Download The future of Airbnb in China: Industry perspectives from ... and more Summaries Tourism in PDF only on Docsity!
The future of Airbnb in China: Industry perspectives from hospitality leaders
This study aims to investigate the development of Airbnb in China from the perspective of hospitality leaders by identifying the positive and negative effects of Airbnb development in the country. A qualitative approach was adopted to explore the current development of the accommodation sharing service in China. Focus group discussions were conducted with the managers and top executives of hotels in China. Most of the participants affirmed that the experience of local culture and authenticity are the advantages of staying in this type of informal accommodation. From the viewpoint of hoteliers, traditional accommodation types must rethink their strategies by providing desired authentic experiences. By contrast, Airbnb may not seamlessly fit into Chinese culture. The result urges the government to regulate the informal accommodation platforms. The study provides views on Airbnb from the traditional accommodation sector in Mainland China, which can contribute to the future regulation of informal accommodation services.
Keywords : Airbnb, sharing economy, hotelier, authentic experience, localization, the Chinese market Paper type: Research paper
Introduction
The tourism industry of China is developing with the continual and rapid growth of the country’s economy (Guide, 2016). According to the China Tourism Industry Statistical Bulletin, inbound and outbound tourists in China in 2016 reached 1.38 and 1.22 billion, indicating growth by 3.5% and 4.3%, respectively, from the figures recorded a year earlier. Meanwhile, China has become one of the most popular inbound and outbound tourist destinations (Aliyeva, 2015) and the third most visited country worldwide (Pariona, 2017). The World Tourism Organization (WTO) predicted that China would become the fourth largest source of outbound tourists and the most popular travel destination by 2020 (Guide, 2017). With the rapid growth in both inbound and outbound tourism in China, Chinese tourists are now looking for unique travel experiences like local culture and cuisine, especially for those independent tourists (Hinsdale, 2017).
Since 1979, the open-door policy has brought many development and business opportunities to the hotel industry. Hotel development in China is heavily reliant on government support (Chan and Ho, 2006). Yu and Gu (2010) stated that one of the threats in the Chinese hotel industry is political disruptions in the region. Consequently, at the end of 2012, the Chinese government announced ‘An eight-point code to cut bureaucracy and maintain close ties with the people’, which aimed to reduce dining and meeting expenditures in government consumption. This announcement shifted and reformed all dining expenditures in all government levels, which had a significant impact on hotel restaurant revenue and business. Meanwhile, room sales and distribution channels started to shift to the online travel agent (OTA), which also lead more challenging to hotel operations.
According to a China Hotel Association report (2018), there were only 203 hotels in 1980, whereas the current total number of hotels at the end of 2017 reached 450,000, demonstrating the
power of the hotel industry development in China. As a result, hoteliers have to face various challenges in managing this competitive market (Tavitiyaman, Zhang, Law and Lin, 2016).
Over the past few years, with the advancement of information technologies, the consumption behaviours and patterns of consumers have gradually changed due to the use of social travel sites and services that provide user-generated travel reviews for travellers planning their own trips (Fotis, Buhalis, and Rossides, 2012). Consequently, the travel mode of travellers has also been redefined, such as their accommodation choices and the methods of discovering new destinations. Accommodation plays an important role in the tourism industry. Social websites, such as Airbnb, have become a popular platform to connect users who want to find a place to stay and hosts who have spare space (Zervas, Proserpio, and Byers, 2016). The Airbnb platform also satisfies the needs of those people who want to experience living like a local in a new destination. Airbnb is a type of sharing economy, and the rise of the sharing economy is also the reason behind its popularity.
Airbnb has nearly 5 million listings in more than 81,000 cities spread over 191 countries (Room, 2018). Mudallal (2015) affirmed that Airbnb offers more rooms than many of the largest hotel groups in the world—Hilton, InterContinental and Marriott. Moreover, the number of homes listed on the Airbnb platform of China reached 20,000 in 2017, and there are around 8.6 million Chinese tourists who choose to stay with Airbnb when traveling around the world (Marinova, 2017). Airbnb also announced that China is targeted to be the largest origin market for Airbnb by 2020 and that it will invest $2 million to support its innovative tourism projects in China through to 2020 (Choudhury, 2017). However, Airbnb is still facing numerous challenges despite its popularity in many countries worldwide. Firstly, Airbnb needs to deal with local regulatory authorities when entering the Chinese market. Secondly, numerous local competitors emerged in China with the proliferation of Airbnb worldwide. For instance, Tujia and Xiaozhu are the direct, local competitors of Airbnb in China. The last challenge is to assimilate into the distinct Chinese market (Yimin, 2015). The booming market of Airbnb in China has not received sufficient attention despite the increasing number of Chinese outbound tourists booking their accommodation service through Airbnb.
This study, therefore, aims to examine the current development of Airbnb in the Chinese market from the perspective of hotel managers. How do hotel managers view the development of Airbnb in China? What are the positive and negative effects on the overall development of the tourism industry? According to the positive effects, what are the strengths and opportunities of Airbnb in China? By contrast, on the basis of the negative effects, what are the weaknesses and threats in the Chinese market? Finally, this study will provide recommendations for policymakers to consider for the future development and regulations of Airbnb.
Literature Review
Development of the sharing economy in Asia
Sharing economy is widely adopted in the tourism and hospitality industry. Sharing economy provides users a peer-to-peer platform upon which to collaboratively make use of under-utilized inventories via fee-based sharing (Zervas, Proserpio, & Byers, 2016). Users can also gain valuable local experiences through the sharing economy (Nica & Potcovaru, 2015). The
Gyimóthy, 2015). The sharing economy addresses market demand by offering a large amount of information to users (Nica and Potcovaru, 2015), especially in the demand for short-term rentals in tourist destinations (Quattrone, Proserpio, Quercia, Capra, and Musolesi, 2016). Numerous platforms provide travellers the direct opportunity to connect with local operators at reasonable costs, which then creates an innovative and expendable market for the entire tourism industry (OECD, 2016). The flexibility of supply creates opportunities for Airbnb hosts (Guttentag, 2013; Sablik, 2014). Oskam and Boswijk (2016, p. 26) verified that the number of beds offered by Airbnb exceeds those of the major hotel chains worldwide and that Airbnb has become ‘a competitor and a disruptor for the traditional hospitality industry’. The development of the Airbnb platform is considered a potential threat to the current hotel industry (Nguyen, 2014). Several scholars affirm that Airbnb can directly influence budget hotels (Lehr, 2015; Tussyadiah & Pesonen, 2016; Zervas et al., 2016), especially when catering to non-business travellers. Guttentag (2015, p. 1205) stated that Airbnb might only attract a niche market that may not effect traditional hotels. The top executives of five-star hotels also stated that the target customers of Airbnb are those adventurous leisure travellers who do not seek traditional hotel services and facilities, such as room services and fitness centres (Nguyen, 2014). According to Haywood et al. (2017), when the hotel market is almost full, this is also marks the highest occupancy season for Airbnb operations.
Numerous studies have illustrated the effect of Airbnb’s development on the hotel industry, especially the lower-end hotels (Oskam and Boswijk, 2016; Fang et al., 2016; Zervas et al., 2016 ). According to the STR report on Airbnb and hotel performance, the share of Airbnb supply in 13 cities was less than 3%–4% (Haywood et al., 2017), only a few of these studies discussed the Chinese market as the Airbnb platform in China remains in its infancy. Thus, the positive and negative effects of this informal accommodation service on the hotel industry and how hotel managers view the development of Airbnb in China are relatively less investigated. Therefore, this study purposes the following research questions to lead the whole study: How do hoteliers view the development of Airbnb? What are positive and negative impacts to the tourism industry?
Methodology
Comparing the scale of the informal accommodation service to traditional hotel industry in China, Airbnb is still a potential competitor. Therefore, this study aims to understand the effects of Airbnb on the hotel industry in China. The qualitative method was utilised to obtain a more in- depth understanding from the hoteliers, thus allowing us to explore the current development of Airbnb in China. Focus group discussions were conducted with hotel managers in China to understand the influence of Airbnb from their perspective. A focus group interview can capture interactions among interviewees and conjecture their respective feelings and reactions about the effect of Airbnb on the Chinese hotel industry (Brotherton, 2015).
A total of six focus group discussions were conducted in Hangzhou, China. Each focus group consisted of 7–8 participants (Kitzinger & Barbour, 1999; Morgan & Krueger, 1998). All participants were Mainland Chinese and were experienced managers and top executives in the hospitality and tourism industry.
A total of 45 hoteliers participated in the interviews, 26 of which were female and 19 were male (Appendix 1). Of these, 24 participants were working in a hotel, 9 were working in tourism-
related companies or institutes and the rest were working in service industries.. According to the job title, one of the focus group participants was a hotel group chairman; four were general hotel managers, one was a representative of hotel owners; four and five were directors and departmental managers of different departments from different hotels, respectively; and two were managers of different tourism institutions. Group 1 was labelled as F1 and the participants were coded by their seating number. For instance, Participant 2 of Group 2 was F2:2.
Six well trained moderators were invited to manage and conduct the interviews.. At the beginning of the interview, the moderator briefed the interviewees on the basic rules and then presented the semi-structured interview questions. Initially, the participants were asked to share their views of Airbnb development. The groups were then asked to discuss their view on the development of Airbnb in China and its effect on the hotel industry of the country.
Each interview was conducted in Mandarin given the linguistic environment of China. The interviews were conducted anonymously and the interviewees were encouraged to discuss freely and confidently. The discussion of each focus group lasted approximately 40 minutes to an hour and was recorded by using a digital recorder. All the conversations were professionally transcribed.
After the acquisition of the transcripts, a qualitative research software called QSR NVivo 11 was used to code the key factors from the transcribed data and to classify the factors into different categories according to the research questions. Thematic analysis was conducted on textual data to identify the main themes under each attribute. This analysis focused on examining themes within data and emphasized organization and rich description of the data (Daly, Kellehear and Gliksman, 1997). The data were constructed to give both the positive and negative factors of Airbnb and the frequency of occurrence was then counted. Researchers worked independently on coding and then cross-checked and discussed the differences to produce consistent findings.
Findings and Discussion
The presentation of the findings is divided into three parts identified by the participants during the focus group discussions, including positive, negative and other factors (Table 2), in order to provide a full understanding of Airbnb development and its effects on the tourism industry from the perspective of hoteliers in China. A total of 603 text units were analysed, including positive factors (209 text units), negative factors (240 text units) and other factors (240 text units).
**Insert Table 2. Summary of all factors and literature **Insert Figure 1. Summary of findings
Positive factors
In terms of positive factors (Figure 1), the function of the Airbnb platform (29%), special experience (20%), attractive price (13%), becoming a local ambassador (10%) and enriching customer experience and relationship (9%) were the five highest weighing factors identified.
1.1 Positive factor of the functionality of the Airbnb platform
2016; Lin 2018; Lin et al., 2019). Young travellers, in particular, found that authenticity and cultural experience play a key role in their overall travel experience (Sigala, 2017). Several participants realised that hotels offer standardised services and expected quality. By contrast, each Airbnb accommodation offers a unique experience that cannot be replicated by hotel services. The finding that travellers value experience more than price is interesting. It also suggested that, hotels, especially chain hotels, could consider integrating local social and cultural elements into the tangible products and intangible services without abandoning the service consistency and standardization across different properties.
1.3 Positive Factor of Attractive Price
Attractive price received the third highest weight among those evaluated. Most of the participants believe that price is a key factor that attracts Airbnb users to consider this alternative accommodation service. As one of the participants shared, ‘ The positioning of Airbnb with an affordable budget can certainly meet Chinese tourists’ needs. After comparing prices, I would prefer to stay in Airbnb rather than a hotel for my one-week business trip ’ (FG:6). This finding supports those of existing studies (Guttentag, 2013; Heo, 2016; Lehr, 2015; Zervas et al., 2016; Tussyadiah, 2016; Weber, 2014; Nica & Potcovaru, 2015; Oskam & Boswijk, 2016; OECD, 2016; Lin 2018; Lin et al., 2019) on how the cost-saving feature of Airbnb attracts users to select this service rather than traditional hotels. Varma et al. (2016) noted that Airbnb is preferred by travellers staying for a longer period, though not necessarily for business travels. This study supports the notion that a longer business trip can still attract business travellers to consider having a homely feeling style of accommodation.
Compared with traditional hotels, the investment for sharing a spare room/space on the Airbnb platform is considerably low and flexible, and can directly influence the traditional hotel market (FG6:3). This finding supports those of Ikkala and Lampinen (2015) and Ng et al. (2016), who noted that several hosts deliberately kept the price under the market price to attract several users to stay with them. Travellers nowadays are searching for a place to stay via the Internet where they can select a good location, value for money and, importantly, online reviews to finalise their decision. This finding is consistent with the effect of economic and social factors on the destination selection and travel frequency (Oskam & Bpswokl, 2016). This phenomenon on the rising popularity of Airbnb is already forming, and it is predicted to have an effect on different stakeholders (FG5:2). Airbnb users include young travellers, budget travellers and families, which focus on a new market that is different from other hotel segments.
1.4 Positive Factor of Becoming a Local Ambassador
Becoming a local ambassador received the fourth highest weighting among those evaluated. Most of the participants asserted that Airbnb hostscould serve as ‘Gold Key Concierge’ local ambassadors to travellers by sharing local advice and providing authentic cultural experiences. By highlighting local specialties, local ambassadors can also attract numerous budget travellers to visit the destination. These findings may also encourage local tourism boards to consider host training by offering a local ambassador training programme to provide better services and a unique experience.
1.5 Positive Factor of Enriching Travel Experience and Relationship
Enriching customer experience and relationship was the fifth highest weighting factor identified by the participants. The majority of the participants viewed the development of Airbnb as a cultural communication drive to promote global tourism During the focus group discussion, participants in Group 4 mentioned that all of them used the Airbnb service not for the price but the unique experiencewhich cannot be fulfilled by traditional hotel operations and services (FG4:3). This outcome supports the theory that staying somewhere with a homely setting and receiving local experiences are considered attractive factors by travellers (Tussyadiah & Pesonen, 2016; Tussyadiah, 2016; Varma et al., 2016; Lin 2018).
Aside from the top five positive factors, this study also identified three other positive factors, namely, the benefit of being an Airbnb host, new product development and culture communication. Many participants believe this development is beneficial to the host. By sharing a space/room, hosts can generate extra income and meet people from all over the world. Hosting can also alleviate the employment rate in the destination. This finding confirms that the motivation of being a host is to receive financial benefits (Cheng, 2016; Ikkala & Lampinen, 2014; Lee, 2016). Rapid innovation has motivated traditional hotel operations to think forward and look for ways to remain competitive with the sharing-economy platforms, such as Airbnb and Uber. Several positive factors are also closely related to hosts, including low entry level and cost, utilisation of extra space, obtaining extra income and alleviating the employment rate. The alleviation of the employment rate supports the results obtained by Cheng (2016) and Fang, Ye, and Law (2016) that Airbnb can contribute to solving unemployment issues.
Negative Factors
In terms of negative factors, the lack of security and hygiene standard (31%), effects on the daily lives of local residents (16%), the lack of standard operation and guideline (12%), culture conflicts (12%) and lack of market positioning (8%) were identified as the top five weighting factors. The detailed discussions of each factor are provided as follows.
2.1 Negative Factor of Security Standard and Hygiene Standard
Most of the participants considered security and hygiene standards as the priority in hotel operations, whereas Airbnb does not have any clear guideline for hosts to protect themselves and the user. This concern creates numerous barriers to potential users. Stories shared on social media tend to amplify the negative images of Airbnb, which may change the perceptions of potential consumers. The security of the local community was also a concern from a participant (FG1:2) who asserted that this aspect could be a major issue for neighbourhoods with senior citizens and young children. The participant could not trust the security issue in their local community (FG1:2). This study identified the three major areas of security standards and concerns from the perspective of the host, users and the local community. The security issue is consistent with the conclusion of Guttentag (2015), who stated that the security issue is a weakness of the sharing-economy platform. Although the Airbnb platform offers an insurance of one million USD to all hosts, security remains a key weakness of this platform.
2.2 Negative Factor of Potential Effects on Local Residents’ Daily Lives
The effects on the daily lives of residents received the second highest weighting among the negative factors. Airbnb users may not fit into local practices due to cultural differences; thus, conflicts between travellers and residents may emerge. The high frequency and number of
is considered as illegally operating in several cities, thus creating numerous issues for different stakeholders. These findings support those presented by Jonas (2015), Guttentag (2013), Dredge and Gyimothy (2015), Abelmazov and Engstrom (2016) and the OECD (2016). The legalisation of Airbnb (informal accommodation platforms) can, therefore, reduce the risks to the hosts, users and local residents.
Aside from the top five negative factors explained above, this study also identified three other negative factors: the immature trust system (which refers to the differences among Chinese users), the fact that the platform is not attractive to business travellers, and the lack of basic facilities found in hotels (e.g. gyms and restaurants). Unlike other users, those from Mainland China tend to hold reservations toward online trust systems. The immature trust system is a critical issue for Chinese users who feel that this platform is not clear and organised. Finally, the lack of basic hotel facilities is also a concern raised by the participants.
Other Factors
Aside from the positive and negative factors, the present study also identified five factors ( text units) that do not belong to either the positive and negative factors of Airbnb. Instead, these factors are closely related to the current issue of sharing-economy development from a global perspective: regulation and trust system (29%), effect on the hotel industry (26%), monitoring and training (32%), resource integration (14%), changing market trends (5%) and sustainable operation (4%).
3.1 Regulation and trust system
Regulation and trust system (29%) received the highest weight among the ‘other factors’ identified. China does not have any clear regulation for informal accommodation platforms, and this issue emerged as a major concern for all the participants. The participants suggested that a holistic regulation and a trust system should be established at the governmental level to protect all stakeholders. This suggestion is consistent with that of Sablik (2014) and Jonas (2015), who argued that no law exists to protect users. Our finding is also in line with Guttentag (2013), Pizam (2014), Jonas (2015) and the OECD (2016) in the view of lacking a security mechanism for users and hosts.
The participants, however, believe that the trust system in China is immature compared with that in other countries. Several participants suggested the government can set up a credit-check platform in which all sharing-economy stakeholders can register and be evaluated to ensure quality and adherence to safety standards (FG2:3). The participants, however, hold optimistic views that the government can regulate and set up a standard for all stakeholders to follow.
3.2 Effect on hotel market and price
The effect on the hotel industry received the second highest weight from all participants in the hospitality and tourism industry. The hotel setting is not comparable with the individual Airbnb accommodation service. The participants, however, verified several key effects on the hotel industry. The platform establishes an unfair competition for all legally operating accommodation operators. These operations should mainly follow all regulations, pay taxes and pass all required inspections. By contrast, Airbnb hosts and the platform itself do not have regulations to follow.
Accordingly, this condition also affects the hotel market and price, especially among lower-end hotels. This outcome supports those of existing studies (Oskam and Boswijk, 2016; Zervas et al., 2016; Sablik, 2014; Richard & Cleveland, 2016) who reported that Airbnb affects hotel revenue and pricing strategy.
3.3 Monitoring and training
Monitoring and training (32%) received the third highest weight among the factors, indicating the urgency of building a system for the platform to enhance the security level and hospitality service. From the findings, this monitoring and training system can form a type of agreement among all stakeholders. This system, which consisted of establishing guidelines on how to be a host and handle emergency situations, was proposed in each city in China. This informal accommodation sector can be sustained with government support and the introduction of more defined regulations.
3.4 Resource integration
Resource integration (18%) received the fourth highest weight. In relation to this, the participants urged that all stakeholders should work together to create a win–win business scenario. The ultimate goal is to have sustainable tourism industry. They believe that the transformation of traditional hotels by integrating all resources is a revolutionary undertaking. From the hotel operation viewpoint, they can integrate local short-term housing services by providing standardised housekeeping services and developing several high-end products (FG4:2). Another strategy is to incorporate available rooms into a hotel system to address overbooking issues (FG7:3). All resources should also incorporate laundry services and sharing of different resources.
3.5 Changing the market trend
Changing the market trend (5%) received the fifth highest weight. The market trend is moving towards greater presence in social media platforms. Within several years, Airbnb managed to become a competitive platform in the accommodation market. Through its platform, Airbnb has created a third social media platform for hosts and users to find a place to stay worldwide (FG1:4). This result affirms the urgency that hotels should face booming online platforms, such as Airbnb. This finding supports OECD (2016), which argued that the sharing economy shifts consumer behaviour in traditional services. Accordingly, hotels must reposition themselves to attract customers from different markets.
Conclusions
With the growth of sharing economy, Airbnb raises a debatable question to all stakeholders in the tourism industry. As the development of the sharing economy in China is booming in various market sectors, the government holds a promising view on this trend in several ways. Although a growing number of Chinese tourists use Airbnb for their overseas trips, Airbnb remains underdeveloped and requires additional efforts before it can thoroughly penetrate the Chinese market.
global importance of the Chinese market, future studies should investigate the perspective of Chinese tourists and hosts regarding the market development of Airbnb, as well as new functions of local experiences. Aside from the qualitative approach, the quantitative approach can also be further developed from the views of different stakeholders, such as hosts and users.
References
Airbnb. (2013b). About us. Retrieved from https://www.airbnb.com/home/ about Airbnb. (2016). About us. Retrieved from https://www.airbnb.com/about/about-us ALIYEVA, Z. (2015). TOURISM DEVELOPMENT IN CHINA. Anonymous (Producer). (2017a). Can sharing economy succeed in Asia? - Consumer acceptance of Uber, Airbnb in Asia. Retrieved from file:///C:/Users/SHTM/Downloads/Can-sharing-economy- succeed-in-Asia_Rakuten-AIP_042017%20(1).pdf Anonymous. (2017b). China Tourism Industry Statitical Bulletin 2016. from National Tourism Administration Data Center http://www.cnta.com/zwgk/lysj/201711/t20171108_846343.shtml Bloomberg, A. M. (Producer). (2017). China Is Likely to Become a Test Bed for Sharing Economy Innovation. Retrieved from https://skift.com/2017/05/20/china-is-likely-to-become-a-test-bed-for- sharing-economy-innovation/ Brotherton, B. (2015). Researching hospitality and tourism : Sage. Chan, W. W., & Ho, K. (2006). Hotels’ environmental management systems : Creative financing strategy. International Journal of Contemporary Hospitality Management , 18(4), 302–316. Chen, S.-C. J. (2016). China's Home-Sharing Site Surpasses Airbnb. Retrieved from http://www.forbes.com/sites/shuchingjeanchen/2016/05/09/chinas-home-sharing-site-surpasses- airbnb/#2dc4249f7ff Cheng, M. (2016). Current sharing economy media discourse in tourism. Annals of Tourism Research, 60 , 111-114. Chesky, B. (2015). Introducing Airbnb's Newest Partners in China. Retrieved from http://blog.airbnb.com/introducing-airbnbs-newest-partners-in-china/ Choudhury, S. R. (2017). Airbnb feels 'unencumbered' and is growing strongly in China, its co-founder says. Retrieved from https://www.cnbc.com/2017/11/09/airbnb-co-founder-on-china-growth- prospects.html Clifford, C. (2016). The Sharing Economy Is Absolutely Blowing Up in China. Retrieved from https://www.entrepreneur.com/article/ Custer, C. (Producer). (2016). Why Airbnb is struggling in China. Retrieved from https://www.techinasia.com/airbnb-struggling-china Dan Peltier, S. (Producer). (2016). 5 Charts Showing Rise of Sharing Economy With Asia-Pacific Travelers. Retrieved from https://skift.com/2016/05/13/5-charts-showing-rise-of-sharing- economy-with-asia-pacific-travelers/ Daly, J., Kellehear, A., Gliksman, M., & Daly, K. G. (1997). The Public Health Researcher: A Methodological Guide (pp. 89-106). Melbourne: Oxford University Press.
Chan, W. W., & Ho, K. (2006). Hotels' environmental management systems (ISO 14001): creative financing strategy. International Journal of Contemporary Hospitality Management, 18(4), 302-
- doi:doi:10.1108/ Dredge, D., & Gyimóthy, S. (2015). The collaborative economy and tourism: Critical perspectives, questionable claims and silenced voices. Tourism Recreation Research, 40 (3), 286-302. Edelman, B. G., & Luca, M. (2014). Digital discrimination: The case of airbnb. com. Harvard Business School NOM Unit Working Paper (14-054). Fang, B., Ye, Q., & Law, R. (2016). Effect of sharing economy on tourism industry employment. Annals of Tourism Research, 57 , 264-267. Fotis, J., Buhalis, D., & Rossides, N. (2012). Social Media Impact on Holiday Travel Planning: The Case of the Russian. Transdisciplinary Marketing Concepts and Emergent Methods for Virtual Environments, 1 , 1-19. Guide, T. C. (2016). China Tourism. Retrieved from https://www.travelchinaguide.com/tourism/ Guide, T. C. (2017). China Tourism. Retrieved from https://www.travelchinaguide.com/tourism/ Guttentag, D. (2013). Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector. Current Issues in Tourism (ahead-of-print), 1-26. Guttentag, D. (2015). Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector. Current issues in Tourism, 18 (12), 1192-1217. Haywood, J., Mayock, P., Freitag, J., Owoo, K. A., & Florilla, B. (2017). Airbnb & Hotel Performance, an analysis of proprietary data in 13 global markets. Retrieved from http://www.str.com/Media/Default/Research/STR_AirbnbHotelPerformance.pdf Hinsdale, M. (2017). What Firms Get Wrong When They Market to Chinese Tourists. Retrieved from https://jingtravel.com/what-firms-get-wrong-about-catering-to-chinese-tourists/ Horwitz, J. (2015). Airbnb's China strategy is to get more people to leave China. Retrieved from http://qz.com/483743/airbnbs-china-strategy-is-to-get-more-people-to-leave-china/ Ikkala, T., & Lampinen, A. (2014). Defining the price of hospitality: networked hospitality exchange via Airbnb. Paper presented at the Proceedings of the companion publication of the 17th ACM conference on Computer supported cooperative work & social computing. Ikkala, T., & Lampinen, A. (2015). Monetizing Network Hospitality: Hospitality and Sociability in the Context of Airbnb. Paper presented at the Proceedings of the 18th ACM Conference on Computer Supported Cooperative Work & Social Computing. Jing, C. Z. (2016). Statistical Communiqu of China Tourism Industry in 2015. China National Tourism Administration Retrieved from http://www.cnta.gov.cn/zwgk/lysj/201610/t20161018_786774.shtml. Jo, Y. S. (Producer). (2016). Asia a fast-growing region for home-sharing firm Airbnb. Retrieved from http://www.straitstimes.com/singapore/asia-a-fast-growing-region-for-home-sharing-firm-airbnb Kitzinger, J., & Barbour, R. (1999). Developing focus group research: Politics, theory and practice : Sage. Lee, D. (2016). How Airbnb Short-Term Rentals Exacerbate Los Angeles's Affordable Housing Crisis: Analysis and Policy Recommendations. Harv. L. & Pol'y Rev., 10 , 229. Lin, P. M. (2018). Is Airbnb a Good Choice for Family Travel?. Journal of China Tourism Research, 1-18. Lin, P. M., Fan, D. X., Zhang, H. Q., & Lau, C. (2019). Spend less and experience more: Understanding tourists’ social contact in the Airbnb context. International Journal of Hospitality Management, 83, 65-73. Low, K. (Producer). (2016). Is Asia the future of the sharing economy? Retrieved from https://e27.co/asia-future-sharing-economy-20160513/ Lucas, L. (2017). Sharing economy takes mercantile twist in China. Financial Times. Retrieved from https://www.ft.com/content/4d060364-41b6-11e7-9d56-25f963e998b2?mhq5j=e Marinova, P. (2017). Why China is Crucial for Airbnb's Global Ambitions. Retrieved from http://fortune.com/2017/12/05/airbnb-china-growth/
Varma, A., Jukic, N., Pestek, A., Shultz, C. J., & Nestorov, S. (2016). Airbnb: Exciting innovation or passing fad? Tourism Management Perspectives, 20 , 228-237. doi:http://dx.doi.org/10.1016/j.tmp.2016.09. Yimin, H. (2015). Three challenges facing Airbnb in China. Retrieved from http://www.businessinsider.com/three-challenges-facing-airbnb-in-china-2015-
Yu, L., & Huimin, G. (2005). Hotel reform in China a SWOT analysis. Cornell Hotel and Restaurant Administration Quarterly, 46 (2), 153-169.
Zervas, G., Proserpio, D., & Byers, J. (2015). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry, Boston U. School of Management Research Paper Nr. 2013–16. Available at SSRN 2366898.
Zervas, G., Proserpio, D., & Byers, J. (2016). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Boston U. School of Management Research Paper (2013-16). Ziwei, L. (2017). Airbnb Well-Placed to Crack the Chinese Market? Doubtful. Retrieved from https://www.yicaiglobal.com/news/airbnb-well-placed-crack-chinese-market-doubtful
Figure 1. Summary of findings Note: + Positive factors, - Negative factors, * Other factors
Government/ Policy
Local residence Hosts
Local Competitors
Users^ Hotel
- 1.4 Local ambassador &
- 1.6 Benefits for being aspecialties host
- 2.1 Lack of security & hygiene
- 2.3 Lack of standard operation, hospitality andstandard guildeline
- Less room resources
- 3.2 Impact on existing hotel &price
- 3.4 Resources integration
- 2.2 Impact on local residents' daily life
- 1.5 Enrich travel experience & relationship
- 2.8 Lack of hotel basic facilities
- No service fee fortraining users
- 3.5 Changing marketing trend
-2.5 Legalization-government
- 3.1 Build a regulation and trustsupport system
Airbnb Platform
+1.1 Function of Airbnb +1.8 Enrich local tourism & cultureplatform communication -2.4 Market positioning -2.7 Not attractive to business traveler
-2.6 Immature trust system
1. Positive Factors
1.1 Function of Airbnb Platform
Easy to use and convenience: Fang, Ye, and Law, (2016); Sablik (2014); Zervas, Proserpio & Byers, (2016) 1.2 Authentic Experience Experience the authentic community: Guttentag (2013); Heo (2016); Dollberg, Shalev & Chen (2010); Pizam (2014); Weber (2014); Tussyadiah, 2016; Ikkala and Lampinen (2015); and Cheng (2016); Lin (2018); Lin et al. (2019) 1.3 Attractive Price Cost-saving: Guttentag (2013); Heo (2016); Lehr (2015); Zervas et al., (2016); Tussyadiah (2016); Weber (2014); Nica & Potcovaru (2015); Oskam & Boswijk (2016); OECD (2016); Lin (2018); Lin et al. (2019) 1.4 Become Local Ambassador
N/A
1.5 Enrich Travel Experience and Relationship
Local experience: Tussyadiah & Pesonen ( 2016 ); Tussyadiah ( 2016 ); Varma et al. ( 2016 ); Lin ( 2018 ) Raising the needs from consumer: Roblek et al. (2016)
2. Negative Factors
2.1 Security Standard and Hygiene Standard
Security issue: Guttentag, 2015
2.2 Effect on Local Residents’ Daily Life
The disturbance of the area security of residents: Jonas (2015); Guttentag (2013); Lehr (2015); Pizam (2014); Mattson (2015); Pariona (2017) 2.3 Lack of Standard Operation and Hospitality Guideline
Service quality and standard: Guttentag (2013)
2.4 Market Position N/A 2.5 Legalization Government Support
Regulated Airbnb: Edelman & Luca (2014) Illegality and taxation: Jonas (2015); Guttentag (2013); Dredge & Gyimothy (2015); Abelmazov & Engstrom (2016); OECD (2016)
3. Other Factors
3.1 Regulation and Trust System
Regulation: Sablik (2014); Jonas (2015); Guttentag (2013); Pizam (2014); Jonas (2015); OECD (2016)
3.2 Effect on Hotel Market and Price
Pricing strategy: Oskam and Boswijk (2016) ; Zervas et al (2016); Sablik (2014); Richard & Cleveland (2016) 3.3 Monitoring and Training by Platform
N/A
3.4 Resource Integration N/A
3.5 Changing the Market Trend
Distrupting tourism (OECD, 2016 )
