Budget and midrange hotel managers’ perceptions of and responses to Airbnb

Abstract

Purpose The purpose of this paper is to examine the degree to which budget and mid-range hoteliers perceive Airbnb as a threat, and the extent to which they are actively responding to the peer-to-peer accommodation business model. Design/methodology/approach The study draws on qualitative data collected through 19 semi-structured interviews with budget and midrange hotel managers in Istanbul, Turkey, covering how they view Airbnb and have responded to Airbnb’s rise. Findings The results suggest that the managers believed they were losing some business to Airbnb, yet they generally neither perceive Airbnb as a serious threat nor were they generally taking concrete strategic measures to respond to Airbnb. Regulatory lobbying against Airbnb and exploiting Airbnb as a new distribution platform were the most common responses, and cutting rate also was commonly seen as a potential competitive strategy. Originality/value The study responds to calls by several scholars for more research addressing the strategies adopted by traditional lodging facilities to protect their market share from Airbnb. This study does so with a specific focus on the budget and midrange hotel segments, which some studies suggest may be particularly vulnerable to Airbnb competition. Also, the limited research addressing Airbnb’s perceived impacts on traditional lodging has been conducted in mature economies, so the topic remains largely neglected in maturing economies like Turkey.