Trisakti Institute of Tourism Library
Trisakti Institute of Tourism Library
Proyek Akhir
CRITICAL INVESTIGATION INTO IMPACT OF SHARING HOME RENTALS ON COVENTIONAL HOTELS: A CASE STUDY OF THE EMERGENCE OF AIRBNB IN INDONESIA
This research is conducted with the purpose to understand the manner in which emergence of Airbnb in the Indonesian market affected the conventional hotel sector. Considering the rise of sharing home rentals and its increasing popularity among the consumers, it is important to gauge the effects of this sector on the conventional hotel sector. The sharing economy is still in its early stages, making it an ideal market for understanding the challenges and opportunities posed by Airbnb's growth in Indonesia and existing studies frequently concentrate primarily on the growth and advantages of sharing economy platforms without adequately addressing their implications for established conventional hotels. This study involves a study among the managers and employees of the conventional hotels in Indonesia, to understand the manner in which Airbnb has affected their business and investigate the potential causes behind the same. This study involves the use of descriptive statistics for analysing the responses received from the participants. A total of 153 participants were involved in this study, whose responses were analysed quantitatively to achieve the research objectives. The researcher's analysis of the descriptive quantitative survey led the author to the conclusion that Airbnb poses a threat to Indonesia's conventional hotel industry. Therefore, the outcomes of the research indicate that, there has been a significant growth of Airbnb, in Indonesian market even though the company entered the country quite late as compared to other countries. The factors which encouraged the growth of Airbnb as an alternative of hotel sector included, its cost effectiveness, inability of hotels to adapt according to customer needs, and innovative advertisements by Airbnb. Furthermore, it was found that Airbnb is significantly competitive to the hotel sector. While there is weak evidence in this research that Airbnb caused a reduction in footfall in the conventional hotels, strong evidence exists to support that overall profitability of the hotels has decreased due to Airbnb. Consequently, in order for conventional hotels to compete in the market, it is suggested that they ensure better cost effectiveness, greater flexibility, a richer guest experience, improved amenities offered, a more personalized experience, and seamless transactions from room booking to check-out. An important limitation is the data collection method, relying solely on surveys. Surveys may miss qualitative insights, limiting the research. Combining quantitative findings with qualitative data, like interviews with hotel employees (3-4) and tourists' preferences for Airbnb or hotels in Indonesia, would enhance accuracy and specificity of research findings.
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