Airbnb: Exciting innovation or passing fad?

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.