer preferences for traditional accommodation, the degree of competition between different types of commercial accommodation and Airbnb, the factors that different types of accommodation can increase consumers’ loyalty.

Acknowledgements: The research was supported by the Ministry of Human Resources under the New National Excellence Program (ÚNKP).