Influence of Peer to Peer and Budget Hotel Demand on Choice of Accommodation in Nairobi City County, Kenya
Murage, Abby Christine Njeri
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There has been a rivalry between Airbnb and the hotel industry across the world, which has mostly been on media fronts. The battle between Airbnb and budget hotels has been reported in many countries. Airbnb has been criticized for conferring unfair competition to established hotels, reducing job security, avoiding tax and posing a threat to safety, health and disability compliance standards. The study examined the relationship between customer focus and choice of accommodation in budget hotels and Airbnb platforms in Nairobi City County, Kenya. The specific objectives of the study were to examine the influence of customer profiles, customer needs, customer motivation and customer segmentation on the choice of accommodation in budget hotels and Airbnb platforms in Nairobi City County, Kenya. The study was underpinned by Porter's Five Forces Model. The study adopted the cross-sectional survey design. The use of the design enabled the researcher to collect data from various respondents simultaneously without manipulation. The target population in budget hotels was 814 customers and 88 employees from the management level and 1500 from homes listed as Airbnb accommodation listings. The unit of observation were customers and employees from the management level. In Airbnb, owners of the homes (accommodation) were considered to be part of the employees at the management level. The sample size was 277 for the budget hotels and 316 for the Airbnb accommodation. The study used a stratified random technique to select the respondents. Questionnaires and interview guides were used to collect the data. Questionnaires were administered to the customers and interview guides to the managers (employees at the management level). The analysis of the data was done using descriptive and inferential statistics. The descriptive statistics included the percentage, mean and standard deviation, while inferential statistics included the correlation analysis and regression analysis. The correlation results established that a positive and significant association exists between a customer profile, customer needs, customer motivation, customer segmentation and choice of accommodation. The regression results revealed that customer profile is positively and significantly related to the choice of accommodation hotels (β=.382, p=0.000). Further, it was found that customer needs and choice of accommodation is positively and significantly related (β=.478, p=0.000). Moreover, the results indicated that customer motivations and choice of accommodation is positively and significantly related (β =.534 p=0.000). It was found there is a positive and significant relationship between customer segmentation and the choice of accommodation (β =.550, p=0.000). The study recommended that Regulators of Hospitality and Tourism in Kenya ought to develop a mechanism that will monitor the activities of Airbnb to ensure there is fair competition. The study also recommended that both the budget hotels and Airbnb accommodation platforms need to be keen on customer focus to increase the performance. The hotels can focus on comfort, security, privacy, convenience, cost, guest amenities and reputation and this can ensure the hotels remain preferred by the customers. Moreover, another study is suggested to be conducted in other hotels other than budget hotels. Conducting the studies in diverse hotels category intensify comparison for effective decision-making.