Class Year

2018

Document Type

Student Research Paper

Date of Creation

Spring 2018

Department

Management

Abstract

I examined the effect that Airbnb’s entrance into and disruption of the hospitality market in 2011 had on hotel room rates across the world by 2017. Hotel room rates were taken from published data tables rather than my own analysis because of an unavailability of raw hotel pricing data. Price comparisons between current Airbnb and hotel room rates were researched to see if one method of accommodation would be better than the other. Twenty-seven cities’ hotel rate averages and Airbnb entire-home prices were averaged and compared. There was a significant difference in hotel room rates between 2011 and 2017, during which prices rose, potentially as a factor of the willingness for consumers to spend more. No significant difference in 2017 Airbnb entire-home and 2017 hotel room prices was found. Mediation of Airbnb’s entry into the market was not tested it cannot be stated whether this itself had a significant effect.

Comments

Written as a senior capstone for Management Studies.

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