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How Airbnb impacts the hotel industry of American and European countries and why people choose the service of Airbnb over others?

General Background of the Topic

The main topic is about the travel company called Airbnb, which is mainly associated with giving a lot of facilities to the overall travellers, and thus it is creating a massive impact on the American as well as the European hotel industry (Dominici & Guzzo, 2010). If a closer look is taken, then it can be understood that a very cheap rate along with good amenities is the secret behind so many people wanting this particular organisation to suit the travelling needs.  

The main points related to the proposal consists of a complete understanding of the background of the topic, the significance of the topic, and the area of research. After that, the methodology of the research is discussed in great detail that consists of the primary and secondary research techniques, ethical methods as well as the summary of main points in the tabular form (Tajeddini, 2010). The last part consists of the inference as well as the recommendations for future development.

The primary aim of the proposal is to find out the impact within the hotel industry of America as well as the European countries in regards to the Airbnb Company (Yoo & Lee, 2011). The company has already created severe impact by giving cheaper rates and good amenities. The aim is to find out the extent of this impact, and how the other businesses are getting affected by it.  

The entire problem statement of the topic revolves around the hotel industry facilities given by Airbnb that it offers multiple types of choice to the tourists, and provides several kinds of services to the travellers by online sources. The facilities that mainly attracts the tourists to choose such hotels are low costs, excellent amenities, and a local exposure along with a good location (Chand, 2010). Thus, the conventional hotels in the entire America and European market. Thus, the present research is trying to find out the secret of this business, and ensure that such changes can even be implanted in the other hotel industry in order to increase the overall performance of every hotel industry (Ö?üt & Onur Ta?, 2012). So, the present research takes the help of primary and secondary research to find out the same.

This topic is relevant for the research from many angles. Mainly, the research revolves around a company called Airbnb, which is an online promoter related to the hotel industry and gives the best of facilities to all the travellers (Line & Runyan, 2012). So, the other competitors are mainly conventional hotels who are also looking for some improvisations to build up a better future and a better exposure of their hotel. In order to do just that, research is required as to how this hotel is increasing so much popularity, and what are the strengths and weaknesses of the hotel (Pereira-Moliner & Claver-Cortés, 2012). So, as a whole, the consumer focus and the likes and dislikes of the consumers should also be understood in great detail.


The hotel industry is a very booming industry nowadays that makes the research more relevant in the market. Many conventional hotels are present in America and all across the Europe, and the hotel industry is suffering some losses because most of the travellers are choosing the Airbnb hotels because it allows the facility of online choice of amenities, and also allow the online transaction and a perfect digitalization (Shaw & Bailey, 2011). Along with that greater amenities are given, and the cost is comparatively lower. So, this research is quite important for understanding the extent of this hotel’s popularity, and how the popularity of other conventional hotels can be increased in order to keep every business up and to run.

The feasibility of the research lies mainly in the procedure where the primary, as well as the secondary research technique, is mainly used for performing the research work. The research consists of a certain questionnaire with options that would be given to the people who are participating in the research (Yang, 2010). Naturally, it would bring some ideas about the present topic, and the secondary research is already done in the literature review section. The overall research would be analysed, and an inference would be drawn pertaining to the research, which would speak about the conditions of further improvement of the scenario as well.

The points or arguments that would be discussed throughout the research are those conditions that are creating a demand for the Airbnb hotel chain in the travel industry. Moreover, it would also discuss the loopholes pertaining to the conventional hotels, and why such loopholes are into existence (Pechlaner & Volgger, 2012). It would also look forward to the fact whether the promotional activities and the strategies used by Airbnb hotel can be used in other conventional hotels or not. The digital benefits, as well as the digital promotions of the Airbnb hotel, is also a point that is often required to be discussed in this regard.

Main Points/Threads

Research Methods

Methodology Used

Advantages of the Airbnb hotel chain.

Both the exploratory and quantitative approach is used for understanding the basis of the advantages used in the hotel chain (Cantallops & Salvi, 2014). The exploratory approach is mainly used in the literature review section when the information is mainly collected from a number of websites. The quantitative research method is used while collecting data by means of a survey (Mok & Sparks, 2013).  

Both the primary and the secondary data collection method is used for this research work (Jang & Park, 2011). The primary research method consists of the data collected by means of a survey whereas the secondary research method consists of the data collected from the internet websites.

Loopholes of the conventional hotels.

The disadvantages of the conventional hotels are mainly the fact that it is quite expensive as compared to the Airbnb hotels, and it does not reach the customers completely (Tsai & Chen, 2011). These parts are exclusively asked the people during the survey.

The primary research method consists of a questionnaire that would indicate the behaviour of customers who are mainly travellers in relation to the Airbnb hotel (Verma & Stock, 2012). The secondary research mainly talks about the comparison of Airbnb hotel chain with the conventional hotels.

Promotional methods of Airbnb hotel chain.

The Airbnb hotel chain mainly consists of the promotional methods based on the internet and online marketing strategies (He & Li, 2011). The promotion also takes place through the social networking websites. The overall strategic advantage at the online level could not be achieved by the conventional hotel chain (Schubert & Kandampully, 2010). The research method mainly concentrates on collecting the kinds of promotional methods used by the Airbnb hotel chain, and analyzing whether such things can be used by other conventional hotel chains as well.

The research methods are mainly hypothetical in nature because the information related to the promotional methods are mainly procured from the customers, and how often do they observe such ads related to the Airbnb hotel chain on the internet (Nieves & Segarra-Ciprés, 2015). The answers to those questions are analyzed by the help of statistical methods to arrive at a given conclusion.

TABLE showing a list of primary research methods used with justification:

Primary Research Method Used

Justification in relation to the topic


This particular research method is mainly used for avoiding wrong information within the entire research. There is naturally the chance of having many biased opinions in the exploratory based secondary research as well as the primary research (Fraj & Matute, 2015). However, the biased information would be sorted out if some information can be procured by simple observation.

Postal Surveys

The postal surveys can be done by those customers who cannot be contacted online. Many elderly people are not that savvy with the computers and the internet, and postal surveys can be the only alternative (Segarra-Oña & Peiró-Signes, 2012).

Telephone Interviews

The telephonic survey can be considered as the best type of survey method that can be used with those people who cannot come directly to a particular place (Airbnb, 2016). The telephonic survey methods are normally hassle free, and it can also create a suitable atmosphere for both the interviewer as well as the interviewee.

Online Surveys

This kind of surveys is mainly designed for conducting the primary research to a larger group of people. This survey is especially conducted across international borders where a telephonic assignment is beyond reach. Naturally, the limit of surveys and contacts can be exceeded by online methods.

Face-to-Face Surveys

This is the best form of the survey where the contact methods with the prospective customers because their opinions can be analysed on the basis of their body language as well as the facial expression (Fraj & Matute, 2015).

Focus Groups

Focus groups consist of doing a survey by bringing the prospective customers close to each other and creating an atmosphere where a free flow of idea can ensue. Such consumer groups mainly exist on social networking websites, and some sort of groups can be opened by the researcher itself for gathering opinions about the same topic (He & Li, 2011).

Test Marketing

This consists of selling a particular product within a small group at very low prices in order to note the reaction of the customers (Jang & Park, 2011). Such other products like Airbnb can also be promoted online in order to understand the potential of the customers.

Research ethics is a big factor in all types of researches including primary and secondary research. Here, both the research methods are used, and so, the consideration of ethical parameters must be given importance. The main aim of the research ethics is to follow the minimum amount of morals that go as far as the human ethics is concerned (Dominici & Guzzo, 2010). The first ethics of research is that no children can be taken as a participant in the research. The opinions of the children who are below 18 years of age cannot be considered as valid. Moreover, involving children in the research is also considered as a gross unethical parameter, which can get the research completely cancelled.

Purpose Statement of the Proposal

Another ethical parameter that should be involved with the research is that any participant should feel free to skip any question that one might feel embarrassing or not willing to answer. Moreover, embarrassing questions like the family income or the relationship status of a participant should not be asked during any interview (Jang & Park, 2011). Any researcher has the liberty to quit the research at any point one feels like. Moreover, the research work was completed in relation to the permission of the participant during the entire research. The prior appointment is taken over the telephone, and if the person cannot come to the venue, it is better to arrange the research online.

Another factor associated with the research ethics is that no research participant can be kept in the dark. Every participant has the right to know about why the research is conducted, and to what extent it affects a person’s daily life (Cantallops & Salvi, 2014). Moreover, the overall aim and motif of the research also need to be explained to the participant, and it should be mentioned that the research is performed for the improvement of the business. Still, if any researcher is not willing to participate, it is not ethical to force the researcher to participate in any way.

Research limitations is that section of the research that cannot be controlled by the researcher. The information that would be collected from the internet, and put in the literature review section is filled with various sorts of bias related to the author’s own opinions. These sort of biases cannot be completely taken away from the entire research (Fraj & Matute, 2015). There would be several wrong information including the deliberate lies that would be told by the participants during the course of research. Such biased information cannot be controlled in any way other than analysing the same with observations and facts.

The outcomes of the research are the improvement of hotel industry in the overall US and the European countries. It can be already expected that the special privileges given by the Airbnb hotel chain has taken the travelling industry by storm, and most of the travellers are willing to book a hotel under Airbnb (Airbnb, 2016). This research mainly aims at finding out the process of Airbnb based operations that would be useful for the other conventional hotels as well. It would bring out the loopholes of the conventional hotels, and it would also bring out the prime factors responsible for success in the hotel industry.

Problem Statement of the Topic

The individual reflection about the research consists of understanding the basic concept of the hotel industry, and the main reason for Airbnb hotel chain to be successful in the market. After the research, the personal feeling was that of satisfaction, and it is completely in relation to the overall hotel industry (Nieves & Segarra-Ciprés, 2015). Hotel industry is a good industry on an overall basis, and a very profitable industry as well. However, the profit related to the hotel industry is completely at sixes and sevens in the American and European market mainly due to the advent of this newbie hotel chain called Airbnb.

It was a great feeling after considering that the entire research work was made successful after considering the same from a business point of view. The hotel industry was being made clear after the research, and the research work was completely related to the very notion of the improvement of the conventional hotel industry after comparing all of them with a newbie business cynosure called the Airbnb (Airbnb, 2016). So, the entire research is concentrated on a particular company and its personal strengths and loopholes that become amazing to any researcher because it’s a different forte.

Conclusion and Recommendations:

The entire inference of the overall project is concentrated on the Airbnb, which is a new hotel chain and is dominating the American hotel industry as well as the European hotel industry on an overall basis (Airbnb, 2016). Doing its promotional activities mainly online, it’s completely quite justified in doing research on its overall impact on the business as well as the kind of advantages the other conventional hotels are having.

The final thoughts about the research are that the whole research is based on a particular company and the impact that company creates on a vast industry. Though it might sound like an interesting research, yet is completely revolving around the hotel industry (Yoo & Lee, 2011). The entire research follows the contemporary research methods that consisted of both primary as well as the secondary research.

Further research might be conducted on an overall improvement in the hotel industry, and promoting the travelling packages online. Online promotion is a sector that is quite a lot in vogue these days, and it can completely create a huge market for any hotel industry (Verma & Stock, 2012). The other conventional hotels should also observe newbie methods of selling the tour packages along with the help of a certain amount of innovation in the entire field.  

Significance and Justification of this Research Project


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Dominici, G. & Guzzo, R., 2010. Customer satisfaction in the hotel industry: a case study from Sicily. 3 ed. London: Routeledge.

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Ö?üt, H. & Onur Ta?, B., 2012. The influence of internet customer reviews on the online sales and prices in hotel industry. The Service Industries Journal, 32(2), pp. 197-214.

Pechlaner, H. & Volgger, M., 2012. How to promote cooperation in the hospitality industry: Generating practitioner-relevant knowledge using the GABEK qualitative research strategy. International Journal of Contemporary Hospitality Management, 24(6), pp. 925-945.

Pereira-Moliner, J. & Claver-Cortés, E., 2012. Quality management, environmental management and firm performance: direct and mediating effects in the hotel industry. Journal of Cleaner Production, 37(7), pp. 82-92.

Schubert, F. & Kandampully, J., 2010. Exploring consumer perceptions of green restaurants in the US. Tourism and Hospitality Research, 10(4), pp. 286-300.

Segarra-Oña, M. & Peiró-Signes, Á., 2012. Does environmental certification help the economic performance of hotels? Evidence from the Spanish hotel industry. Cornell Hospitality Quarterly, 53(3), pp. 242-256.

Shaw, G. & Bailey, A., 2011. Aspects of service-dominant logic and its implications for tourism management: Examples from the hotel industry. Tourism Management, 32(2), pp. 207-214.

Tajeddini, K., 2010. Effect of customer orientation and entrepreneurial orientation on innovativeness: Evidence from the hotel industry in Switzerland. Tourism Management, 31(2), pp. 221-231.

Tsai, C. & Chen, C., 2011. Development of a mechanism for typhoon-and flood-risk assessment and disaster management in the hotel industry–A case study of the Hualien area. Scandinavian Journal of Hospitality and Tourism, 11(3), pp. 324-341.

Verma, R. & Stock, D., 2012. Customer preferences for online, social media, and mobile innovations in the hospitality industry. Cornell Hospitality Quarterly, 53(3), pp. 183-186.

Yang, J., 2010. Antecedents and consequences of job satisfaction in the hotel industry. International Journal of Hospitality Management, 29(4), pp. 609-619.

Yoo, M. & Lee, S., 2011. Hospitality marketing research from 2000 to 2009: topics, methods, and trends. International Journal of Contemporary Hospitality Management, 23(4), pp. 517-532.

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