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Adding evidence to the debate: Quantifying Airbnb's disruptive impact on ten key hotel markets
Abstract
Airbnb's entry into the lodging landscape has dramatically increased the available supply of rooms for accommodating prospective visitors at a destination. In a competitive market, an increase in supply while keeping demand relatively constant would decrease prices and revenues. While Airbnb is expected to negatively impact the hotel industry, the effects of Airbnb on the performance of the hotel industry have not been extensively quantified. Also, existing studies on Airbnb's economic impacts are limited in their inferential, temporal, and/or geographical scope. In view of this gap in the literature, the present study examines the effects of Airbnb supply on key hotel performance metrics: room revenues (RevPAR), average daily rates (ADR), and occupancy rates (OCC) in ten major U.S. hotel markets for the period between July 2008 and June 2017. The results demonstrate that an increasing Airbnb supply negatively impacts all three performance metrics within the hotel industry. Moreover, while previous research has demonstrated a negative impact on lower-end hotels, our findings provide evidence of Airbnb's growing impact on the mainstream market across hotel class segments, signaling a high level of consistency with the tenets of the theory of disruptive innovation. The magnitude of these effects is not only statistically but also economically significant. Theoretical and practical implications are discussed.
... These POIs include catering services, tourist attractions, and shopping malls (Gao et al., 2022;Han et al., 2023;Sainaghi & Chica-Olmo, 2022;Voltes--Dorta & Sánchez-Medina, 2020). Despite the disruptive effect of shared accommodations on the traditional lodging industry (Dogru et al., 2019;Gunter et al., 2020;Guttentag & Smith, 2017), which should reflect unique locational characteristics, the POIs affecting shared accommodations often mirror those influencing traditional accommodations. Additionally, most studies concentrate on a limited range of well-documented POIs, rather than exploring a broader spectrum to identify POIs uniquely affecting shared accommodations. ...
... As a disruptive innovation (Dogru et al., 2019;Gunter et al., 2020;Guttentag & Smith, 2017), shared accommodations are expected to be associated with unique POIs or configurations distinct from those linked with traditional lodging. However, the conventional POIs identified in previous studies do not fully capture the disruptive traits inherent in shared accommodations. ...
This study proposes a three-step analytical framework to examine the proximity between Airbnb listings and points of interest (POIs), and to evaluate the spatial dependence between them across dimensions. Grounded in Tobler's first law (TFL) of geography, this framework integrates standard deviational ellipse, average nearest neighbor, and geographically weighted regression methods. The framework is validated using data from 14 U.S. cities of varying sizes, encompassing 122,005 Airbnb listings and 113,169 POIs. Although the results reveal a notable proximity of Airbnb listings to POIs, the degree of spatial dependency varies across cities and property types. Notably, several frequently overlooked POIs, such as schools, post boxes, bakeries, and bicycle rental stations, demonstrate significant relationships with Airbnb listings. This research advances the literature on shared accommodations by elucidating the spatial relationship between Airbnb and POIs, introducing new location factors, and providing a robust analytical framework. The findings provide valuable practical implications for enhancing business and management strategies for Airbnb stakeholders, while balancing the growth of the shared accommodation sector against its effects on local communities.
... The rapid expansion of sharing economy providers has impacted traditional businesses dramatically and disruptively (Chasin et al., 2018;Pan and Qiu, 2022). Research shows that the entry of sharing platforms has changed existing pricing systems and negatively affected the performance of incumbent firms (Dogru et al., 2019;Guo et al., 2018). Although the rapid development of sharing economy platforms helps reduce time for information search, the entry of these platforms also leads to decreases in the prices of products and services offered by existing businesses. ...
... The introduction of home-sharing platforms can lead to a significant decrease in rental housing commission fees and prices, leading to revenue loss and increasing survival pressure on traditional hotels (e.g. Dogru et al., 2019;Sainaghi and Baggio, 2020). ...
Purpose
Despite a growing body of research focusing on the dark side of sharing economy development, arguments are fragmented and incomplete. This study aims to address the gap by integrating existing viewpoints based on a provider’s perspective.
Design/methodology/approach
This study conducted a bibliometric analysis using text mining and clustering algorithm techniques to measure the scope of scientific output on this topic and identify the main research themes.
Findings
Through the bibliometric analysis, this study developed an integrative framework based on the platform providers’ internal management issues and external conflicts with consumers, society, government regulations and traditional business. It also identified significant gaps within each research theme and proposed a future research agenda.
Originality/value
Sharing economy development has not yet been fully understood and regulated, leading to unprecedented challenges to existing business systems. The study addresses knowledge gaps and advances the understanding of the dark side of the sharing economy based on the provider’s internal management and interplay with external forces. It offers a roadmap for future research to advance understanding of the “hidden” dark side of the sharing economy.
... In prior research, empirical evidence has been reported about the negative impacts of environmental dynamism on business operations and the performance of firms in various sectors. For example, Dogru et al. (2019) analyzed the role of environmental dynamism on the performance of firms in the hotel industry in ten major US cities, and their findings revealed that a surge of dynamism negatively affected the business performance of these firms. Similarly, Wang (2018) explored the effect of environmental dynamism on the operational performance of firms in the logistics industry, and his findings confirmed the negative effect of dynamism on the operational performance of these firms. ...
... In particular, we found that social media agility positively correlated with business performance to a higher extent when firms operated under low environmental dynamism than when they operated under high environmental dynamism. This result supports prior literature that regards environmental dynamism as an unfavorable business environment that creates obstacles for successful strategic planning and execution (Dogru et al., 2019;Wang, 2018;Slagmulder and Devoldere, 2018). The finding is in accordance particularly with the results from the study by Reed (2021) demonstrating that a high level of environmental turbulence significantly reduced the positive effect of strategic agility on firm performance. ...
Purpose
Despite the increasing numbers of research studies about social media business, the concept of social media agility is still an emerging topic that has been understudied. Therefore, the purpose of this study was to investigate the effect of social media agility on business performance by using a sample of small- and medium-sized enterprises (SMEs) in Thailand. Moreover, this study explored whether the effect of social media agility on business performance could be moderated by the characteristic of firm in terms of size, as well as the characteristic of market environment in terms of environmental dynamism.
Design/methodology/approach
The sample of 337 firms was obtained from the business directory using the simple random sampling method, and the model assessment was performed by using partial least squares structural equation modeling.
Findings
The data analysis indicated that social media agility positively affected the business performance of SMEs. Moreover, the moderating effect analysis showed that smaller firms tended to gain higher business performance from social media agility than larger firms. In addition, social media agility positively affected business performance to a greater extent when firms operated under low environmental dynamism than when they operated under high environmental dynamism.
Practical implications
Because SMEs are the key driving of economic development and economic growth, the recommendations from this study could be helpful for the government sector responsible for the competency development of SMEs to offer a development program that might enable entrepreneurial firms to develop social media marketing competencies and enhance their potential to be successful in the digital transformation.
Originality/value
The authors found new evidence showing that the degree to which social media agility affected business performance depended significantly on the firm characteristics in terms of firm size, as well as the environmental factor in terms of environmental dynamism. These findings provide valuable contributions to the existing literature that still lacks evidence about the moderating conditions that could increase or reduce the benefits that firms obtain from social media agility.
... In the last decade, the focus of scholars and literature has shifted towards regulation, investment and the access economy. This shift in focus has been facilitated by the works of major scholars such as Dogru et al. (2019), Famsworth (2018), Jefferson-Jones (2014), and Koh and King (2017). Belk (2007) and Botsman and Rogers (2010) are considered pathfinders in shaping research on tourist accommodation and have developed two perspectives: access over ownership (Belk 2007) and collaborative consumption in tourist accommodation literature (Botsman and Rogers 2011). ...
... The popularity of short-term rental accommodations, such as Airbnb, has led to a significant increase in tourists visiting various destinations, including cities and rural areas. This, in turn, has had a positive impact on the local economy through increased guest spending in the form of purchases at local shops, restaurants and other businesses (Dogru et al. 2019). Studies have shown that guests staying in short-term rentals tend to spend more in the local area compared to those staying in traditional hotels (Monahan 2021). ...
The discourse on microentrepreneurs and their involvement in the short stay market (SSM) was non-existent until 2008. While several concepts and constructs have been developed and empirically tested since 2009, many of them relate to economics, leaving the social, cultural, and environmental factors underdeveloped. Thus, this study aimed to fill the gap and identify and assess the social impact of the short-stay market (SSM) in a regional area. The study included 16 face-to-face interview sessions conducted with 18 participants, and the Leximancer software was employed to analyse the data. The study revealed that the social impact on SSM is not generic, rather pluralistic, multidimensional, and dynamic. The study also found that the limitation clause instituted by the council is a direct disconnect between the council and property owners/managers. Furthermore, despite ample opportunities provided by the short-stay market (SSM) in regional areas, encumbrances cannot be overlooked. Therefore, there is a need for a comprehensive approach to understand the social impact on policy frameworks in regional areas.
... Hoteliers largely view other hotels as their primary competitors, while Airbnb hosts consider both hotels and other short-term rentals as competitive threats. This aligns with Dogru et al. (2019), who identified Airbnb as a significant competitor that pressures hotels to modify pricing strategies and adjust service offerings. The increase in Airbnb listings can impact the average daily rates (ADR) and revenue per available room (RevPAR) of hotels, as observed by Zervas et al. (2017) in Austin and by Bení tez-Aurioles (2019) in Barcelona. ...
The expansion of short-term rental platforms like Airbnb and HomeAway has reshaped the hospitality sector, introducing competitive pressures for traditional hotels and influencing local communities in Greece. This study examines perceptions among 343 hoteliers and 277 Airbnb hosts across Greece, focusing on economic, competitive, and social impacts of Airbnb-type accommodations. This cross-sectional study used structured questionnaires to assess views on Airbnb’s contribution to tourism, competition, and economic performance. Results reveal significant differences in perceptions: hoteliers expressed concerns about increased competition and regulatory inequalities, often viewing Airbnb as a mixed or negative influence on local tourism. In contrast, Airbnb hosts perceived their accommodations as beneficial for tourism growth and local economic support. Key areas of divergence included perceived competitive pressures, impact on overnight stays, and pricing strategies, with Airbnb hosts reporting more frequent economic benefits. These findings emphasize the need for a balanced regulatory approach to ensure fair competition and sustainable growth in Greece’s tourism sector. By comparing the perspectives of traditional and alternative accommodation providers, this study provides insights for policymakers seeking to address evolving challenges in the Greek hospitality landscape.
... The concept of the "sharing economy" and "collaborative consumption" may encourage cooperation and sustainability (Heinrichs, 2013), with the potential to support key elements of the United Nations Sustainable Development Goals (SDGs) (Lutz and Angelovska, 2021). However, organizations like the OECD (n.d.) and academics increasingly discuss the challenges of the sharing economy for sustainable tourism growth, especially when it comes to Short-Term Rentals (STRs) and associated platforms such as Airbnb and Vrbo (Arias-Sans and Quaglieri, 2016; Benitez-Aurioles and Tussyadiah, 2020;Dogru et al., 2019;Dogru, Hanks, et al., 2020;Franco and Santos, 2021;Hazée et al., 2019;Lee, 2016;Lutz et al., 2018;Murillo et al., 2017 ;Rojanakit et al., 2022 ;Stergiou and Farmaki, 2020). STRs represent a shift towards sharing rather than owning goods and services (DiNatale et al., 2018) but STR platforms have been criticized for disrupting housing availability, reducing the quality of life for long-term tenants, increasing house prices, and transforming neighborhoods into tourist destinations, potentially eroding the local sense of community (Gössling & Michael Hall, 2019). ...
This proceedings document presents the outcomes of THE INC 2024, an international conference focused on Technology Enabled Competitiveness and Experiences in Tourism, Hospitality and Events. Held in Amsterdam, the conference is organized by ATHENA (Association of Tourism, Hospitality and Events Networks in Academia), an international research association formed in 20221
The proceedings include:
Conference Overview
Details about ATHENA and THE INC's history and mission
Organizing and Scientific Committees
Keynote speakers and their expertise
Research Contributions
Abstracts of presented papers
Special issues and supporting journals
Conference Structure
Program schedule
Presentation sessions
ATHENA panel discussions
Awards and Recognition
Paper awards for outstanding contributions
The document highlights the conference's aim to promote tourism-related research through high-quality papers, presentations, and networking opportunities. It showcases the international collaboration between 27 research centers from 16 countries, emphasizing the global nature of tourism, hospitality, and events research1
This proceedings serves as a comprehensive record of THE INC 2024, offering valuable insights into current research trends and innovations in the field of tourism, hospitality, and events management.
... The concept of the "sharing economy" and "collaborative consumption" may encourage cooperation and sustainability (Heinrichs, 2013), with the potential to support key elements of the United Nations Sustainable Development Goals (SDGs) (Lutz and Angelovska, 2021). However, organizations like the OECD (n.d.) and academics increasingly discuss the challenges of the sharing economy for sustainable tourism growth, especially when it comes to Short-Term Rentals (STRs) and associated platforms such as Airbnb and Vrbo (Arias-Sans and Quaglieri, 2016; Benitez-Aurioles and Tussyadiah, 2020;Dogru et al., 2019;Dogru, Hanks, et al., 2020;Franco and Santos, 2021;Hazée et al., 2019;Lee, 2016;Lutz et al., 2018;Murillo et al., 2017 ;Rojanakit et al., 2022 ;Stergiou and Farmaki, 2020). STRs represent a shift towards sharing rather than owning goods and services (DiNatale et al., 2018) but STR platforms have been criticized for disrupting housing availability, reducing the quality of life for long-term tenants, increasing house prices, and transforming neighborhoods into tourist destinations, potentially eroding the local sense of community (Gössling & Michael Hall, 2019). ...
The transformation of customer decision journey through ChatGPT:
an analysis to the event sector
Abstract:
This paper investigates the impact of ChatGPT on customer decision-making processes throughout various stages of the customer journey applied to the event sector. By analyzing how ChatGPT technology influences consumer behavior from awareness to post-purchase evaluation, this study aims to provide insights into the evolving role of artificial intelligence in shaping customer experiences. Through a combination of theoretical frameworks and empirical research, the paper explores how ChatGPT enhances information dissemination, personalization, and engagement at each stage of the customer journey. Furthermore, it examines the implications of ChatGPT integration for businesses seeking to optimize customer interactions and drive conversion rates. By shedding light on the interplay between ChatGPT influence and customer decision-making dynamics, this research contributes valuable perspectives to the fields of Generative AI marketing, technology, and consumer behavior in the vibrant sector of events.
Keywords: ChatGPT, Generative AI marketing, consumer behavior, customer journey, decision-making
Introduction
... Ils induiraient la création de nouveaux emplois dans les secteurs non hôteliers (restaurants, attractions, spectacles, arts…) suite à une demande accrue (Fang et al., 2016 ;Dogru et al., 2020). Ces hébergements auraient également un effet positif sur l'emploi du secteur de l'hébergement de l'industrie hôtelière de Londres, Paris, Tokyo et Sydney (Dogru et al., 2020), bien que, sur certains marchés étasuniens, une offre croissante des annonces affecte négativement les indicateurs clés de performance des hôtels à savoir, les revenus par chambre, les tarifs journaliers moyens et les taux d'occupation (Dogru et al., 2019). Une recherche sur l'Idaho montre qu'au fur et à mesure qu'Airbnb prend de l'ampleur, son effet, d'abord marginal, s'intensifie et les hébergements proposés concurrencent les hôtels bas de gamme dont les emplois perdus ne seraient pas remplacés (Fang et al., 2016). ...
La plateforme Airbnb constitue une des avancées les plus significatives et transformatrices du sec-teur touristique. La majorité des études sur la plateforme porte sur son expansion et ses impacts dans les villes touristiques alors qu'elle implique également les espaces ruraux. En plus d'offrir une visibilité à des destinations touristiques moins évidentes, elle soulève de nombreux défis en matière d'accueil, de cohabitation, d'équipements et d'identité de ces espaces. Nous vérifions à l'aide d'une enquête en porte-à-porte dans huit villages wallons (N = 198), si les impacts identifiés en milieux urbains concernent également les campagnes et s'ils sont perçus différemment en fonc-tion des caractéristiques des habitants (localité, âge, durée de résidence, genre, statut d'occupation du logement, conscience de la présence d'Airbnb dans le village, connaissance de la plateforme Airbnb, statut d'hôte Airbnb, recours aux Airbnb, besoin en règlementation). Une analyse des cor-respondances multiples (ACM) met en évidence une dépendance entre la perception des impacts et la densité des locations à court terme dans le village. L'analyse souligne également le rôle des bénéfices personnels. De plus, des typologies de zones rurales se dessinent en matière de perception notamment celles déjà « touristifiées » et celles qui sont en passe de le devenir. Abstract Focus on the impact of Airbnb-type accommodation in the Walloon countryside: An invisible form of tourist accommodation? The Airbnb platform is one of tourism's most significant and transformative advances. Most studies on the platform focus on its expansion and impacts in tourist Société 26 (2024) 545-576 546 cities, whereas it also involves rural areas. In addition to giving visibility to lesser-known tourist destinations, it raises a number of challenges in terms of reception, cohabitation, facilities and identity of these areas. Using a local neighbourhood survey in eight Walloon villages (N=198), we verify whether the impacts identified in urban areas also concern the countryside and whether they are perceived differently according to the inhabitants' characteristics (locality, age, length of residence, gender, housing occupation status, awareness of the presence of Airbnb in the village , knowledge of the Airbnb platform, Airbnb host status, use of Airbnb, need for regulation). A Multiple Correspondence Analysis (MCA) revealed a dependency between perceived impacts and the density of short-term rentals in the village. The analysis also highlights the role of personal benefits. Moreover, a typology of rural areas emerges in terms of perception, notably those already "touristified" and those on the verge of becoming so.
... Airbnb's impact on traditional hotel markets has been a focal point of research, with studies like that of Dogru, Mody, and Suess [23] quantifying the platform's disruptive influence on key hotel markets. Their findings demonstrate that Airbnb's growth correlates with a significant decrease in hotel revenues, particularly in markets where Airbnb has a strong presence. ...
Short-term rental (STR) platforms like Airbnb have significantly impacted urban housing sustainability, particularly in cities like New York City. The COVID-19 pandemic disrupted the STR market, raising questions about its resilience and effects on sustainable urban housing. This study addresses the following research questions: (1) How did unit and neighborhood characteristics influence the survival of Airbnb listings during the pandemic? (2) What changes occurred in the factors determining the emergence of new listings during the pandemic? Using data from Inside Airbnb, we applied Cox proportional hazard models and negative binomial regression to analyze changes before and after the pandemic. We found that during the pandemic, price discounts became crucial for listing survival, while traditional quality indicators like superhost status and high ratings lost significance. The importance of subway accessibility decreased, reflecting shifts in traveler preferences. Additionally, new listings were less likely to emerge in high-density Airbnb areas and more likely in neighborhoods with higher crime rates. These findings highlight the need for sustainable regulatory approaches that balance the benefits of STR platforms with protecting housing affordability and community well-being. Our study provides insights for policymakers aiming to promote sustainable urban housing during global crises.
... The concept of the "sharing economy" and "collaborative consumption" may encourage cooperation and sustainability (Heinrichs, 2013), with the potential to support key elements of the United Nations Sustainable Development Goals (SDGs) (Lutz and Angelovska, 2021). However, organizations like the OECD (n.d.) and academics increasingly discuss the challenges of the sharing economy for sustainable tourism growth, especially when it comes to Short-Term Rentals (STRs) and associated platforms such as Airbnb and Vrbo (Arias-Sans and Quaglieri, 2016; Benitez-Aurioles and Tussyadiah, 2020;Dogru et al., 2019;Dogru, Hanks, et al., 2020;Franco and Santos, 2021;Hazée et al., 2019;Lee, 2016;Lutz et al., 2018;Murillo et al., 2017 ;Rojanakit et al., 2022 ;Stergiou and Farmaki, 2020). STRs represent a shift towards sharing rather than owning goods and services (DiNatale et al., 2018) but STR platforms have been criticized for disrupting housing availability, reducing the quality of life for long-term tenants, increasing house prices, and transforming neighborhoods into tourist destinations, potentially eroding the local sense of community (Gössling & Michael Hall, 2019). ...
Citizen participation has been increasingly advocated as a keystone for sustainable tourism development (for example Timothy, 2006; Bichler, 2021).While participation and empowerment are interconnected, a two-way communication channel is crucial to achieve the highest levels of citizen participation. Technological developments can facilitate further engagement by providing the space for citizen direct voices to reach their representatives and engage in valuable dialogue without intermediaries (Bonsón et al. 2015). This research project explores online citizen engagement with policy makers through an in-depth analysis of usergenerated content on Osoigo.com, a prominent participatory platform in Spain. The platform hosts discussions on an extensive range of topics, spanning from local governance to national policies. As a promising space for civic engagement, Osoigo.com provides an avenue for citizens to voice their opinions, concerns, and suggestions on socio-political issues. This study aims to examine and categorize the content of posts pertaining to tourism while also observing the sentiments expressed by users. The objective is to gain insights into the dynamics of online civic discourse regarding tourism related issue by analyzing both content and sentiment. Content classification will provide a comprehensive overview of the issues that resonate most strongly with Osoigo.com users, shedding light on the priorities and concerns of the citizenry. Simultaneously, sentiment analysis will be utilized to recognize the emotional tone embedded within the posts. Understanding the sentiments expressed by users is crucial for monitoring the overall mood of the online community and evaluating the prevailing attitudes towards different issues. Utilizing sentiment analysis tools, the study aims to differentiate between positive, negative, and neutral sentiments expressed in the posts. This dual approach, combining content classification and sentiment analysis, provides a multifaceted perspective on the nature of citizen engagement. Furthermore, the project aims to investigate potential connections between the content of posts and the sentiments conveyed. By analyzing whether certain types of content elicit specific sentiments, we explore the complex interplay between discourse topics and emotional responses. This nuanced understanding can contribute to the development of strategies to enhance constructive dialogue and foster a more inclusive and positive online civic environment. The research methodology involves scraping a representative sample of posts from Osoigo.com, ensuring diversity in terms of sub-topic, regions within Spain and political parties. The dataset after being preprocessed to eliminate noise and irrelevant information is analyzed with the use of NVivo and statistical methods that allow to present and visualize the findings in a comprehensible manner, facilitating a clear understanding of the patterns identified. In conclusion, this research project on Osoigo.com aims to enrich the understanding of citizen engagement in the digital age. By dissecting the content and sentiments expressed on the platform, we aspire to contribute valuable insights to the fields of political science, sociology, and digital communication. This study not only advances our theoretical understanding of the mechanisms driving citizen engagement, transparency and accountability but also provides practical insights for policymakers and developers to enhance user satisfaction and engagement in the ever-evolving landscape of similar technologies. The findings have the potential to inform policymakers, platform administrators, and researchers, offering a glimpse into the collective voice of citizens and the factors that shape online civic discourse.
... Sharing has been a societal norm, and the term "sharing economy" encompasses a diverse array of consumption practices and organizational model (Dogru et al., 2019), including but not limited to sharing, renting, lending, bartering, swapping, borrowing, trading, exchanging, gifting, and purchasing second-hand or new goods. This economy has seen signi cant growth, with platforms facilitating it playing a more prominent role each year. ...
Airbnb is a popular and low-carbon platform for tourism in the sharing economy. This paper utilized the extended expectation-confirmation model (ECM) and collected 330 valid data through a questionnaire survey to analyze the psychological behavior of tourists during their Airbnb experience. The results demonstrate that the service quality, the concept of low-carbon service, friendly communication with the host, and platform security significantly impact consumers' satisfaction. Highly satisfied consumers are more likely to continue using Airbnb with low-carbon consciousness and engage in electronic word-of-mouth communication. Therefore, ensuring customer satisfaction and low-carbon consciousness are critical to win on the Airbnb platform and attracting more hosts and guests. This study contributes to the existing literature on Airbnb and offers practical implications for the platform and hosts to attract more guests and generate positive word-of-mouth.
... The sharing economy is no longer a niche market but a mainstream phenomenon with its share of misconduct like any other market (Belk, 2014;Benoit et al., 2017;Eckhardt et al., 2019;Golf-Papez & Culiberg, 2023;Hamari et al., 2016;Malhotra and Van Alstyne 2014). Dark facets of the sharing economy encompass external and internal issues, such as conflicts with other preexisting industries (Dogru et al., 2019;Griffiths et al., 2019;Zervas et al., 2017), regulatory concerns from local entities and national governments (Hartl et al., 2016;Thorne & Quinn, 2017), value co-destruction (Buhalis et al., 2020), users' "indirect misbehaviors" (Jin et al., 2022, p. 136), and service failure (Chen & Tussyadiah, 2021;Lu et al., 2020). Studies also point to the tensions that emerge between peers, partly caused by perceptions of social intrusiveness (Simon & Roederer, 2019) or unfair pricing (Xia et al., 2004). ...
Bypassing occurs on sharing platforms when users decide to finalize the exchange directly with each other and engage in tactics to circumvent the payment stage. While previous studies have focused on the antecedents associated with bypass practices, more research is needed to better understand the prevalence of bypassing, which bypass practices are enacted, which types of users bypass, and which do not. Using a mixed-methods design, we first conduct semi-structured interviews (N = 19) to identify several motivations behind bypass tactics that complement the existing literature. We also establish four different bypassing behaviors: (1) paying the other peer directly, (2) transacting via another platform, (3) a combination of on- and off-platform booking, and (4) repeat transactions. Next, by carrying out cluster analysis on a sample of Airbnb users (N = 416), we uncover three groups of bypassers: serial maximizers, rookies, and safe players. Further analysis of Airbnb users who have never bypassed shows that they can be categorized into three additional segments: risk-conscious users, hassle-avoiders, and borderline bypassers. Each of these six groups corresponds to a specific profile, which we describe and characterize based on motivational, relational, and psychographic factors. This research provides an actionable segmentation framework that will help sharing platform managers develop tailored bypass mitigation strategies.
... When considering the impacts of STR market growth, it is vital to note that many people consider Airbnb to be a substitute for traditional accommodation options (Guttentag 2017), especially the more affordable segments of the hotel market (Frenken and Schor 2017, 6). It is for this reason that a growing STR market might have an adverse impact on hotel occupancy rates, average daily rates, and revenue per room (Dogru, Mody, and Suess 2019). For example, one study spanning the top 10 American cities found that a 2.05 per cent increase in the average Airbnb supply corresponded with a 3.7 per cent drop in hotel profits (Farronato and Fradkin 2018). ...
With historical roots in the once-common practices of lodging and boarding, short-term rentals (STRs) have become in recent years a prominent feature of the global travel accommodation space. Worth roughly US115 billion in 2019. Despite a significant hit on business as a result of the COVID-19 pandemic, the STR market is showing strong signs of rebounding. The increased popularity and accessibility of the STR market can be largely attributed to the emergence of digital sharing economy platforms, such as Airbnb and Vrbo, which play the role of mediator in simplifying interactions and transactions between hosts and guests from around the world. As this platform-facilitated STR market has grown, home sharing has garnered increasing attention. Many have celebrated such innovation in the hospitality sector for the benefits it has delivered, among them lower prices, increased consumer choice, local economic development, community revitalisation, and a reliable income stream for property owners. However, others have been quick to decry the practice, accusing STR platforms of engaging in anti-competitive behaviour, exacerbating issues of over-tourism and a lack of affordable housing, and undermining the habitability of communities. Of notable concern among many STR skeptics is a potential shift in practice away from individual hosts renting a primary residence or space therein, and towards commercialization, whereby corporate entities are buying up what were once residential properties to list in the more lucrative STR market. The above picture of costs and benefits points to a market that is rife with tensions. Naturally, this reality has produced calls for regulation and government involvement, and in some cases, has even fuelled campaigns for all-out ban of the practice.As governments have stepped into the regulatory fold, however, they have faced significant challenges. This is because STR activity, different in composition and dynamics from that which plays out in traditional markets, pushes conventional policy boundaries, undermining in some cases the effectiveness of standard legal, regulatory, planning, and governance processes. Regulatory struggles can be attributed to three key factors. First, most conceptions of home sharing employed in the regulatory space treat the STR market as conventional and thus two-sided; that is, as encompassing interactions between those supplying the service (hosts) and those accessing it (guests). Such understandings fail to capture the involvement of additional players—digital STR platforms, most notably, but more recently professional property managers as well— not to mention the nature, extent, and implications of their involvement. Importantly, STR platforms are more than passive facilitators of market activity, and not only influence the contours and dynamics of the market, but also actively shape the regulatory space. Second, attempts to regulate home sharing have been hampered by the widespread tendency, within both policy and academic circles, to treat the market as a monolith. Yet, an assessment of drivers of participation and dynamics among guests, hosts, and platforms makes manifest the complexity of the STR market and the diversity of activity that plays out within it. Notably, STR hosting spans a spectrum of activity, from low- or no-fee home sharing in the spirit of collaborative consumption, to renting a suite in a primary residence, to the commercial multi-hosting referenced above. Drivers of guest participation in the market are similarly diverse. Far from passive, platform involvement is shaped by the desire to create and benefit from network effects, and thus spans partnership development, bridging to distinct but related markets, and even the pursuit of socially minded or philanthropic endeavours. The above diversity suggests that one-size-fits-all approaches to management are destined to fail. Third, governments and policymakers have relied on traditional regulatory concepts and parlance, such as the notion of regulatory violation, to characterize various forms of STR market activity. However, in the case of platform-mediated home sharing, the concept of regulatory fractures—instances in which new modes of activity do not map well onto existing frameworks, thus disrupting regulatory effectiveness—is more apt. The conceptual frame of regulatory fractures enables one to uncover the tensions and complications that are produced when novel activity arises within the context of longstanding institutions and processes, and underscores the extent to which reimagined regulatory and policy approaches, tailored to the unique features of the STR market, are vital. Further, if not addressed, regulatory fractures will not only undercut the intent and effectiveness of regulation but will also curtail the potential benefits of home sharing activity. Going forward, successful management of the STR market will hinge on the ability of policymakers to confront the factors currently hindering the effectiveness of policy and regulatory approaches, namely an under-developed understanding of the STR market and its dynamics, and a continued use of tools ill-suited to novel economic activity. Fortunately, governments ready to innovate in the regulatory space and reimagine management strategies will learn that a number of less conventional approaches show promise. Among such emerging approaches is co-regulation, a tactic employed with success throughout the European Union in particular. Given their prominent role in the market, as well as their desire to influence regulation to maintain network dominance, platforms could make willing and effective partners in co-regulation, just as some other industries are entrusted with a degree of self-regulation. Though it would require the development of a robust framework to ensure effectiveness, co-regulation could help governments to overcome existing issues, such as those related to compliance and enforcement, while also enabling access to more comprehensive data, without which tailored policy and regulatory solutions are significantly hampered.
... Peer-to-peer short-term rental accommodations have brought pivotal changes to the tourism industry [1]. Enabled by mutual trust grounded in the online platform [2,3], peerto-peer accommodations are actively supplied and demanded in many cities around the world, bringing challenges to traditional accommodation sectors [4]. Traditional online distribution channels, such as Agoda, Booking.com, ...
The rapid proliferation of peer-to-peer short-term vacation rentals has sparked a debate regarding their impact on housing markets. This study further investigates this issue by examining the effect of Airbnb on relative rent costs in San Francisco. The research addresses a critical gap in understanding whether Airbnb financially burdens local renters within different income groups. The authors also differentiated the effect of Airbnb accommodations with different levels of commercialization by categorizing Airbnb listings based on their level of commercialization. Using the multiscale geographically weighted regression technique, this study also considered spatial variations in the relationship between short- and long-term rental markets. The findings indicate that the density of Airbnb only affects the relative rent of renters with a yearly household income between USD 50,000 and USD 75,000. Furthermore, the density of Airbnb listings from more commercialized hosts that own between three and eleven showed a positive relationship with the relative rent cost. This study highlighted the variability in the impact of Airbnb on the local community by income group, listing characteristic, and geographic region. This finding underscores the need for differentiated regulation toward peer-to-peer accommodations, as the impact on rent affordability varies by host commercialization level and renter income group.
... The concept of the "sharing economy" and "collaborative consumption" may encourage cooperation and sustainability (Heinrichs, 2013), with the potential to support key elements of the United Nations Sustainable Development Goals (SDGs) (Lutz and Angelovska, 2021). However, organizations like the OECD (n.d.) and academics increasingly discuss the challenges of the sharing economy for sustainable tourism growth, especially when it comes to Short-Term Rentals (STRs) and associated platforms such as Airbnb and Vrbo (Arias-Sans and Quaglieri, 2016; Benitez-Aurioles and Tussyadiah, 2020;Dogru et al., 2019;Dogru, Hanks, et al., 2020;Franco and Santos, 2021;Hazée et al., 2019;Lee, 2016;Lutz et al., 2018;Murillo et al., 2017 ;Rojanakit et al., 2022 ;Stergiou and Farmaki, 2020). STRs represent a shift towards sharing rather than owning goods and services (DiNatale et al., 2018) but STR platforms have been criticized for disrupting housing availability, reducing the quality of life for long-term tenants, increasing house prices, and transforming neighborhoods into tourist destinations, potentially eroding the local sense of community (Gössling & Michael Hall, 2019). ...
The world is facing a tremendous transition to the digital world. Marketing professionals handle a wide range of
topics and information through various funnels. Finding unique and effective tools and using those tools demands
the strong ability of marketing teams. Tourism has grown to be a key contributor to the economies of many
countries. It is now at the heart of the tough competition in international travel to draw more tourists and boost
profits through adaptation and resilience to the shifting demand structure and global conditions of today (Altinay
& Kozak, 2021; Buhalis, 2000; Dwyer & Kim, 2003; Heath, 2003; Kozak , 2004; Ritchie 2003; Ritchie & Geoffrey,
2003). This study aimed to investigate the relationship between perceptions of marketing professionals' datadriven marketing capabilities in the hospitality industry by looking at the relationship between technological
orientation and competitive advantage. The literature shows that the development of digitalized services for their
guest was made possible by the rise of smart technologies (Altinay & Kozak, 2021; Belanche, et.al., 2020; Del
Chiappa & Baggio, 2015; Gretzel, et.al., 2020; Kontogianni & Alepis, 2020; Wang & Li, 2013).
The previous studies also focused on the organizational development side of internal capabilities and their
enhancement. However, this study aims to gain valuable insights into marketing professionals' behaviors in island
tourism destination hotels. According to our literature review, we found that there is still tiny and promising
research about it, and it is interesting to explore the impact of technological orientation and organizational learning
on competition on the island.
The literature review showed that there are still limited studies to understand measuring the efficiency of functions
of collected data from new technologies such as using automation systems; Augmented Reality (AR), Artificial
Intelligence (AI) for marketing strategies (Al Adwan, 2023; Hoffman, et. al., 2022; Saydam, et. al., 2022) Additionally
issue on new technologies in marketing presents a wide rang of research that explores how new technologies
influence marketing practice and how marketin scholars and practitioners can remain relevant in the context of
rapid developments of new technology can stimulate furtrue research (Hoffman, et. al., 2022)Organizational
learning (OL) helps an organization to achieve high performance and strategy renewal helping an organization to
achieve high performance and strategy renewal. It helps people to become more competent and self-assured
which expands the capacity for learning (Sahin, 2021) Organizational learning theory suggests that an
organization's productivity depends on the growth of its knowledge base, which is facilitated by its ability to learn
(Orego & Wainaina, 2019). Our main research question of the paper is how the usage and selected data of new
technological tools affects the organizational performance of tourism sector in terms of marketing capabilities.
To provide a theoretical foundation and the link between the variables hypotheses as follows:
H1. OL positively related to marketing capability.
H2. OL is positively related to competitive advantage.
H3: Marketing Capability is positively related to competitive advantage.
H4a: Technology Orientation has a positive impact on marketing capability.
H4b: Technology Orientation has a positive impact on competitive advantage.
H5a: Technology Orientation moderates the positive relationship between organizational learning and
marketing capability, which gets stronger when technology orientation is inclined rather than declining.
H5b: Technology Orientation moderates the positive relationship between marketing capability and
competitive advantage, which gets stronger when technology orientation is inclined rather than declining.
In our research methodology we shall conduct purposive sampling method to send 400 questionnaires.
Confirmatory factor analysis (CFA) will be performed to assess the measures’ validity and reliability (Chen et al.,
2018). The data is going to be analyzed through SPSS to be able to analyze the findings. The hypothesized
moderated mediation model will be tested using the Smart PLS software. By understanding the collected data, one
of the results shall reveal that a challenging amount of information around competitive advantage and mastering
those challenges is related to the organizational learning capability of hotel marketing staff. Further, by
understanding the relationships we will demonstrate that technology plays an important role in sustaining
competitive advantage. Besides, the technological skills enhancement level of marketers we will identify a digital
mindset followed by a strong ability to organize multi-coping competencies and the correlation between marketing
data usage skills and its effects on competitiveness
... The concept of the "sharing economy" and "collaborative consumption" may encourage cooperation and sustainability (Heinrichs, 2013), with the potential to support key elements of the United Nations Sustainable Development Goals (SDGs) (Lutz and Angelovska, 2021). However, organizations like the OECD (n.d.) and academics increasingly discuss the challenges of the sharing economy for sustainable tourism growth, especially when it comes to Short-Term Rentals (STRs) and associated platforms such as Airbnb and Vrbo (Arias-Sans and Quaglieri, 2016; Benitez-Aurioles and Tussyadiah, 2020;Dogru et al., 2019;Dogru, Hanks, et al., 2020;Franco and Santos, 2021;Hazée et al., 2019;Lee, 2016;Lutz et al., 2018;Murillo et al., 2017 ;Rojanakit et al., 2022 ;Stergiou and Farmaki, 2020). STRs represent a shift towards sharing rather than owning goods and services (DiNatale et al., 2018) but STR platforms have been criticized for disrupting housing availability, reducing the quality of life for long-term tenants, increasing house prices, and transforming neighborhoods into tourist destinations, potentially eroding the local sense of community (Gössling & Michael Hall, 2019). ...
The concept of educational tourism has had an important place in the tourism sector. It emerged with the
combination of the education sector and the tourism sector of many countries. The educational travels of students
provide many economic and social benefits to the tourism sector. The study used qualitative research method for
collecting data in north Cyprus which is recognized by only Turkey and its economy has depended on tourism and
educational tourism for growth. Today, in North Cyprus, where are twenty-seven active higher education
institutions and almost one thousand students from more than eighty different countries prefer to visit this island.
The main aim of this study is the identification and examination of the motivation and experience of international
students from various countries to participate in different educational programs and to continue their studying
abroad and determination of the consequences of such decisions. The proposed topic can provide insights into the
reasons for international students' motivation and experiences in North Cyprus, together with what factors
influence their decision to do so. This information can be useful both for universities in North Cyprus and in other
countries that are willing to recruit university students. The following are some helpful contributions that will be
made by this study to the literature. There is currently an absence of study that investigates various institutions at
the same time, notably how various locations within the same nation may demonstrate varying motivating
elements. Previous research has mostly examined the driving factors of international students participating in
educational tourism from a single point of view. Secondly, gaining data from more than one university will give the
ability to the researcher to compare not only what motivates international students to choose North Cyprus as an
educational tourism destination but will give more in-depth knowledge about the motivating factors to choose
different universities in the same island and if their experience differs from each other within the same country.
By achieving objectives of study, it aims to contribute to the existing literature on international students'
motivations and experiences with educational tourism, specifically within the context of North Cyprus universities.
The findings of this study can serve as a valuable resource for universities, policymakers, and stakeholders involved
in promoting and facilitating educational tourism in the region, ultimately leading to improved recruitment
strategies, enhanced student support services, and an enriched educational experience for international students
in North Cyprus. Results of the study can be useful both for universities in North Cyprus and in other countries that
are willing to recruit university students. The findings of this research show that Northern Cyprus can attract
students for three reasons. Firstly, the educational quality and facilities are pretty good. It is one of the reasons
why people study abroad. In Northern Cyprus, this is provided to students. Secondly, economically, and easy
accessibility of Northern Cyprus is a big advantage for students from third country nations. Lastly, countries safe
environment for foreigners is a big advantage for feeling safe and as well as respecting their culture.
... The fourth variable listed below was the AirBNB's new entrants where it was found out that it has no significant effect on the ROR of accommodation establishments in Davao Region. However, from the literature they argued that the presence of substitution threats and/or new entrants holds a major implication in the direct financial consequences of AirBNB's increased room availability on important performance indicators such as occupancy rates (OCC), average daily rate (ADR) and revenue per available room (RevPAR) (Dogru et al., 2019(Dogru et al., , 2020(Dogru et al., , 2023. ...
This study was conducted to investigate what model could be developed in analyzing the Room Occupancy Rate (ROR) of accommodation establishments in the Davao Region. This investigation used a quantitative research method utilizing empirical analysis. The statistical tools used were the Bai and Perron multiple structural break test and One Least Squares (OLS) regression. Secondary data was utilized and the sources were from various government agencies and reliable websites. The key findings of this investigation include overall mean of 29.53% for the ROR of accommodation establishments in Davao Region between 2016 and 2022. Results revealed that the presence of three breakpoints happened in January 2019, January 2022 and March 2020. The OLS regression and Augmented Dickey-Fuller (ADF) test result exhibit that the sources and magnitude of the structural breaks are Public Safety with permanent effect, Regime with permanent effect, Earthquake with transitory effect and Health Crisis with permanent effect. The conclusions of this study imply that it just simplifies the actual events occurring in the Davao Region’s Accommodation Industry.
... Studying ten markets in the United States, Dogru et al. (2019) found that the rise of Airbnb negatively affected three measures of hotel performance, namely room revenues, average daily rates, and occupancy rates. In their 2020 paper, the same authors Dogru et al. (2020) studied the London, Paris, Sydney, and Tokyo markets and found similar results. ...
Cet article analyse l’impact des plateformes de location à court terme sur le marché immobilier et l’industrie du tourisme. Nous élaborons un modèle théorique afin d’explorer les effets de l’entrée de ces plateformes sur différents segments du marché immobilier et de l’industrie du tourisme, en fonction de l’attrait d’une destination et de la composition socio-économique de sa population. Nous démontrons que dans des destinations très attractives, des restrictions quantitatives sur les locations à court terme sont efficaces pour protéger les étudiants et les locataires à faibles revenus contre une exclusion du marché locatif. Cependant, dans des destinations caractérisées par une forte saisonnalité, la taxation pourrait constituer une solution plus adéquate pour atténuer les effets négatifs de la plateforme. En revanche, dans des destinations moins attractives, les restrictions quantitatives sont moins efficaces, et la taxation peut offrir une meilleure solution pour protéger les hôteliers et les familles de la classe moyenne. Nos résultats fournissent aux décideurs des lignes directrices efficaces pour réglementer les plateformes de location à court terme et leurs impacts sur différents segments du marché immobilier et de l’industrie du tourisme. JEL Codes: L83, L85, L86, R31, Z38
... As part of a broader set of sharing economy practices, sharing accommodation has grown enormously in recent years, creating a model of sharing access to underutilised resources through online platforms, represented by the American sharing economy companies Airbnb. The company has experienced greater than 100% growth in supply year-over-year for over a decade (Dogru et al., 2019), offering 5.6 million active listings as of June 2021 and serving over 100,000 cities in over 220 countries and regions around the world. Sharing accommodation is also called shared accommodation, peer-to-peer (P2P) accommodation, home-sharing lodging, or short-term rentals by different organisations and researchers (Qi et al.,2024). ...
Sharing accommodation is a new accommodation type and has rapid development in recent years. Since Generation Z will be the core consumers in the future, this study explored the attitudes of Generation Z tourists towards sharing accommodation products and the impact of their stay experiences and demographic characteristics on their attitudes. This study takes Chinese Gen Z adults as the target population for the boost of sharing accommodation industry in China, the SPSS was utilised to conduct an empirical examination of the identified relationships. The study conducted descriptive analysis, independent samples t-test and one-way ANOVA. The result showed a slight preference towards sharing accommodation products compared with traditional accommodation for young Gen Z tourists. The independent samples t-test and ANOVA analysis showed that previous experience positively influenced tourists’ attitude preference to sharing accommodation. The study also found that gender and income have no significant effect on attitude preference towards sharing accommodation for Chinese Gen Z tourists; however, the education level and occupation factors showed significant impacts on tourists’ attitudes towards sharing accommodation.
... The concept of the "sharing economy" and "collaborative consumption" may encourage cooperation and sustainability (Heinrichs, 2013), with the potential to support key elements of the United Nations Sustainable Development Goals (SDGs) (Lutz and Angelovska, 2021). However, organizations like the OECD (n.d.) and academics increasingly discuss the challenges of the sharing economy for sustainable tourism growth, especially when it comes to Short-Term Rentals (STRs) and associated platforms such as Airbnb and Vrbo (Arias-Sans and Quaglieri, 2016; Benitez-Aurioles and Tussyadiah, 2020;Dogru et al., 2019;Dogru, Hanks, et al., 2020;Franco and Santos, 2021;Hazée et al., 2019;Lee, 2016;Lutz et al., 2018;Murillo et al., 2017 ;Rojanakit et al., 2022 ;Stergiou and Farmaki, 2020). STRs represent a shift towards sharing rather than owning goods and services (DiNatale et al., 2018) but STR platforms have been criticized for disrupting housing availability, reducing the quality of life for long-term tenants, increasing house prices, and transforming neighborhoods into tourist destinations, potentially eroding the local sense of community (Gössling & Michael Hall, 2019). ...
After a critical review of the recent literature on Airbnb as a sharing economy case into the tourism and hospitality
sector, founded that there is a floor to make more research on sustainability issues. Firstly, there is a gap on how
Airbnb promotes eco-friendly and sustainable travel, as well as its effects on the environment and local
communities (Ding, et. al., 2023). Secondly, recent studies outlined that scholars should apply to use a qualitative
approach to examine a more sustainability related issues into their future studies (Molina et. al., 2022). Lastly,
more studies on the factors that encourage environmentally conscious behavior changes in customers in various
contexts—like a restaurant, hotel, or destination—are needed by academia (Han, 2021).
This study focused on examining relevant linkages between motivational factors to be owner of P2P
accommodation (Airbnb host) and being active in pro-environmental and pro-social actions into the life practices.
This study tries to make contribution into the literature by focusing on the sustainability aspects (social and
environmental) of Airbnb hosts by using qualitative research method. This study contributes by associating the
motivations of being Airbnb host and being active in sustainability issues under the framework of moral values.
Furthermore, the study analyzed whether an individual awareness of sustainability practices by Airbnb hosts has
influence on their motivations on social responsibility actions into their hosting practices. Data collected from
Famagusta town of the Cyprus Island which is an island historically interacted culturally with neighboring nations
that border the Mediterranean Sea. The research focused on examining the relationship between being Airbnb
host and being proactive individual on sustainable issues. Therefore, hosts answered the question to define ‘social
responsibility’ in their own understanding and words. The key themes found followed as; ‘Community Engagement
and Pro- social Practices’, ‘Environmental Consciousness and Pro-environmental Practices’, ‘Family Values on
Moral Identity and Legal Compliance’ and ‘Restoration and Cultural Heritage’. Motivational factors of hosts are
collectively highlighted in a range of motivations, including economic considerations, family dynamics, community
benefit, and a sense of cultural and historical responsibility. Those findings can be examined under the ‘Collective
Social Responsibility Model’ that introduced that each positive behavior of individual is an added value to the
society which is creates wealth and promotes sustainable community. Findings found that hosts stress the
importance of the level of environmental consciousness that is gained from education in fostering social
responsibility. Respondents believed that teaching cultural heritage, environmental awareness, and ethical values,
especially to children, is a crucial aspect of building a responsible society. Additionally, they indicated that hosts
owing environmental sensitivity and leading pro-environmental practices into their Airbnb practices. The
statements of hosts accepted as; they have good practices in their private life under the scope of social
responsibility. Findings of the study showed that hosts work in a team for implementing necessary projects for the
benefit of the society. Within this view, hosts can be taking responsibility in a collective level through community
engagement and pro-social activities. Participants express a sense of social responsibility through the restoration
of idle and old houses, contributing to the preservation of cultural heritage and historical structures.
As a context of moral identity issue of respondent hosts, the influence of family values on the development of
moral identity is highlighted. Respondents attributed their sensitivity to environmental and social issues to the
values instilled by their families during their upbringing.
Furthermore, hosts answered that moral values gain from education and their families, and it has a very strong link
through being socially responsible individual. Some respondent hosts commented that the level of environmental
consciousness and importance of environmental issues is the primary social responsibility both for our community
and entire world. Findings found that hosts stress the importance of the level of environmental consciousness that
is gained from education in fostering social responsibility. Respondents believed that teaching cultural heritage,
environmental awareness, and ethical values, especially to children, is a crucial aspect of building a responsible
society. Additionally, they indicated that hosts owing environmental sensitivity and leading pro-environmental
practices into their Airbnb practices.
... The concept of the "sharing economy" and "collaborative consumption" may encourage cooperation and sustainability (Heinrichs, 2013), with the potential to support key elements of the United Nations Sustainable Development Goals (SDGs) (Lutz and Angelovska, 2021). However, organizations like the OECD (n.d.) and academics increasingly discuss the challenges of the sharing economy for sustainable tourism growth, especially when it comes to Short-Term Rentals (STRs) and associated platforms such as Airbnb and Vrbo (Arias-Sans and Quaglieri, 2016; Benitez-Aurioles and Tussyadiah, 2020;Dogru et al., 2019;Dogru, Hanks, et al., 2020;Franco and Santos, 2021;Hazée et al., 2019;Lee, 2016;Lutz et al., 2018;Murillo et al., 2017 ;Rojanakit et al., 2022 ;Stergiou and Farmaki, 2020). STRs represent a shift towards sharing rather than owning goods and services (DiNatale et al., 2018) but STR platforms have been criticized for disrupting housing availability, reducing the quality of life for long-term tenants, increasing house prices, and transforming neighborhoods into tourist destinations, potentially eroding the local sense of community (Gössling & Michael Hall, 2019). ...
Consumer behaviour studies have acknowledged that consumers use rationality to solve specific purchasing problems (e.g., Howard & Sheth, 1969; Suomala, 2020). Nonetheless, scholars have begun to argue that it ignores critical facets of consumption, particularly when it comes to leisure activities, sensory pleasures, daydreams, aesthetic enjoyment, and emotional responses (Holbrook & Hirschman, 1982). In the hospitality and tourism industry, products are experiential (Williams, 2006) and can be classified as a total experience (Lewis & Chambers,
2000). Although academics agree that the tourism experience is inherently complex, they cannot come to a consensus regarding a common conceptualization or which specific elements most accurately convey the essence
of the concept (Godovykh & Tasci, 2020). Tourism experience has been extensively conceptualized and tested using different perspectives like the experience economy paradigm with '4Es': education, entertainment, escapism, and
aesthetics (e.g., Oh et al., 2007); or the brand experience approach including five dimensions: sense, feel, think,
act, and relate (e.g. Rather, 2020; Tsaur, Chiu & Wang, 2007), among others. In light of the difficulty of encapsulating every aspect that guests experience while on-site (Zatori, Smith & Puczko, 2018) and the limited scope of a single measurement scale (Oh et al., 2007), this study addresses this constraint by employing two widely
recognized tourism experience scales (Oh et al., 2007; Rather, 2020) to provide a deeper comprehension of the tourism experience. The impact that tourists' on-site experiences have on their perceptions and feelings toward a destination (Yordanova & Stydilis, 2019), as well as their future behavioural intentions, such as recommendations and revisit intentions, makes them an essential concept for destination marketing and management (e.g., Sharma
& Nayak, 2019; Zhang, Wu & Buhalis, 2018).
Lai and Li's (2016, p. 1074) definition of destination image discloses an experiential view of consumption being "a voluntary, multisensory, primarily picture-like, qualia-arousing, conscious, and quasi-perceptual mental (i.e., private, nonspatial, and intentional) experience held by tourists about a destination". In light of this approach, the visit shapes a modified, more complex, and authentic image (Gunn, 1972; Li, Liu & Soutar, 2021), thus expanding the concept of the experiential destination image. However, it has yet to be adequately explored in the existing
literature (Choi & Cai, 2022; Lee, Lee & Lee, 2014; Li et al., 2021). As far as the authors know, little work has been done to understand the experiential effects of the visit on destination image modification. Other mental events, such as tourists' recollections of the destination, can be derived from their tourism experience and image of the
place (Stavrianea & Kamenidou, 2020) and impact on people's future decision-making, including in touristic contexts (Kim, Ribeiro & LI, 2022, p. 1309). Culture significantly influences how individuals perceive, interpret, and
form opinions about places (Reisinger and Turner, 2002). Therefore, tourism studies should consider nationality or cultural variations to clarify how to promote a destination to specific segments of travellers. Fuelled by the
abovementioned, this study examines the correlation between tourism experience, experiential destination image, tourism memory, tourists' satisfaction and loyalty. If understood as a crucial part of tourism memory formation, tourism experiences and the experiential destination image would help predict tourists' satisfaction and future behaviours. This study starts by exploring the dimensions of the tourism experience from which the subsequent relationships in the conceptual model (experiential destination image, tourist memory, satisfaction and loyalty) are
investigated. A multi-group analysis will also identify the differences between domestic and international tourists. A proportional stratified sample by season and the most representative issuing markets was implemented within
Portuguese, British, French, German, Spanish, Irish, and Dutch tourists (PMETA 2.0, 2021) visiting the Algarve
coastline in the south of Portugal. In total, 2709 questionnaires were validated, 1909 in the high season (between
July and September 2021) and 800 in the low season (between October and June 2021). The results show that the tourist experience has five dimensions: active learning, emotional engagement, passive entertainment, immersive escape, and aesthetic appeal. Moreover, the cognitive image of the Algarve is positively impacted by the travel experiences of both domestic and foreign visitors. The effect of tourism memory on visitors' loyalty varies significantly between domestic and foreign travellers. Future research directions, constraints, and theoretical and
managerial implications are explored.
... STR platforms imply some opportunities (e.g., empowerment of individuals to generate revenue with existing assets, improving the amount and type of accommodation offered) (Hajibaba and Dolnicar, 2018;Farmaki and Miguel, 2022). On the other hand, STR platforms may introduce some challenges (e.g., contribution to the gentrification of cities, regulatory issues, taking market share from the hospitality industry) (Cocola-Gant, 2020;Dogru et al., 2019). In recent years, the STR market has been booming most likely due to financial benefits of STRs (Manganelli et al., 2020). ...
... However, a few authors have also examined the dark side of collaborative consumption, and it is possible to find articles questioning this new business model and raising concerns about it (Eckhardt et al., 2019, p. 16). For example, Malhotra and Van Alstyne (2014) identify value co-destruction and regulatory failures, Sundararajan (2016) considers its undesirable consequences for the workplace and the workforce, Lee et al. (2021) examine discrimination-related aspects, and Dogru, Mody, and Suess (2019) investigate Airbnb's disruptive impact on the hotel industry. So far, only limited attention has been paid to the possible tensions between these new sharing platforms and their users, and this stream of research includes a handful of studies looking into users' resistance (Huang, Coghlan, & Jin, 2021) or discontinuance (Huang, Coghlan, & Jin, 2020). ...
... The impact STRs have on housing prices is another, related worry (Benítez-Aurioles & Tussyadiah, 2021;DiNatale et al., 2018;Nieuwland & Van Melik, 2020). Additional noise and litter, changes in demand for and provision of local services (e.g., schools), issues with parking, and a deterioration of the community spirit represent potential downsides of the extensive presence of STRs (DiNatale et al., 2018;Dogru et al., 2019;Lee, 2016;Nieuwland & Van Melik, 2020). Stergiou and Farmaki (2020) identified negative perceptions as predominant, especially around disruption, displacement, and a lack of voice among residents. ...
Short-term rental platforms such as Airbnb have enjoyed considerable success in recent years. However, critics accuse the platforms of having negative impacts, leading to gentrification, disruption, and increased rent and house prices. While research has investigated actual impacts of short-term rental platforms, we lack systematic, generalizable, and comparative evidence on the perceived impacts of such platforms, especially from a social exchange perspective and on a country level. To address these shortcomings, we conducted a representative survey in the US and UK with a holistic set of perceived impacts. Using social exchange theory (SET) and applying a range of multi-variate statistical analyses, such as exploratory factor analysis, cluster analysis and discriminant analysis, we systematically compare these two contexts. The findings indicate that US residents assess short-term rental platforms more positively than UK residents, especially for recreational, amenities-oriented and economic impacts. Among respondents who have used short-term rental platforms as guests, the perceptions are more alike between the two countries, suggesting a homogenization effect. We discuss the theoretical and practical implications of the results.
... Finally, there are also advantages at the community level, by increasing economic and local business opportunities (Badulescu et al., 2014;Perkumienė et al., 2021). On the other hand, as we mentioned before, there are numerous studies that reveal the negative externalities that the growth of Airbnb has brought: the decrease in income of traditional forms of accommodation, environmental problems (Dogru et al., 2019;Zervas et al., 2017), regulatory difficulties, unfair competition, affecting the quality of life of residents (Guttentag, 2015;Forgacs & Dimanche, 2016;Roelofsen & Minca, 2018). ...
Globalization, the rise of the internet and the online market, as well as the expansion of mobility, have contributed to the exponential growth of tourism, and Europe can claim global supremacy when it comes to international tourism. The rate of growth in the number of tourists has accelerated over the last ten years thanks to the flexibility of travelling modalities, the openness to tourism of many countries and, last but not least, the emergence of collaborative tourism, which is a worthwhile alternative to classic tourism. The coronavirus pandemic (COVID-19), which broke out in February 2020, has had a disastrous impact on the entire tourism industry. Due to this pandemic, domestic and international travel has been disrupted enough to have an immediate and fundamental impact on tourism and all related activities. The pandemic has changed the way people manifest themselves and paved the way for trends such as contactless technology, working from home, high standards of hygiene, domestic travel, and holidays with a small number of people. As a result, the trends already existing in the market before the outbreak of the pandemic, which were reshaping the idea of tourism, have been reinforced even more now. These include digitalization, durable and sustainable consumption, a growing demand for travel booked through platforms and, last but not least, the desire for personalized and original experiences. In this paper we aim to highlight the dimension of the Airbnb, one of the most successful sharing economy platforms, before and after the COVID-19 pandemic, highlighting in what manner the advances of the digital world have interacted with the challenges, restrictions and opportunities of the recent pandemic, economic and political crises.
... This issue is referred to as workforce uncertainty, which can result in insufficient workers in particular positions and insufficient working hours per day. However, these uncertainties must be managed to maintain customer satisfaction and service quality while also minimizing chambermaids' labor costs (Bonfanti et al., 2021;Dogru et al., 2019;Lam et al., 2022). ...
This study presents a novel approach for chambermaid scheduling that integrates data and information flows through mobile applications and a technique called variable neighborhood strategy adaptive search (VaNSAS). VaNSAS employs two simple heuristics, moving network method (MNM) and simple neighborhood search routine (SNSR), along with a simplified differential evolution (SDE) to create schedules. The study demonstrates the effectiveness of the proposed approach, which outperforms traditional manual methods. The use of VaNSAS results in an average improvement of 184.39% in finding better solutions, a reduction in scheduling time by 175.78%, an enhancement in load balancing among chambermaids by 94.25%, and a productivity increase by 50%. The results contribute to improving overall efficiency in the hotel business by facilitating workforce management and demand uncertainties, reducing workload, enabling control of work duration, and enhancing customer satisfaction by allowing customers to better manage their daily schedules. The integration of data and information flows with VaNSAS for chambermaid scheduling has the potential to revolutionize the hospitality sector. In order to facilitate decision-making for the allocation and scheduling of chambermaids, an Internet of Things integrated chambermaid allocation and scheduling software is adopted, which provides a more efficient approach.
... Sharing accommodations began to expand after the launch of Airbnb in 2008. The company has experienced greater than 100% growth in supply year-over-year for over a decade (Dogru et al., 2019), offering 5.6 million active listings as of June 2021 and serving over 100,000 cities in over 220 countries and regions around the world. Accordingly, peer-to-peer accommodation (P2P) mediated by sharing economy platforms is expected to challenge forms of traditional accommodation and revolutionise the tourism and hospitality industry (Kuhzady et al., 2022). ...
As part of a broader set of sharing economy practices, sharing accommodation has grown enormously in recent years. There is growing acceptance of sharing accommodation as a pathway for responsible tourism, which coincides with universalism value. Taking Gen Z adults as the research target, this study explored the effect of universalism personal value on tourists' attitudes and behavior intentions regarding the choice of sharing accommodation products in a Chinese context. Additionally, the moderating effects of the habit of ICT use were tested to observe whether it strengthened the influence of universalism personal value on tourists' attitudes. Online questionnaires were distributed to the respondents to obtain the information. To examine the relationship, the analysis was done using SPSS and AMOS for empirical analysis. The findings showed that for Chinese Gen Z adult tourists, universalism-concern personal value positively related to the tourists' attitude to sharing accommodation, and the tourists' attitude also has a significant effect on sharing accommodation choice behaviour intention compared with traditional hotel. However, the hypothesis that universalism-nature personal value will positively influence tourists' attitude was not supported. Besides that, habit of ICT use strengthens the relationship between universalism-concern personal value and tourists' attitude, but the hypothesis of the moderation role of habit of ICT use between universalism-nature and attitude was not supported in this study.
... Seven search paths were identified in different colors. Path one focuses discussions on Airbnb as a disruptive innovation (Guttentag, 2015) to analyze its growing impact on hotel industry (Blal et al., 2018;Dogru et al., 2019;Guttentag and Smith, 2017;Koh and King (2017) and reasons why consumers choose this type of accommodation (Guttentag et al., 2018). ...
... Since its inception in 2008, Airbnb has made great strides in the short-term lodging industry [1]. The selection of lodging by consumers is influenced by housing prices, which may exhibit discernible spatial autocorrelation [2]. ...
This research delves into the intricate relationship between spatial and locational attributes and Airbnb pricing in London. Utilizing data encompassing Airbnb listings in London collected over one year concluding on December 10, 2022, and employing advanced geospatial statistical techniques, including a geographically weighted regression (GWR) model equipped with ten select explanatory variables, this study reveals multifaceted spatial patterns underlying Airbnb pricing. The study underscores the paramount significance of dissecting the multifaceted determinants of Airbnb pricing, encompassing property characteristics, location-specific variables, host-related attributes, and customer feedback. Through empirical analyses, this research illuminates pronounced spatial heterogeneity within Airbnb pricing, with notable variations discerned across different room types. Interpretation of model coefficients reveals the multifaceted influence of factors, such as proximity to subway stations, volume of customer reviews, and specific scores, on pricing dynamics. Additionally, the GWR model exposes significant spatial variations in the impact of location and neighborhood-related variables on pricing, with particularly marked effects in the realms of entire homes and private rooms. This study aims to illustrate the intricate interplay between spatial and locational characteristics and Airbnb pricing dynamics, offering invaluable insights for researchers and industry practitioners.
... Airbnb's authenticity Finally, Airbnb supply has negatively impacted hotel revenue per available room and economy and luxury hotels are the most impacted. It was also found that Airbnb supply negatively impacts hotel average daily rate and occupancy rates (Dogru et al., 2019). On the other hand, Garcia-Ayllon (2018) found that Airbnb follows a different implantation pattern to hotels, territorially concentrating its impact in the center of cities and traditional residential neighborhoods. ...
Purpose
This paper aims to address three research questions (1) Who is the main stakeholder that shapes Airbnb experience, (2) Does Airbnb offers an authentic travel experience? and (3) What should be the future research trends in Airbnb?
Design/methodology/approach
This paper uses the systematic literature review (SLR) with a well-defined protocol, research strategy and methods to answer the research questions.
Findings
The review revealed that while Airbnb plays a significant role as the platform provider, the stakeholders influencing the experiences are multifaceted. Hosts, guests, local communities and even regulatory bodies all contribute to shaping the overall Airbnb Experience ecosystem. Hosts, in particular, have a crucial role in curating and delivering unique experiences, which significantly impacts the quality and authenticity of the offerings. On the question of whether Airbnb offers an authentic travel experience, the review uncovered mixed findings. For examples, some studies emphasized the potential for Airbnb to provide authentic and local experiences, allowing travelers to engage with the community and cultural aspects of a destination. However, other studies raised concerns about the commodification and standardization of experiences, leading to a potential loss of authenticity.
Originality/value
This paper is different from previous SLR where previous research systematically reviewed; motivations to use and choose Airbnb, institutionalization of Airbnb, stakeholders of Airbnb. This paper addresses authentic experience as a factor that influences activity participation.
... It has been observed, starting from the pioneering contribution of Hu et al. [15], that the impact of the Covid-19 outbreak on the reservation volumes of the platform was immediate, with both the local and global demand being instantly impacted as a result of the declaration of the first Wuhan lockdown and the subsequent spread of the Covid-19 pandemic throughout the world. Dolnicar & Zare [2] referred to this situation as "Disrupting the disruptor", with Airbnb, the disruptor of the accommodation services [21,11], being severely impacted by the Covid-19 pandemic. ...
We investigate the way service providers who operate on an online peer-to-peer (P2P) platform readapted their marketing choices to face the Covid-19 pandemic. Through an empirical investigation on a large dataset of Airbnb properties in Rome, observed from January 2018 to December 2020, we provide a threefold contribution by investigating how Airbnb hosts reacted to the Covid-19 pandemic shock, in terms of marketing choices, such as price adjustments and flexible cancellation policies; the direct effects of these choices on their economic returns; and how service providers on Airbnb reacted to address the new needs of their customers during the Covid-19 pandemic. The findings provide useful insights for researchers and practitioners and show that the adoption of combined marketing choices led to more than proportional effects on performances as it allowed Airbnb hosts to exploit profitable market segmentation mechanisms.
... Hotel properties typically operate under one of three business models: franchising, chainmanaged or independent, each of which has its advantages and disadvantages to the property owner, including how the business model responds to external shocks such as the COVID-19 pandemic. In addition, the peer-to-peer (P2P) business model of the sharing economy, popularized by Airbnb, further intensifies competition for customers during a lean period such as COVID, thus impacting the performance dynamics of the industry overall (Dogru et al., 2019). ...
Purpose
The purpose of this study is to investigate the effect of the COVID-19 pandemic on key performance metrics of accommodation properties by elaborating on the roles of business models (i.e. franchised, chain-managed and independent hotels, and the sharing economy) and state-level restrictions in the US.
Design/methodology/approach
The pandemic is considered a variable interference against the average daily rate, occupancy and revenue per available room, which permits the examination of the before and after effects of the pandemic. The panel data model is used to examine the effect of the recent pandemic on the accommodation sector in the USA.
Findings
The results showed that chain-managed hotels were the most adversely impacted by the COVID-19 pandemic, while independent hotels were the least adversely impacted. Interestingly, and consistent with emerging consumer needs suggested by spatial distance theory, the pandemic does not have significant negative effects on Airbnb. The adverse impact of the pandemic on hotels was exacerbated in more restrictive states, while Airbnb remained immune to regulatory differences.
Research implications
This study addresses the dearth of research on the types, roles and efficacy of business models in the accommodation industry and makes important theoretical contributions to the study of business model resilience in the accommodation industry, leveraging the resource-based theory of the firm and spatial distance theory.
Originality
The findings of this study make a significant contribution to the extant literature on the resilience of business models in the accommodation industry and have important implications for hotels, Airbnb owners, accommodation brands and destination and health policymakers. They demonstrate that a lower level of corporate control and greater flexibility in brand and operational standards allow for a more effective response to business disruptions such as a global pandemic.
Trust is a multidimensional concept composed of competence, benevolence, and integrity. However, scholars have mainly used unidimensional scales to measure trust. Drawing upon the Trust Transfer Model, this study assessed how different dimensions of digital platform trust, dual-role users (acting as both host and guest), and corporate social responsibility (CSR) influence trust in Peer-to-Peer hosts. A survey with 894 Airbnb users tested the study’s hypotheses. The findings show that platform competence-based trust and CSR strongly influence trust toward hosts, while integrity has a weaker effect, and benevolence is only significant for dual-role users. Host trust mediates the relationship between platform trusting beliefs and customer satisfaction. The study reveals that dual-role users moderate the relationship between benevolence-based trust and trust toward hosts, while CSR’s effect on host trust is stronger for users with single role. The study has implications for Peer-to-Peer organizations and service providers.
This study investigates the impact of the sharing economy on sustainable tourism practices through a bibliometric analysis. The purpose is to understand the evolution of research focus, identify dominant themes narrated by the help of cluster analysis using SciMat and pinpoint influential authors and institutions. Using a comprehensive bibliometric approach using Biblioshiny, the study analyses scholarly publications to map trends and patterns in the literature. Cluster analysis has been done using SciMat. The findings reveal a significant shift in research focus over time, from initial explorations of economic benefits to more recent emphasis on environmental sustainability and community impacts. Dominant themes include the role of sharing economy platforms in promoting sustainable choices, policy and regulation frameworks, user behaviour and cultural preservation. Influential authors and institutions are identified, highlighting contributions from leading universities and research centres globally. Furthermore, specific academic journals and conferences emerge as prolific publishers in this domain, providing a platform for ongoing scholarly dialogue.
Purpose
Disruptive innovation is regarded as an important engine of the new technological revolution, which can change the traditional market structure and business model completely. Articles on disruptive innovation remain fragmented and heterogeneous in terms of theoretical paradigms and empirical studies. For the purpose of further understanding about disruptive innovation, and to recognize its evolutionary trajectory and research trends, this paper provides a systematic literature review.
Design/methodology/approach
Based on data from Web of Science a total of 1,415 articles were collected to identify productive countries, prominent journals, influential authors and main sub-fields on disruptive innovation. Additionally, important articles are analyzed for content.
Findings
There is an overall increasing trend in the number of articles, a uniformity of highly productive authors and countries and a primary concentration in business and management journals. Moreover, six research clusters are identified and an antecedent-decision-outcome framework is constructed to categorize significant studies.
Practical implications
This paper outlines the key focuses of the field: application and adoption of disruptive technology, identifying and responding to disruptive innovation, commercialization of disruptive technology, disruptive innovation strategies and disruptive business models.
Originality/value
This paper combines bibliometrics and content analysis to systematically overview disruptive innovation research.
This study explores how Scottish Government regulations impact self-catering businesses post-short term let legislation. Survey findings highlight adverse effects including reduced competitiveness and increased costs. Guided by ‘Better Regulation’ principles, it identifies unintended consequences, urging policymakers to collaborate and adopt a data-driven approach. The research calls for legislative review to improve regulatory outcomes, contributing to broader discussions on tourism regulation and enhancing transparency in Scotland’s self-catering sector.
W książce została poruszona tematyka SPL w odniesieniu do nauk o zarządzaniu. W poszczególnych rozdziałach zaprezentowano różne spojrzenia na
przeglądy literaturowe odnoszące się do takich obszarów jak: rynek odzieży używanej, komunikacja marketingowa w kształtowaniu wizerunku muzeów, aktywność społeczna osób starszych w miastach, rynek żywności czy elementy składowe modeli biznesowych przedsiębiorstw. Różnorodność poruszanych tematów może stanowić inspirację dla czytelników do przeprowadzenia SPL w swoich
obszarach badawczych.
This paper describes an empirical study that was conducted by applying creative destruction theory to examine structural changes in the hospitality industry due to the growth of digital home-sharing platforms. To achieve these research aims, the current study considered the hospitality industry, which encompasses the accommodation and restaurant sectors, as well as Airbnb, representing the digital home-sharing platform. The findings revealed that there is a significant relationship between the exit of the accommodation industry and the supply of the digital home-sharing platform, while both entry and exit in the restaurant industry are significantly associated with the supply or performance of the digital home-sharing platform. Over time, this leads to industry transformations as certain segments of the lodging industry are replaced by digital home-sharing platforms, and as the restaurant industry undergoes a process of creative destruction, with establishments unable to adapt to changing business environments and the emergence of new facilities tailored to new technologies or accommodation models.
The emergence of the sharing economy has brought about significant disruptions to traditional business models across various industries. This paper presents a comprehensive comparative analysis of the impact of the sharing economy on traditional business models. By examining key sectors such as transportation, accommo dation, and retail, this study investigates the extent to which traditional businesses have been affected by the rise of sharing economy platforms. Through a synthesis of existing literature and empirical evidence, the paper explores the drivers of disruption, the challenges faced by traditional businesses, and the strategies employed to adapt to the changing landscape. Furthermore, the study delves into the implications of these findings for both incumbent firms and the broader economy. By shedding light on the dynamics of this transformational phenomenon, this research contributes to a deeper understanding of the interplay between the sharing economy and traditional business models, offering insights that can inform strategic decision-making and policy formulation in an increasingly digital and interconnected world. Introduction:
The article aims to provide a comprehensive overview of recent academic studies on pricing in tourism and to deepen the understanding of the recently prevailing research streams on this topic. This article reviews research articles on tourism pricing published in journals in the Scopus database between 2017 and early 2023. An analysis of the selected literature identifies three research streams on pricing: research on price determinants, price development and customers’ price decisions. In terms of methodology, empirical studies predominate, and in terms of period, the distribution over the years shows a stable and consistent level of research activity. The article is essential for further research in the field by presenting a synthesis of recent academic work.
The sharing economy concept has been firmly incorporated into various scientific fields and applied broadly in practice. This paper aims to gain a detailed insight into the contemporary intellectual structure of the sharing economy in the fields of economics, business and management. Using a two-stage approach: a critical literature review and social network analysis (SNA), the dominant research niches and under-investigated issues within sharing economy were identified, along with the most influential authors and papers. Author collaboration and citation connection of papers have also been examined. It was concluded that sharing economy knowledge is gradually approaching the stage of maturity bearing in mind the growing number of articles, the presence of emerging research niches, as well as scarcity of approaches directed to purely quantitative analysis. Additionally, it was discovered that despite the study focus on the predefined research field, sharing economy concept exhibit a remarkable level of postdisciplinarity.
The spatial structure of Bed and Breakfast (B&B) development plays a crucial role in promoting integrated urban–rural development. However, existing B&B research has predominantly focused on single large cities, neglecting to explore the spatial patterns of B&B development and their influencing factors from the perspective of urban–rural differences. To address this gap, we conducted a comprehensive case study in an all-for-one tourism demonstration area in Hainan Province, China. We adopt geospatial analysis methods and ridge regression models to investigate the characteristics of urban–rural disparities in B&B distribution and to identify the primary factors influencing their spatial arrangement. The research findings reveal valuable insights: (1) B&B establishments in the tourism demonstration area exhibit clustering with notable variations in clustering intensity between urban and rural regions; (2) essential factors affecting the spatial distribution of B&Bs include transportation accessibility, reliance on tourism attractions, B&B development infrastructure, and the availability of living services; (3) tourism resource dependence emerges as the most significant driving force behind B&B agglomerations in the tourism demonstration area; and (4) road network density, hotel service availability, and neighborhood residential density are three additional critical factors affecting B&B distribution, with their influence varying between urban and rural B&Bs. Based on these key findings, we propose development strategies for optimizing B&Bs’ spatial structure in the tourism demonstration area and outline a blueprint for fostering integrated urban–rural development.
Objectives: Virtual tourism has changed the buying behavior patterns
of tourists due to influence of the modern technologies. The tourist purchase
decisions have been taken to the next level, from being complex to simple.
The objective of the study is to understand the impact of Virtual Reality (VR)
on tourist buying behavior of tourism products. Primary data was composed
from 100 respondents who used and experienced virtual reality in
information search, evaluation of alternatives, purchase decision, purchasing
and post purchase evaluation of the tourism products
Methodology: The data thus collected are analyzed using frequency and
multiple regression.
Findings: Based on the results, it has been identified that the impact of
VR (booking tour packaging with the help of Virtual Reality) in selecting the
tourism product (by viewing hotel through VR; VR tour experience; by
exploring cities through VR; viewing historical sites and monuments through
VR; by sightseeing the natural beauty through VR; impact the overall
experience of VR) on tourism industry is abundant.
Implications & Conclusion: The insights of the study have significant
theoretical and practical implications in the field of virtual reality in tourism.
Keywords: Virtual Reality; Tourist Buying Behavior, Booking, Tourism
Products, Tourist Experience
The sharing economy phenomenon, and the economic, social, and technological changes fueling its growth have challenged the hotel industry to rethink its experiential value proposition to the customer. But, is Airbnb taking a share of the existing hotel industry or is it just increasing the overall accommodations industry?
http://dx.doi.org/10.1016/j.annals.2017.05.013
Airbnb has grown very rapidly over the past several years, with millions of tourists having used the service. The purpose of this study was to investigate tourists’ motivations for using Airbnb and to segment them accordingly. The study involved an online survey completed in 2015 by more than 800 tourists who had stayed in Airbnb accommodation during the previous 12 months. Aggregate results indicated that respondents were most strongly attracted to Airbnb by its practical attributes, and somewhat less so by its experiential attributes. An exploratory factor analysis identified five motivating factors—Interaction, Home Benefits, Novelty, Sharing Economy Ethos, and Local Authenticity. A subsequent cluster analysis divided the respondents into five segments—Money Savers, Home Seekers, Collaborative Consumers, Pragmatic Novelty Seekers, and Interactive Novelty Seekers. Profiling of the segments revealed numerous distinctive characteristics. Various practical and conceptual implications of the findings are discussed.
Purpose
Accommodations providers in the sharing economy are increasingly competing with the hotel industry vis-à-vis the guest experience. Additionally, experience-related research remains underrepresented in the hospitality and tourism literature. The authors develop and test a model of experiential consumption to provide a better understanding of an emerging phenomenon in the hospitality industry. In so doing, the authors also expand Pine and Gilmore’s original experience economy construct.
Design/methodology/approach
Using data from a survey of 630 customers who stayed at a hotel or an Airbnb in the previous three months, the authors performed a multi-step analysis procedure centered on structural equation modeling to validate the model.
Findings
The authors demonstrate that the dimensions of serendipity, localness, communitas, and personalization represent valuable additions to Pine and Gilmore’s original experience economy construct. Airbnb appears to outperform the hotel industry in the provision of all experience dimensions. The authors further define the pathways that underlie the creation of extraordinary, memorable experiences, which subsequently elicit favorable behavioral intentions.
Practical implications
The findings suggest the need for the hotel industry to adopt a content marketing paradigm that leverages various dimensions of the experience economy to provide customers with valuable and relevant experiences. The industry must also pay greater attention to its use of branding, signage, and promotional messaging to encourage customers to interpret their experiences through the lens of these dimensions.
Originality/value
The study expands a seminal construct from the field of services marketing in the context of the accommodations industry. The Accommodations Experiencescape is offered as a tool for strategic experience design. The study also offers a model of experiential consumption that explains customers’ experiences with accommodations providers.
The advent of the “sharing economy” challenges not only the business of hotel industry but also the theories and models based on the conventional hotel industry. A key dimension of the hospitality industry is pricing. The aim of this study is to identify the price determinants of sharing economy based accommodation offers in the digital marketplace. Specifically, a sample of 180,533 accommodation rental offers in 33 cities listed on Airbnb.com is investigated using ordinary least squares and quantile regression analysis. Twenty-five explanatory variables in five categories (host attributes, site and property attributes, amenities and services, rental rules, and online review ratings) are explored for the intricacies of the relationships between pricing and its determinants.
We examine how financial assurance structures and the clearly defined financial transaction at the core of monetized network hospitality reduce uncertainty for Airbnb hosts and guests. We apply the principles of social exchange and intrinsic and extrinsic motivation to a qualitative study of Airbnb hosts to 1) describe activities that are facilitated by the peer-to-peer exchange platform and 2) how the assurance of the initial financial exchange facilitates additional social exchanges between hosts and guests. The study illustrates that the financial benefits of hosting do not necessarily crowd out intrinsic motivations for hosting but instead strengthen them and even act as a gateway to further social exchange and interpersonal interaction. We describe the assurance structures in networked peer-to-peer exchange, and explain how such assurances can reconcile contention between extrinsic and intrinsic motivations. We conclude with implications for design and future research.
OPEN ACCESS: http://www.emeraldinsight.com/toc/jtf/2/1
Purpose
Although networked hospitality businesses as Airbnb are a recent phenomenon, a rapid growth has made them a serious competitor for the hospitality industry with important consequences for tourism and for tourist destinations. The purpose of this paper is to analyse the nature of the phenomenon, its potential further development in the next five years and the impact this developments will have on tourism, on hotels and on city destinations.
Design/methodology/approach
A literature study, combined with scenario workshops and a Delphi panel, were used to map current trends and uncertainties. With this input, future scenarios were elaborated using the Global Business Network (“scenario cross”) method.
Findings
Network platforms as Airbnb are often classified under something called the “Sharing Economy”, a denomination that obscures their true nature. Airbnb is a challenging innovation to which traditional hospitality will have to respond. Its impact has at the same time led to a call for regulatory policies. The definition of these policies and the evolution of tourism are variables that determine future scenarios. Attempts to ban the phenomenon mean a disincentive to innovation and protect oligopolistic markets; more receptive policies may have the desired results if tourism grows moderately but in booming destinations they may lead to a harmful commercialization.
Originality/value
Until now, Airbnb has been described in conceptual studies about the so-called “Sharing economy”, or more recently in empirical studies about isolated effects of holiday rentals. This paper contextualizes the evolution of networked hospitality and seeks to synthesize the sum of its impacts, thus enabling businesses and local governments to define positions and strategies.
This study investigates the impact of Airbnb's listing on the hotel revenue in Korea. We use the panel regression model for this purpose. First, it finds that Airbnb's listing is not related to the hotel revenue. Even though the number of tourists is continuously increasing, most of them use hotels rather than Airbnb in Korea. Because the website of Airbnb has started from 2010 in Korea and has a low awareness, it has a less effect in Korea. The listing of Airbnb is rapidly growing in 2014. Given that the data of 2014 adds to the study, the result can be changed. Second, the estimate of the unemployment rate is strongly significant. If unemployment rate increases, the demand for hotel decreases. Because unemployment rate explains the present economic situation, the increase of the unemployment rate can imply a recession and the decrease of the trip can be followed. Third, the exchange rate has a positive effect on the hotel revenue, especially in Jeju. When the exchange rate is higher, the tourists from the abroad increase, and thus hotel revenue can increase. It implies that the tourists sensitively respond to the exchange rate. Forth, the estimates of the vacation dummy variable are strongly significant in Busan and Jeju. There is a ton of tourists in the holiday (especially summer) season, and thus it is common in the increase in the hotel revenue during this season.
Over the past few years the sharing economy has grown tremendously, disrupting the traditional tourism industry via the mass deployment of exponentially increasing capacity. In this new economy, ownership and access are shared by individuals creating, broadcasting and exchanging their own products and services. Rather than compete against the sharing economy, hotel chains have the opportunity to oversee this communal sharing and leverage the strength of their brands by extending them to peer-to-peer (P2P) rentals. This potential future of P2P rentals offers an attractive option for guests looking for a unique stay free of the current uncertainty of the informal economy in safety, legality and quality. This paper introduces propositions regarding the future state of the P2P rental market, presents a scenario detailing branded marketplaces, discusses the drivers of change, explores branding considerations and offers recommendations for future research.
As a result of the phenomenal growth of the sharing economy in the travel industry, investigating its potential impacts on travelers and tourism destinations is of paramount importance. The goal of this study was to identify how the use of peer-to-peer accommodation leads to changes in travelers' behavior. Based on two online surveys targeting travelers from the United States and Finland, it was identified that the social and economic appeals of peer-to-peer accommodation significantly affect expansion in destination selection, increase in travel frequency, length of stay, and range of activities participated in tourism destinations. Travelers' desires for more meaningful social interactions with locals and unique experiences in authentic settings drive them to travel more often, stay longer, and participate in more activities. Also, the reduction in accommodation cost allows travelers to consider and select destinations, trips, and tourism activities that are otherwise cost-prohibitive. Implications for tourism planning and management are provided.
This master thesis wants to measure the impact of Airbnb on hotel revenue
in Norway, Finland, and Sweden using a di�erence-in-di�erences strategy
with many time periods and di�erent level of treatment. We exploit the richness
of our data to di�erentiate among Airbnb listings and to identify which type of
hotel costumers Airbnb is more likely to attract.
Technology advances enable people to trade and sell their own travel products, which in turn create numerous transformation changes into the tourism industry structure, the nature of tourism products and experiences, the competitiveness of traditional and new tourism players and the process creating (social) value in tourism. This paper investigates the application and implications of collaborative commerce in tourism and provides suggestions for future research.
There is growing interest in the potential of grassroots innovations to play a role in the transition to sustainable production and consumption systems. However, the role of values has been little considered in relation to the development and diffusion of grassroots innovations. We develop a conceptual model of how citizens’ values are mobilised by grassroots innovations, drawing on the value theory of Schwartz et al. (2012) and the theory of collective enactment of values of Chen et al. (2013). Using the results of a large scale survey of free reuse groups (e.g. Freecycle and Freegle), which enable collaborative forms of consumption, we apply the conceptual model to explore how participants’ values are mobilised and expressed. We show that while the majority of free reuse group participants do hold significantly stronger self-transcendence (i.e. pro-social) values than the wider UK population, they also hold other values in common with that population and a minority actually place less emphasis on self-transcendence values. We conclude that diffusion of this particular grassroots innovation is unlikely to be simply value limited and that structural features may be more significant.
This article explores the emergence of Airbnb, a company whose website permits ordinary people to rent out their residences as tourist accommodation. The company was just recently established, but it has grown extremely rapidly and is now selling many millions of room nights annually. This rise is examined through the lens of disruptive innovation theory, which describes how products that lack in traditionally favoured attributes but offer alternative benefits can, over time, transform a market and capture mainstream consumers. The concepts of disruptive innovation are used to consider Airbnb's novel business model, which is built around modern internet technologies, and Airbnb's distinct appeal, which centres on cost-savings, household amenities, and the potential for more authentic local experiences. Despite Airbnb's growing popularity, many Airbnb rentals are actually illegal due to short-term rental regulations. These legality issues and their corresponding tax concerns are discussed, with an overview of the current state of regulatory flux and a possible path for resolution. Thereafter, the article considers Airbnb's potential to significantly disrupt the traditional accommodation sector, and the positive and negative impacts Airbnb may have on destinations. Finally, numerous questions for future research are proposed.
Sharing is a phenomenon as old as humankind, while collaborative consumption and the “sharing economy” are phenomena born of the Internet age. This paper compares sharing and collaborative consumption and finds that both are growing in popularity today. Examples are given and an assessment is made of the reasons for the current growth in these practices and their implications for businesses still using traditional models of sales and ownership. The old wisdom that we are what we own, may need modifying to consider forms of possession and uses that do not involve ownership.
Innovation has become a buzzword, regularly cited to convey any improvement made to an existing offer, regardless of the extent of newness. Tourism innovation has historically been viewed as either incremental or radical in nature, a binary developed within manufacturing. However, given that incremental improvements are the norm in the tourism sector and that radical innovation is an abnormality, the binary is not representative of tourism innovation. We suggest a three-level typology, based on field research in Europe and Australia, and informed by Rogers’ innovation diffusion model; the anthropological concept of liminality and its role in the search for tacit knowledge through weak network ties; and the need to ask ultimate (‘why’) rather than proximate (‘what’, ‘how’) questions. Since the term innovation is overused and the role of innovator therefore misunderstood, we introduce three alternate concepts: the ‘artist’, who is comparable to the innovator; the ‘artisan’, who represents early innovation adopters; and the ‘painter’, who epitomizes the early and late majority.
A disruptive innovation (i.e., one that dramatically disrupts the current market) is not necessarily a disruptive innovation (as Clayton Christensen defines this term). To aid in understanding why some innovations are more (or less) disruptive to the long-term health of incumbents, this article offers terminology and a framework complementary to Christensen's work, focusing on the diffusion pattern of the new product. The framework and model presented herein suggest that when an innovation diffuses from the low end upward toward the high end, a pattern called low-end encroachment, the incumbent may be tempted to overlook its potential impact. Three possible types of low-end encroachment are illustrated: the fringe-market, detached-market, and immediate scenarios. Conversely, when the pattern is one of high-end encroachment, the impact on the current market is immediate and striking. A three-step framework is identified to assess the potential diffusion pattern and impact of an innovation, thereby helping a firm determine the threat or opportunity that an innovation represents.
This study examined the relationship between the price positioning of Airbnb listings, measured in price difference between a hotel property and the nearby Airbnb listings as well as price dispersion among these Airbnb listings, and the performance of nearby hotels. An exploratory analysis using field data points collected from the Airbnb listings and their hotel counterparts in the metropolitan area of Austin, Texas between Quarter 3, 2008 (debut of Airbnb in Austin) and Quarter 2, 2011 reveals intriguing findings. The entry of Airbnb listings was penetrative to local hotels. However, the price positioning of Airbnb, manifested in higher average price as compared to nearby hotels, as well as larger price dispersion among individual listings, significantly mitigated such penetration. Important theoretical contributions and practical implications for hotels are discussed.
Millions of tourists have used Airbnb accommodations, and Airbnb is frequently discussed in terms of its current or future impacts on hotels. The purpose of this research was to investigate such impacts by determining the extent to which Airbnb is used as a hotel substitute and to examine how Airbnb guests expect their accommodations to perform relative to hotels. Together, these analyses were intended to provide empirical insight into Airbnb’s status as a disruptive innovation. The study involved an online survey of over 800 tourists who had used Airbnb within the previous year. Nearly two-thirds had used Airbnb as a hotel substitute. When considering traditional hotel attributes (e.g., cleanliness and comfort), Airbnb was generally expected to outperform budget hotels/motels, underperform upscale hotels, and have mixed outcomes versus mid-range hotels, signalling some – but not complete – consistency with the concept of disruptive innovation. Numerous practical and theoretical implications are discussed.
This short essay proposes a theoretical model for regulating the short-term rental market, which is typified by online markets such as Airbnb.com. The basic mechanism proposed here is a "transferable sharing right" (TSR), which is modeled on existing transferable development rights regimes. The proposed TSR regime would provide cities a means of regulating short-term rentals while also charging a fee equal to externalities and lost city revenue resulting from short-term rentals. Further, TSRs could be used to re-invest in neighborhoods where short-term rentals occur or to drive economic development to neighborhoods where cities seek to encourage tourism.
Peer-to-peer markets, collectively known as the sharing economy, have emerged as alternative suppliers of goods and services traditionally provided by long-established industries. The authors explore the economic impact of the sharing economy on incumbent firms by studying the case of Airbnb, a prominent platform for short-term accommodations. They analyze Airbnb's entry into the state of Texas and quantify its impact on the Texas hotel industry over the subsequent decade. In Austin, where Airbnb supply is highest, the causal impact on hotel revenue is in the 8%-10% range; moreover, the impact is nonuniform, with lower-priced hotels and hotels that do not cater to business travelers being the most affected. The impact manifests itself primarily through less aggressive hotel room pricing, benefiting all consumers, not just participants in the sharing economy. The price response is especially pronounced during periods of peak demand, such as during the South by Southwest festival, and is due to a differentiating feature of peer-to-peer platforms-enabling instantaneous supply to scale to meet demand.
Purpose
To tackle one of the main negative consequences of the sharing economy, namely the growth of the informal sector, the aim of this paper is to evaluate for the first time the impacts of the informal sector on the hospitality industry, and then to discuss what needs to be done to prevent the further growth of the informal sector in this industry.
Methodology/approach
To evaluate the impacts of the informal sector on the hospitality industry, data is reported from 30 East European and Central Asian countries collected in 2013 in the Business Environment and Enterprise Performance Survey.
Findings
The finding is that 23% of hotels and restaurants in Eastern Europe and Central Asia report competing against unregistered or informal operators and 13% view these informal competitors as a major or severe obstacle. The larger the business, the greater is the likelihood that the informal sector is considered their biggest obstacle.
Practical Implications
To prevent the further growth of the informal sector in the hospitality industry, regulation of the sharing economy will be required. To achieve this, it is shown that state authorities need to adopt both direct control measures that alter the costs of operating in the informal sector and the benefits and ease of operating formally, as well as indirect control measures that reduce the acceptability of operating in the informal sector.
Originality/value
This is the first paper to evaluate the impacts of the informal sector on the hospitality industry and to outline the policy measures required to prevent its further growth with the advent of the sharing economy.
In this paper we investigate the Airbnb phenomenon from the dual perspective of their customers and competitors. We use two different methods to collect data: an online survey administered to customers of Airbnb and traditional hotels, and in-depth interviews with hotel executives. Our survey findings suggest that there are significant differences between the type and motivation of customers that book Airbnb compared to those that book traditional hotels. Further, the interviews with hotel executives indicate that Airbnb is not considered to be a significant disruptor and/or competitor by the major players in the hospitality industry, though the smaller and mid-range hotels are contemplating adjustments and interventions in anticipation of increased competition from Airbnb. We discuss these findings as well as implications for practice and policy and offer suggestions for future research.
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This paper provides an objective, systematic and holistic review of the sharing economy (SE) academic literature to uncover the theoretical foundations and key themes underlying the field by using co-citation analysis and content analysis. Sixty-six publications on sharing economy with ten papers related to tourism and hospitality from 2010 to 2015 (inclusive) have been identified. This paper revealed three broad areas of foci with sharing economy research in general: (1) SE's business models and its impacts, (2) nature of SE, and (3) SE's sustainability development as well as two areas of foci in tourism and hospitality specifically: (1) SE's impacts on destinations and tourism services (2) SE's impacts on tourists. The sharing economy has a strong intellectual tradition from lifestyle and social movement field, consumption practice and sharing paradigm. This paper presents a more robust framework and holistic understanding of the sharing economy field and calls for a new theory-informed research agenda on sharing economy to coalesce multi-level perspectives.
Purpose
The purpose of this paper is to identify the state of academic research on innovation in tourism. The authors present a systematic review of the literature, different research approaches and perspectives on tourism innovation; offer a synthesis of our findings and provide a discussion and proposals for future research.
Design/methodology/approach
Existing studies on innovation in hospitality and tourism (included in the Web of Knowledge database) were reviewed, and their limitations were identified. A procedure used in previous studies (Crossan and Apaydin, 2010; Tranfield et al., 2003; Becheikh et al., 2006) was applied. Moreover, aiming to reveal theoretical foundations of tourism innovation research and identify their structure, a bibliometric analysis was performed.
Findings
This paper identifies 152 published papers that represent the major efforts in expanding the body of research on innovation in hospitality and tourism. The importance of innovation for business and regional competitiveness and success has been recognised by both researchers and practitioners. In the papers included in the sample of this paper, the authors identified a general consensus that much remains to be done in the development of the theory of innovation in tourism. Through bibliometric analysis, nine co-citation networks, or clusters, were retrieved by applying co-citation relations among the most cited authors. The examination of these nine clusters revealed some dominant themes that characterise the field.
Research limitations/implications
The authors used three databases: Science Citation Index Expanded, Social Sciences Citation Index (SSCI) and Arts & Humanities Citation Index. While these databases may not include all relevant research, the authors, nonetheless, believe that by using a rigorous procedure in reviewing the literature systematically, they were able to reduce the probability of neglecting any information that would critically change the content of the present paper.
Practical implications
The aim of this paper was to bring together the prior research with presently existing models that may be used in further research. For the continuation of the research, the authors propose additional studies with the aim of theory development. By introducing new theoretical ideas and theoretical models, more qualitative and inductive research would help to stimulate further work. As stated above, researchers could go further by undertaking quantitative methods to empirically verify the theoretically proposed models.
Originality/value
Since the last review (Hjalager, 2010) of past studies in tourism innovation, mostly focusing on studies up to 2009, tourism innovation research has grown noticeably in terms of diverse topics. In this paper’s database, the year with the most publications was 2012 with 48 papers, followed by 2014 with 42 (by 19 September), 2010 and 2011 with 41 and 2009 with 29. To the authors’ knowledge, no updated reviews focusing on innovation in tourism have been published recently. This study, consisting of a systematic review of academic literature, includes analyses of the international context, the methodology used, the points of view, the level of analysis (micro-level, macro-level and general level) and the type of innovation discussed in the paper. Moreover, the authors did not find any studies that used bibliometric analysis to identify the structure of the theoretical foundation of research in the area of innovation in tourism.
Although the deteriorating profitability of the US lodging industry has been repeatedly attributed to overcapacity, there has been little research on the causes of overcapacity. The authors suspect that this issue stems from the lack of a working definition of optimal capacity level. This study evaluates the optimum capacity of the US lodging industry based on the fundamental price theory, which posits that prices are determined through equilibrium. Results of the simultaneous equations model show that the industry has an incentive to maintain overcapacity because the outcomes of under-capacity are even less desirable. The uncertainty of demand further encourages overcapacity to some extent. Historical overcapacity cycles in the US lodging industry suggest that overcapacity seems to be an outcome of unexpected demand shocks, rather than the consequence of irrational overbuilding. Implications for the industry and suggestions for future research are presented along with the study findings.
Collaborative consumption, often associated with the sharing economy, takes place in organized systems or networks, in which participants conduct sharing activities in the form of renting, lending, trading, bartering, and swapping of goods, services, transportation solutions, space, or money. In this paper, a framework on the determinants of choosing a sharing option is developed and tested with two quantitative studies by applying partial least squares path modeling analysis. In study 1, users of the B2C car sharing service car2go (N = 236), and in study 2, users of the C2C online community accommodation marketplace Airbnb (N = 187) are surveyed. The results reveal the satisfaction and the likelihood of choosing a sharing option again to be predominantly explained by determinants serving users' self-benefit. Utility, trust, cost savings, and familiarity were found to be essential in both studies, while service quality and community belonging were identified solely in study 1. Four proposed determinants had no influence on any of the endogenous variables. This applies to environmental impact, internet capability, smartphone capability, and trend affinity. Finally, research and managerial implications are discussed. Copyright © 2015 John Wiley & Sons, Ltd.
Analyzing urban hotel properties located in major metropolitan markets during the 1989 to 2000 period, this study provides empirical evidence that various measures of current income, expectations of future income, the own price, and the price of substitutes, are statistically important factors influencing lodging demand at the property level. This study examines the relationship between lodging demand and these economic factors at the property level using a large cross section of properties and a long time horizon. The results show that income elasticities computed at the property level are significantly lower than those computed using aggregate lodging data. The results also show that the magnitude of the impact of GDP on lodging demand is similar to the magnitude of the sum of disposable personal income and corporate income. The relative magnitude of the impact of each of these economic factors on lodging demand varies across lodging market segments.
The merits of being customer-oriented for firm innovation have long been debated. Firms focused on their existing customers have been argued to be less innovative. This paper distinguishes between mainstream and emerging customer orientations and examines their effects on the introduction of disruptive and radical product innovations. Radical product innovations draw on a substantially new technology and could initially be targeted at a mainstream or an emerging market. In contrast, disruptive innovations are initially targeted at an emerging market, and may not involve the newest technology. This paper hypothesizes that mainstream customer orientation is negatively related to disruptive innovation and positively related to radical innovation, and that emerging customer orientation is positively related to disruptive innovation. To test these hypotheses, longitudinal and multiple informant data from senior executives in 128 SBUs of 19 Fortune 200 corporations are analyzed, with technology scanning and willingness to cannibalize as key control variables. The results support the hypotheses, providing evidence for contrasting effects of being oriented to mainstream customers and/or emerging customers on radical and disruptive innovations. Mainstream customer orientation has a positive impact on the introduction of radical innovations but a negative impact on disruptive innovation, while emerging customer orientation has a positive effect on disruptive innovation and is unrelated to radical innovations. Technology scanning is positively related to radical innovation but not to disruptive innovation, supporting the idea that disruptive innovation may not require new technology. In contrast, willingness to cannibalize is positively related to disruptive innovation but not to radical innovation, supporting the idea that radical innovation does not require cannibalization of existing investments. Additionally, mainstream customer orientation is found to have a near-zero correlation with emerging customer orientation, indicating that the two can coexist and can be pursued simultaneously.
The Las Vegas Strip has seen astonishing tourism development in the 1990s. The study examined the inter-relationship between the room supply and demand functions, and room rate in Las Vegas employing econometric variables in a simultaneous framework during 1992–1999. The results suggest that room rate for the current month, the 3-month Treasury bill rate and gaming revenue per room for the 12-month prior are the three determinants of the room supply function, while consumer price index for the current month is the only determinant of the room demand function.
The three specific types of disruptive innovations, business-model innovations, and radical (new to the world) product innovations, are discussed. The two innovations create different kinds of markets, pose different challenges for established firms and have different implications for managers. The first model innovators simply redefine what an existing product or service is and how it is provided to the customer. The second model innovation introduces new products and value propositions, disturbing the prevailing consumer habits and behaviors in a major way. All the three types of innovation may follow a similar process to invade existing markets and may have equally disruptive effect son incumbent firms.
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