Research activities have deduced that the reasons as to why individuals go for the Airbnb include the availability of an array of household amenities, house location being convenient, ability to experience local culture, and ultimately, low costs (Mathews, 2017). The industry of hospitality has, for a long time; benefited from travelers through potential bookings. However, the traditional booking trend is slowly shifting to a new, better concept brought about by the Airbnb tool. What makes it even more advantageous over the traditional booking concept is the aspect of price. Many travelers would go for it because it is cheaper. Again, there are introduced ranges of housing including apartments, villas, and castles which offer absolute comfortability at lower prices than before (Kurtz, 2014). Due to such comfortability and low prices, the hotel industry in the U.S has been facing a lot of losses.
This research activity is geared towards determining and analyzing the reason as to why Airbnb offers the selected services as provided by them. However, we shall also review the reasons as to why clients prefer the services offered by Airbnb Company to those offered in the traditional hotel industry. The review will also include the impact brought about by Airbnb in the hotel industry.
The pieces of information provided in this activity, all of which are obtained from several resources show that many travelers are comfortable using the Airbnb services. It is the practicality of such services that this research activity is interested in amidst reasons that explain why travelers are attracted to them. This activity has therefore managed to perform its research on the subject matter from several sources as outlined in the reference section. The sources highlight the issues about Airbnb services alongside the choices of the travelers with regards to hospitality management issues.
Most of the resources required for this activity happen to be irrelevant with regards to the subject matter. This activity mainly required literature resources that focus on advantages of the services offered by Airbnb Company as well as the competition it offers the traditional hotel companies within the U.S. However; there is no such connection to the sources of literature on the controversies within the services offered by Airbnb. Only a little qualitative analysis was provided in the solicited literature. Most of the information obtained lacked statistical proof. It should be considered that statistical facts would be vital for this activity.
Studies in hotel management show that most people have abandoned the traditional hotel booking methods. Currently, the Airbnb services have been regarded by several travelers thus affecting businesses basing their operations on the traditional hotel booking system in the U.S. A recent report on the Airbnb services impact regarding the lodging market has illustrated that the traditional industry has realized a lot of losses. Statistics showed that direct losses that were experienced by such traditional organizations are valued at 21% while the ancillary losses stand at 7%. However, the construction losses sum to around 51%. Overally, the percentage losses portray the level at which the Airbnb services are enhancing (Zervas, Proserpio & Byers, 2014).
One of the identified factors that influence the process of decision making for customers is the issue of household amenities. Airbnb organization has been associated with the provision of houses that are considered to be more feasible with regards to their features when compared to the traditional styles of accommodation. Due to such reasons, travelers are always attracted to the services provided by Airbnb. It is also worth noting that Airbnb provides clients with the ability to rent an entire home without necessarily having to share the same with others. By so doing, there is the aspect of security and privacy maintenance
As much as the Airbnb has brought significant changes in the hospitality sector, it has resulted to several disadvantages within the sector. For instance, the capitalist has been rampant on the issue claiming that the government should intervene by holding negotiations on how to attain progress that is balanced in the traditional as well as the modern hospitality sub sectors. The advent of firms like Airbnb has resulted to autonomy in the market, and thus the traditional firms are afraid their operations might shut down (Quattrone et al. 2016). The cheaper the housing prices, the more customers while veering from the traditional hospitality firms. What traditional firms are so afraid of is the fact that they are bound to operational protocols and policies inclusive of tax payments thus they are unable to lower prices beyond certain a limit. However, the Airbnb Company has no policy or regulations that they are bound to, thus the lower prices they offer (Guttentag 2016).
As much as most clients are happy that they can find housing services at low costs, this factor happens to be of many controversies. The cheap houses provided are at times just advertised as so but are always erected against the policies and protocols of local renting. Take an example of New York City where there is a policy prohibiting hospitality providing agencies from offering rentals and rooms for a duration less than thirty days which is a policy only applicable in case the tenants will have to share such apartments (Coldwell 2017). Also, according to the policies, the tax has to be paid regardless of holiday accommodations. In Barcelona, Airbnb was fined for going against the tourism laws. For so doing, the government charged a fine of €30,000. The company is also facing modern criticism in certain parts of the U.S including San Francisco, New York, New Orleans, Berlin, and Malibu (Levendis &Dicle, 2016). Even though such criticisms are on the rise, Airbnb has remained a steadfast choice for those wishing to book houses while on vacation.
For the purpose of statistical proof, this research activity performed an online survey involving 20 participants. The reason for so doing was to solicit the varied responses they had on the subject matter.
Among the materials used were online prepared questionnaires, video messages, interviews, and video calls.
From the 20 participants, 13 voted household amenities as the sole factor they are going to the Airbnb services instead of the traditional services (Marin, 2015). Also, approximately 61% of the registered participants claimed that the booking services offered by Airbnb were far much better than that done by budget hotels. However, there was a 26% of the respondents that opted to make bookings since they could no longer get better housing opportunities as provided by Airbnb with regards to their accommodation resources (Ryerson University 2017).
There is a large possibility of the services offered by Airbnb to affect traditional hospitality services. From the survey performed, it is quite obvious that the travelers are opting for Airbnb due to its cheap nature and the extensive services it offers when it comes to housing. Airbnb had made an immediate impact in the hospitality industry since its inception eight years ago (Aznar et al. 2017). Most travelers, as mentioned severally, haven’t found alternative companies that offer better services in the country as compared to Airbnb. However, the survey results portray that there are several other reasons as to why people are attracted to the firm. With the guarantee that travelers can receive better living conditions while on vacation, customers have been keen on making Airbnb their booking destination while traveling.
The figure below shows the Number of Airbnb users as at 2012
Source: Airbnb Company; RJ Metrics
Customers are lured by the fact that they can experience local cultures whenever they go for the services of Airbnb. Travelers have thus opted for independent firms linked to Airbnb for hotel rooms (Russell & Wall, 2015). The services offered by Airbnb are divided into two subsections. These are guests and hosts services. While the hosts are obligated with the provision of rooms for which Airbnb Company charges a certain amount, guests are associated with the selection and payment of these rooms. By so doing, By so doing, the company has been able to make lots of profits per booking. However, the company has been able to earn revenue from the hosts as much as they earn profits from the guests making it register tremendous profits. It is due to such reasons that the company offers low rates to the clients as compared to the traditional company rates (Net, 2017). Another factor that results in such low prices is the issue of location convenience. Due to such a factor, the business can offer quality apartments. Airbnb Company mainly goes for houses around the beach and other beautiful serene regarded by the customers. The convenience of the housing location contributes a lot to the decision-making process with regards to the clients. Such places as the beach areas or other attractive serene are always perfect spots preferred by most people who are on vacation. Again, apart from just the beautiful serene, the company ensures that everything comes in a complete package.
It is also worth noting that Airbnb Company has ensured that every experience offered to the clients is adjoined to one peaceful surrounding. To understand the manner in which such a location is of importance to the client, consider the fact that travelers would consider paying higher prices for places that are more attractive. Such intensity can be noted from the fact that clients even go as far as compromising their preferences over locations that are more convenient (Marin, 2015).
Conclusion
This research activity began by determining the level by which people would prefer Airbnb and how the services of Airbnb have influenced the hotel industry in the U.S among other European countries. In our research activity, the Airbnb concept mainly focused on the level of modernization of the accommodation department within the travelling and hospitality field in the United States. This activity also acknowledged the fact that Airbnb offers those who travel the chance to book an array of houses including flats, castles, and even villas. We also discussed that with the advent of such services as Airbnb, travelers have sporadically changed their travelling habits to more luxurious ones regarding booking of housing services. This activity then started by looking at the contributions of Airbnb in the sector of hospitality.
It was also discussed that the industry of hospitality had, for a long time; benefited from travelers through potential bookings. However, the traditional booking trend is slowly shifting to a new, better concept brought about by the Airbnb tool. What makes it even more advantageous over the traditional booking concept is the aspect of price. Many travelers would go for it because it is cheaper. Again, there are introduced ranges of housing including apartments, villas, and castles which offer absolute comfortability at lower prices than before (Kurtz, 2014). Due to such comfortability and low prices, the hotel industry in the U.S has been facing a lot of losses. Customers are lured by the fact that they can experience local cultures whenever they go for the services of Airbnb. Travelers have thus opted for independent firms linked to Airbnb for hotel rooms (Russell & Wall, 2015). The services offered by Airbnb are divided into two subsections. These are guests and hosts services. While the hosts are obligated with the provision of rooms for which Airbnb Company charges a certain amount, guests are associated with the selection and payment of these chambers.
Reference
Aznar, J. et al. 2017. The irruption of Airbnb and its effects on hotel profitability: An analysis of Barcelona’s hotel sector. Intangible Capital 13(1), pp. 147-159.
Coldwell, W. 2017. Airbnb’s legal troubles: what are the issues?. The Guardian. Accessed 30 Jun. 2017. Available at: https://www.theguardian.com/travel/2014/jul/08/airbnb-legal-troubles-what-are-the-issues
Coyle, D. and Yeung, T. 2015. Understanding AirBnB in Fourteen European cities. Retrieved 21 June, 2017, from https://www.tse-fr.eu/sites/default/files/TSE/documents/ChaireJJL/PolicyPapers/2016_30_12_pp_understanding_airbnb_in_14_european_cities_coyle_yeung_v.3.1.pdf
Guttentag, D. 2016. Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector. Current Issues in Tourism 18(12), pp.1192-1217.
Hospitality Ireland, 2016. The Air Apparent. Retrieved 21 June, 2017, from https://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?sid=fbd16c5a-21ad-4898-82e5-4a503b46edfb%40sessionmgr120&vid=0&hid=113
https://www.thecollegetourist.com/6-reasons-why-airbnb-is-the-best/
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Kurtz, M. 2014. Airbnb’s Inroads into the Hotel Industry. Retrieved 21 June, 2017, from https://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?sid=7a78fa2e-49ea-42d6-b774-2e1c3649936d%40sessionmgr104&vid=0&hid=113
Levendis, J. and Dicle, M. 2016. The Economic Impact of Airbnb on New Orleans. Retrieved 21 June, 2017, from https://www.airbnbaction.com/wp-content/uploads/2016/10/Final_rbtn_economic_impact_study-2016.pdf
Marin, M. 2015. HB on the Scene. Hotel Business 24(7), pp. 11-12.
Mathews, A. 6 reason Why Airbnb is The Best, Retrieved 21 June, 2017 from
Net, H. 2017. The Impact of AirBnb on Hotel and Hospitality Industry | By Ahmed Mahmoud – Hospitality Net. Hospitality Net. Accessed 30 Jun. 2017. Available at: https://www.hospitalitynet.org/opinion/4074708.html
Quattrone, G. et al. 2016. Who Benefits from the “Sharing” Economy of Airbnb? International World Wide Web Conference Committee.
Russell, B. and Wall, R. 2015. Five Key Takeaways. Retrieved 21 June, 2017, from https://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?sid=ceb8ed14-d03d-468a-bd0b-0a7e288bf3ae%40sessionmgr101&vid=0&hid=113
Ryerson University. 2017. Why tourists choose Airbnb over hotels. Accessed 30 Jun. 2017. Available at: https://www.ryerson.ca/news-events/news/2016/10/why-tourists-choose-airbnb-over-hotels/
Turner, R. (2016). Travel & Tourism Economic impact 2015 Caribbean. wttc.org. Retrieved 21 September 2016, from https://www.wttc.org/-/media/files/reports/economic%20impact%20research/regional%202015/caribbean2015.pdf
Zervas, G., Proserpio, D. and Byers, J.W., 2014. The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Journal of Marketing Research.
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