An analysis of the impact of Airbnb on hotel performance: The influence of price differences

An analysis of the impact of Airbnb on hotel performance: The influence of price differences

While the extant literature in the hospitality and tourism field has documented the economic impacts of Airbnb on the lodging industry, the price competitiveness of Airbnb was not explicitly considered. Given one of the primary advantages of Airbnb is price competitiveness, this study argues that the impact of Airbnb on the lodging market will be more significant when consumers find Airbnb more price-competitive than traditional accommodations. Hence, this study aims to: 1) identify the financial impacts to the lodging industry in Hawaii, including net impact on revenue (RevPAR), and 2) investigate the impacts to the lodging industry in the same market segments and across different market segments. By comprehensively examining multiple sources of data on hotels and Airbnb, the findings of this study provide policy makers and stakeholders with important information needed to successfully and strategically deal with Airbnb.