ALTERNATIVE ACCOMMODATION: THE FACTORS DRIVING TRAFFIC

Abstract

Tourism and hospitality are multibillion-dollar industry with a huge growth potential in its ancillaries. Accommodation sector, inter alia, is a vital facet of this industry. Traditionally, the main drivers in the accommodation sector were formal hospitality players. However, the advent of the sharing economy has resulted in an increase in alternative accommodation opportunities. Travellers changing tastes and expectations, along with the shift toward digitalization, have connected travellers and hosts on a single platform. In addition, the aspirations of travellers to have more authentic local experience coupled with novelty and sustainability has influenced the choice of alternative accommodation over hotels. The study discusses about latest trends of accommodation sector. It also provides an insight about the various attributes that affect the decision of traveller opting for alternative accommodations.

Full text

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THE JOURNAL OF ORIENTAL RESEARCH MADRAS
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2021
ALTERNATIVE ACCOMMODATION: THE FACTORS DRIVING TRAFFIC*
BY
Shraddha Agarwal
Research Scholar: School of Doctoral Research and Innovations, GLS University, Ahmedabad,
Assistant Professor, Narayana Business School, Ahmedabad
Email- Shraddhaagarwal7@gmail.com
Dr. Juhi Shah
Associate Professor, GLS University, Ahmedabad
Email- juhi.shah@glsuniversity.ac.in
Abstract
Tourism and hospitality are multibillion-dollar industry with a huge growth potential in its ancillaries.
Accommodation sector, inter alia, is a vital facet of this industry. Traditionally, the main drivers in the
accommodation sector were formal hospitality players. However, the advent of the sharing economy
has resulted in an increase in alternative accommodation opportunities. Travellers changing tastes and
expectations, along with the shift toward digitalization, have connected travellers and hosts on a single
platform. In addition, the aspirations of travellers to have more authentic local experience coupled
with novelty and sustainability has influenced the choice of alternative accommodation over hotels.
The study discusses about latest trends of accommodation sector. It also provides an insight about the
various attributes that affect the decision of traveller opting for alternative accommodations.
Keywords: Sharing Economy, Alternative Accommodations, Vacation Rentals, Disruptive
Innovation, Local authenticity, Sustainability
Received 26 May 2021, Accepted 03 June 2021, Published 11 June 2021
Correspondence Author: Dr. Juhi Shah
Introduction
India, a geographically and culturally diverse land, has a lot of potential for tourism and hospitality.
Amongst the service sectors, the Indian Tourism and Hospitality industry is a key growth driver. The
inflow of international tourists to the country over the years has boosted the hospitality industry and
with this India has emerged as key player in the global scenario (Sharma and Thusoo, 2017). The
hospitality industry is a wide range of services sector areas that encompasses accommodation, cruise,

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event planning, theme parks, transport, etc. Leisure time followed by higher disposable income
facilitates this multibillion-dollar hospitality industry.
The tourism and hospitality industry is undergoing a massive trend evolution. Changing demographics,
advancement in technology, shifting social and psychographic perspectives influences give rise to new
tourism trends (Guttentag, 2015). There are various factors that are doing major contributing to reshape
the industry dynamics. Virtual Communities such as Social networks, Trip Advisor, Blogs, Vlogs, etc.
made the system highly transparent leading to a major improvement in hospitality services.
The newer generation wants to closely experience traditional culture (Roland Atembe et al., 2015),
therefore, thinks for opting various online travel aggregators such as Airbnb, Homeaway, Couch
surfing, Stayzilla, OYO homes, homestay.com, etc. These travel aggregators list the host properties
on their site leading to larger pool of accommodation options for travellers (Stors and Kagermeier,
2017). The online tourism aggregators have reduced information search costs, and have increased the
awareness of tourists of potential destinations (Dash & Sharma, 2018). This has also enabled some
innovative trends in tourism, including eco-tourism, adventure tourism, heritage tourism, medical
tourism, pilgrimage tourism, dark tourism and so on.
With a view to changing tourism facets and rise in tourism genre customers now a days are looking
for unique experiences and also request for extreme personalization. If the customer has the experience
that is closer to their desires and expectations the chance of using that service again by the customer
increases. Moreover, there are many web portals/apps through which hoteliers can provide their
services easily to customers and can help their customers to have a better experience, making their
services easily accessible and time-saving. Artificial Intelligence a machine learning technology helps
the customers to have personalized experience of booking tours and trips. Many customers make their
bookings with the help of internet chatbots, which uses artificial intelligence technology to solve the
queries and assist the customers when human operators are not available.
Accommodation
Accommodation sector plays a very significant role in facilitating holiday experience. It offers a
variety of different options for customers, catering to different tastes, budgets and requirements.
Lodging services like hotels, motels, cruises, resorts, camp stays, bed and breakfast etc. that provide
the guests convenience, service, entertainment etc. which gives… But these conventional services may
not provide various other dimensions that are important to deeply experience the richness of the local
culture/place. Under these means of accommodation, the traveller is not able to experience all the
benefits of the place like local culture, cuisine, folk activities, personalization, serendipity, knowledge
of local places etc (Foxley, 2001)(Mody, Suess and Lehto, 2017). It is also observed that sometimes
the service and the physical evidence dimensions of hotels at two different places are so similar that
the traveller does not even imbibe the essence of the place of visit. This actually happens with most of
the travellers, which strongly contributes to the rise of sharing economy perspective.

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The shared economy, also known as shared consumption, gig economy, or peer-to-peer (P2P), is an
economic model that involves businesses, start-ups, and individuals purchasing, offering, or
exchanging access to goods and services through an internet community-based network. (Boswijk,
2016). Through the sharing economy concept, strangers at physical distances are able to access to
desire assets in exchange of a reasonable price that may be much lower than that of owning them. On
the other hand, the owner is able to fetch reasonable return for the idle time (Panda, Verma and Mehta
2015).
Sharing economy in Tourism
The concept has a strong impact on tourism and hospitality industry globally (Bakker and Twining-
Ward, 2018) which is evident by the success of Airbnb. The ten-year-old start-up from 2008 has
become one of the world’s largest platforms for accommodation, having listing around 4.5 million
properties across 81,000 cities and catering over 300 million guests (Laghate, 2018). The disruption
created by the young start-up's collaborative business model facilitated by digital transformation and
uniqueness of offerings which focuses on providing cost benefits, household amenities, convenience
and the potential for better authentic local experience (Guttentag, 2015). The concept of shared
economy is a persisting global trend in many developed economies (Levine, 2015) and now is gaining
momentum in India (Kaushal, 2017). Indian millennials, who make up a significant portion of the
population, are promoting the concept of sharing thereby maximising the use of assets and skills.
Rising adoption of rentals due to lower prices coupled with growing number of internet and
smartphone users are some of the key factors positively impacting the growth of the organized shared
economy marketplaces(Sung, Kim and Lee, 2018). As a result, ventures like Uber, Airbnb, Ola, OYO
etc. are flourishing.
Research methodology
The study is a secondary data based descriptive research that focuses on the insights and the factors
influence the traveller in choosing alternative accommodations.
Research objectives
Following are the objectives of the present study:
i) To study the latest trend in the accommodation sector.
ii) Understanding the concept of sharing economy in tourism.
iii) To identify the various factors responsible in choosing alternative mode of accommodation other
than hotels.
Literature review
Sharing economy as granting temporary access to customers to use one’s under- utilized assets in
return for money (Neeser, 2015). The core concept says why to own the depreciating assets when one

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can access and pay for use. The rise of the Collaborative Economy is driven strongly by the paradigm
shift in societal, economic and technological market forces. Thus, sharing economy disrupts current
scenarios that keep organizations and companies disintermediated by clients empowered to deal
directly with each other (With, Tran and Silva, 2013).
Sharing economy platforms facilitate the interaction of non-commercial accommodation providers
(hosts) with guests. The non-commercial nature of hosts is a necessary attribute to define the concept
(Dolnicar, 2019). Commercial accommodation providers majorly aim for profit maximization on the
contrary hosts aims in meeting new people and share the beauty of their home in addition to earn
money (Grimmer, Vorobjovas-Pinta, & Massey, 2019; Dolnicar, 2017).
Sometimes the primary shared asset is “human relationship, rather than a house (Jung et al., 2016).
According to the report, increased competition and more perceptive and novelty-seeking travellers are
among the reasons for the increasing popularity of alternative accommodation. (Ranasinghe, 2015)
which is facilitated by communication technology (Bashir and Verma, 2016). Technology in tourism
has increased the accessibility of alternative options for accommodation. (Roland Atembe et al., 2015)
There are wide variety of alternative accommodation under unorganised/ uncategorised informal
tourism market, namely Service apartments, Guest houses and Commercial homes such as Homestay
and Bed and Breakfast (Gunasekaran and Anandkumar, 2012). Further, Homestay, Bed & Breakfast,
Bed & Breakfast lodge, Bed & Breakfast cottages, Bed & Breakfast hotel, and Country Inn were
among the six categories of commercial homes identified by Professional Association of Innkeepers
International (PAII), 2009. The Service apartment concept has no standard definition but it is typically
considered to provide short-term, self-contained accommodation with additional services (Foxley,
2001). Guest house is smaller than average hotel and with a limited number of rooms and facilities.
Commercial home refers to an interaction take place with a host and/or family usually living on the
premises (Sweeney and Lynch, 2007). Furthermore, a homestay is a traditional form of
accommodation in which visitors stay in a local residence in the town they are visiting. (Thapa, Manavi
and Malini, 2018).
The idea of the "sharing economy" first appeared in the early 2000s as a modern business model, and
many businesses are currently engaging in the shared economy to avoid energy crises and environment
degradation, thus leading to long-term sustainability(Yaru et al., 2018). Sharing is a modern method
of consuming that is more powerful, intelligent, and human-centered than ever before. Consumers are
benefited greatly from alternative accommodations because they can make use of goods or services
that they do not own (Dolnicar, 2019). Various social (e.g., social dynamics and environmental issues)
and economic (e.g., price value) aspects have influenced alternative accommodations(Sung, Kim and
Lee, 2018). Airbnb, which rents out rooms, is a good example of the shared economy startup where
Joe Gebbia and Brian Chesky in San Francisco pioneered the concept of renting out unused rooms in
their home to raise extra income that turned into a unicorn(CB Insights, 2020).

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According to Lee & Kim, consumers of alternative accommodations consider these accommodations
to be affordable and more distinctive than conventional accommodations. Customers and providers of
Alternative lodging prefer reciprocal cooperation and contribute information, resources, and service
to one another. Sharing economy accommodations are expected to grow for the foreseeable future as
it is predicted that sustainability and environmental concerns will be important issues over the next
decade(Walter, Regmi and Khanal, 2018).
Table 1. Factors influencing to choose alternative accommodation.
Variables and attributes influencing traffic Researcher
Enjoyment, Economic benefits (Lutz & Newlands, 2018) (So, Oh and Min,
2018) (Tussyadiah, 2014)
Independence through ownership, Modern
style and social experience Cost savings,
Familiarity, Trust and utility Price sensitivity
(Tussyadiah, 2017) (Guttentag, 2016)
Price, Functional attributes, Unique and local
authenticity, Novelty, Travel bragging, and
sharing economy ethos
(Sung & Kim, 2018)(Jamal, Othman and
Muhammad, 2011) (Rasoolimanesh,
Dahalan and Jaafar, 2016)
Sustainability, scenery, serendipity
(Sung, Kim and Lee, 2018) (Bhan and
Singh, 2014) (Mody, Suess and Lehto,
2017)
Subjective norms, perceived behavioural
control, perceived value, unique experience
expectation, familiarity, e-WOM
(Bae, Lee, Suh, & Suh, 2017)(Mapjabil et
al., 2017)(Walter et al., 2018)
Accommodation Rating, rating volume,
reviews, Media Richness (MR)
(Chen & Chang, 2018)(Panda, Verma and
Mehta, 2015)
Various tourist demographics prefer alternative hoteliers over hotels for a variety of reasons, including
enjoyment of local lifestyle and scenery, meeting local people and enjoying local history, or possibly
saving money(Lutz and Newlands, 2018). As per various studies, feeling welcomed at someone's
home and the hospitality of hosts are two of the most important factors that influence tourists' decision
to stay in a (Tussyadiah, 2017). Further, findings such as home-cooked food hygiene, scenic beauty,
affordable price(Rasoolimanesh, Dahalan and Jaafar, 2016) authentic local experience or local
information by the host are important attributes that results in generating positive emotions towards
homestays. Thus it can be estimated that, optimistic sentiment against the qualities of homestay
accommodation is much higher than bearish attitudes(Thapa, Manavi and Malini, 2018).
Furthermore, the booming digital economy and internet have taken guests and hosts together on one
canvas, creating a revolutionary trend in the hospitality industry. Consider, for example, numerous
travel aggregators such as Airbnb, homestays, and couch surfing, which focus on value, household
facilities provides a stronger potential for more authentic local experiences. (Stors and Kagermeier,

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2017) the availability of reviews and ratings along with the volume of responses give a better picture
in the minds of the consumer. consumers 10 to opt for such accommodations because of the existence
of eWOM backed by various blogs and vlogs. This rise is explored through the lens of disruptive
innovation theory, which explains how products that lack historically preferred characteristics but
offering alternative benefits can change a market and attract mainstream consumers over time
(Guttentag, 2015). In view of the wide variety of alternative accommodation market one can list or
book entire place (holiday home), private room in a shared house, shared dorm/room etc. depending
on one’s expectation (Airbnb.co.in,2019).
Finding and Conclusion
The tourism and hospitality industry is facing a massive paradigm shift due to the taste and preference
of millennials. As per the understanding from literature and articles it can be said that the desires and
preferences of travellers vary from one another. Travellers today expect to widen the dimensions of
the travel rather than just go for a very obvious, similar or unproductive experience. They are looking
for high personalization and specialization where standardization is no more a norm. Additionally, in
the present scenario, it’s the prime responsibility of all the corporations and customers to preserve the
environment, therefore, eco-friendly tourism/ sustainable tourism models are trending nowadays.
Thus, hospitality players are focussing on the concept of value creation concentrating on niche
segments.
The sharing economy concept has greatly changed the travel industry over the past few years. While
traditional bed and breakfasts have operated in unorganized form since decades but the technological
explosion and presence of web-based platforms like homestay, Airbnb, yatra, MMT, Goibibo,Trip
Advisor etc. allow people to share part or all of their home, apartment, condo, boutique space, farms,
tree houses, etc. with the traveler. Various booking aggregators categorized these as renting entire
house, private room with some common space, proper shared space in a house or hostel setting. The
categories under alternative accommodation allows the travellers to experience their destination a little
more locally making their stay value-driven and experience-oriented.
As per the findings from the rich literature present in this regard it was observed that people prefer to
opt for alternative accommodation for the purpose to create long term social relationships, boosting
the host community, empowering sustainability perspective, societal, economic benefits. Unlike hotels
the alternative accommodations provide various functional benefits also to the consumers in term like
larger space, pantry or functional kitchen along with option of home cooked food, better access to
household amenities, convenience in location etc. These non- commercial accommodations tend to
provide highly unique experience contributed by the architecture, location, ambience etc. Well
uniqueness of experience is not confined to the visual appeal of the place; it is also gratified by various
extreme customization efforts done by the host community.

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Another factor that has been identified in the literature as influencing people's choice of alternative
lodging is the availability of reviews, ratings, and a robust feedback process on travel aggregator
websites/apps, as well as the presence of social media platforms. The age of EWOM has changed the
fate of these alternative lodgings because prospective customers now have access to better insights
and experiences from people who have previously visited the place. As the result, people's scepticism
about staying in alternative accommodations has been greatly diminished.
Staying in alternative lodging allows you to not only see but also experience a destination. Guests will
be able to experience how the locals live their lives, which is almost impossible to do while living in
a conventional hotel. Another attribute that separates alternative lodging from hotels is the hosts.
As host is an important element will welcome you and make your stay as enjoyable, authentic and
memorable as possible. Also, the interaction with other guests is a good feature of such
accommodations. This increases the value creation and provides the guest with a wider experience
landscape.
Implication
Alternative accommodation establishments will be better able to know their customers as a result of
the aforementioned results, and will be able to implement empathetic marketing campaigns that will
connect to this group of visitors and build meaningful points of differentiation.
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