Airbnb in India: comparison with hotels, and factors affecting purchase intentions

Abstract

Purpose The purpose of this paper is to understand Indian tourists’ perceptions of Airbnb compared to other hospitality options, and the factors driving their purchase intentions. Design/methodology/approach An integrated model for purchase intention was conceptualized based on the theory of planned behavior and social exchange theory. Constructs such as trust, authenticity, travel innovativeness, price sensitivity and effort expectancy were included based on a survey of the literature. Structural equation models were built using survey data. Respondent ranking of different criteria for Airbnb vs its competitors were aggregated using Borda count method. Findings Price is the most important criteria across hospitality choices, including Airbnb, except high-end hotels. Facilities, home-like feeling, trust and friendly service were important for Airbnb. Consumer expectations from Airbnb are similar to homestays, mid-range and budget hotels and different from resorts and high-range hotels. In the theory of planned behavior model, trust in Airbnb and perceived authenticity had large significant positive effects on purchase intention, mediated by attitude. Social norms and effort expectancy had direct positive effects on behavioral intentions. Price sensitivity had a direct small negative effect on purchase intention. Overall, fit of the model was within acceptable parameters. Originality/value Despite being an important emerging market, Airbnb in India has not been covered by studies of consumer behavior. This paper fills that research gap. Airbnb’s main competitors are home-stays and mid-range hotels. Building trust, creating authentic experiences and ensuring price competitiveness will drive adoption.

Factors Affecting the Intention to Use Airbnb in Egypt: A PLS-SEM Approach

“…According to Baldick and Jang (2020), attitude has a significant influence on intention to rent shared rooms through Airbnb. Furthermore, Chatterjee, Dandona, Mitra, and Giri (2019) revealed that trust in Airbnb and perceived authenticity had a significant beneficial influence on purchase intention, which was mediated by attitude. Lee (2020) confirmed that attitude affect positively the intention to use the sharing economy.…”

“…On the other hand, Mao and Lyu (2017) used the theory of planned behavior model to investigate the travelers' intention to reuse Airbnb and found that perceived behavioral control did not affect the intention. In India, Chatterjee et al (2019) investigated the Indians' perception of Airbnb compared to other hospitality accommodations and the factors that affect the intention to use it. They reached the result that perceived behavioral control is not a significant factor that can affect the intention to use it.…”

Indian Travellers’ Adoption of Airbnb Platform

“…The most dominant theory to examine Airbnb guests' interactions on the platform was Theory of planned behaviour with three examinations. Researchers used this theory to examine both travellers purchase (Chatterjee et al, 2019) and repurchase intention (Mao & Lyu, 2017) on the platform. While, Price emerged as the significant determinant of purchase intention; Attitude and subjective norms as significant determinants of repurchase intention (Chatterjee et al, 2019;Mao & Lyu, 2017).…”

“…Researchers used this theory to examine both travellers purchase (Chatterjee et al, 2019) and repurchase intention (Mao & Lyu, 2017) on the platform. While, Price emerged as the significant determinant of purchase intention; Attitude and subjective norms as significant determinants of repurchase intention (Chatterjee et al, 2019;Mao & Lyu, 2017). Four theories/models such as Attribution theory, Prospect theory, Social exchange theory, and Extended unified theory of acceptance and use of technology (UTAUT2) jointly occupied second position by serving as theoretical lens on two instances each.…”

“…Furthermore, three were nine theories/models such as: 1) Attachment Theory (Yang et al, 2019), 2) Innovation Diffusion Theory (IDT) (Wang & Jeong, 2018), 3) Information processing Theory (Bae et al, 2017), 4) Meanend chain theory (Aruan & Felicia, 2019), 5) Mehrabian-Russell model (So et al, 2020), 6) Push-pull-mooring (PPM) model (Yan et al, 2019), 7) Reactance Theory (Teubner & Graul, 2020), 8) Stimulus-organism-response theory (Mody et al, 2017), and 9) Technology acceptance model (TAM) (Wang & Jeong, 2018) that researchers employed on one instance each to examine travellers use of Airbnb platform. Finally, the extant literature review found majority of the existing studies focused on developed western countries such as the USA (Lee & Kim, 2018;Li et al, 2019;Mao et al, 2020), Canada (Guttentag et al, 2018;Liang et al, 2018), and Germany (Amaro et al, 2019;Möhlmann, 2015) with just one study focusing on India (Chatterjee et al, 2019).…”