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How Airbnb threatens to disrupt traditional hotel pricing strategies | PhocusWire

Since the introduction of sharing-economy services such as Airbnb, hotels have struggled with how to compete against the alternative accommodations market.

Among hotels’ concerns is how Airbnb impacts their pricing and distribution strategies, which, according to new research from the Tepper School of Business at Carnegie Mellon University, might be more dramatic than hoteliers may think.

The study, Competitive Dynamics in the Sharing Economy: An Analysis in the Context of Airbnb and Hotels, pitted flexible-capacity Airbnb against the fixed-capacity lodging industry to uncover how the sharing economy has changed the way the hospitality industry accommodates demand fluctuations and how traditional hotels should respond.

The study took into account market conditions, seasonal patterns, hotel pricing and quality, consumer makeup and Airbnb supply, as well as Airbnb’s strategy toward business travelers, government regulations on Airbnb and changes in hosting costs, to arrive at four key findings.

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How Airbnb threatens to disrupt traditional hotel pricing strategies | PhocusWire.

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