Airbnb vs hotel? Customer selection behaviors in upward and downward COVID-19 trends

Abstract

Purpose To provide a dynamic view on accommodation choice behaviors during the pandemic, this study aims to examine the impact of recent trends on prospective travelers’ preferences for hotels and Airbnb.

Design/methodology/approach The paper adopts a mixed methods approach that incorporates three independent studies (experimental analysis, online search pattern analysis and an econometric event study) to understand customer decision-making behaviors.

Findings The findings indicate that travelers prefer Airbnb entire flats/apartments to hotels when the pandemic is trending upward. This result externally validates travelers’ preference toward Airbnb during periods of high risk. Interestingly, when the trends go downward, however, the same behavioral pattern was not identified.

Research limitations/implications This study provides important empirical insights into how the evolution of health crises influence customer decision-making for hotels and Airbnb. Future research needs to consider the role of socio-demographic factors in accommodation selection behaviors and examine how travelers react to cleanliness levels between Airbnb and hotels.

Originality/value As one of initial studies that empirically examine Airbnb customers’ decision-making behaviors in the context of the COVID-19 pandemic’s trends, this study provides a dynamic view on how the evolution of the pandemic influences accommodation choice behaviors.