Abstract

Purpose

Although networked hospitality businesses as Airbnb are a recent phenomenon, a

rapid growth has made them a serious competitor for the hospitality industry with
important consequences for tourism and for tourist destinations. The purpose of this
report is to analyze consumer buying behavior towards Airbnb, its potential further
development in India and identify perception and awareness of consumer towards
Airbnb.

Methodology
Qualitative Approach has been taken to find the answers to the objectives. Using Focus
Group Discussion we were able to get more accurate data.

Findings
Network platforms as Airbnb are often classified under something called the
“Sharing Economy”, a denomination that obscures their true nature. Airbnb is a
challenging innovation to which traditional hospitality will have to respond.

The awareness and knowledge about the home stay was not a common knowledge
among people though the concept seems to be fit in perfectly. People seems to like
the concept and are willing to buy services.

Related Keywords:

Trends, Scenario planning, Hospitality, Sharing economy, Short stay, Tourist

pressure

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 Contents

Acknowledgement

Abstract

1. Introduction……………………………………………………………………………4
1.1. Airbnb……………………………………………………………………….....4
1.2. Airbnb in India…………………………………………………………………5
1.3. Current issues with Airbnb …………………………………………………..5
1.4. Airbnb Competitors……………………………………………………….......5
1.5. Timeline……………………………………………………………………......6
2. Objectives………………………………………………………………………..........6
3. Research Methodology…………………………………………………………........7
3.1. Qualitative Approach…………………………………………………………….7
3.2. Focus Group Discussion…………………………………………………..........7
3.3. Why Qualitative Approach………………………………………………………7
3.4. Advantages of Qualitative Approach…………………………………………..8
4. Significance of the Topic to Consumer Buying Behavior……………………………..8
4.1. Why this topic…………………………………………………………………..8
5. Data Analysis……………………………………………………………………………….9
5.1. Focus Group Discussion 1……………………………………………….……..9
5.2. Participants Profile………………………………………………………………9
5.3. Focus Group Discussion 2……………………………………………………...16
5.4 Participants Profile……………………………………………………………….16
6. Conclusion………………………………………………………………………………….22

7. Recommendations……………………………………………………………….…………23

8. Bibliography…………………………………………………………………………………24

9. Appendices……………………………………………………………………..…………...25

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 List of Tables

Table 1-How frequently do you travel.............................................................................10

Table 2-Which website or app do you use to your stay……………………………………10

Table 3-How long would you generally stay at a location?………………………………11

Table 4-How many people travel with you on a trip……………………………………….11

Table 5-Do you think hotel prices are apt with respect to the services they provide?
…………………………………………………………………………...………………………12

Table 6- Do you know about any hotel alternatives? ……………………………………..12

Table 7-Have you ever heard about or use Airbnb before?……….…………………...…13

Table 8- What are your views on the Airbnb concept? ……………………..…………….13

Table 9- Would you prefer Airbnb(short term rentals) over other accommodation?
…………………………………………………………...………………………………………14

Table 10- Does knowing about Airbnb makes any difference in your stay duration?
………………………………………………………………………………………………..…14

Table 11Do you think services and concept of Airbnb is legitimate?

………………………………………………………………...…………………………………15

Table 12- Will the experience of Airbnb differ from hotel experience? .…………………15

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 Consumer buying behavior towards
travel accommodations: Competitive
positioning of Airbnb

1. Introduction

1.1 Airbnb
Founded in August of 2008 and based in San Francisco, California, Airbnb is a trusted
community marketplace for people to list, discover, and book unique accommodations
around the world — online or from a mobile phone or tablet. Whether a spare bedroom,
an apartment, a villa or a private island, Airbnb connects travelers to a more diverse and
authentic range of experiences in over 34,000 cities and 190 countries.

Airbnb, the world leader in accommodations of the “sharing economy”, allows you to
find places to stay directly from individuals in thousands of cities around the world.
It allows you to rent apartments (or even entire houses) from people all over the world,
almost everywhere in fact. The platform really revolutionized the world of
accommodations.

To give you an order of magnitude, the company is already worth more than 30 billion.
The Hilton hotel company, which has been around for almost 100 years? 20 billion.
And Airbnb doesn’t even own any real estate. The important thing to know is that it’s
big, and you can trust them.

A fun fact for those of you curious about the name origin, it comes from the abbreviation
for Bed and Breakfast, or B&B. The founder wanted to replicate that with an inflatable
mattress (Air) in his apartment in San Francisco (a city where housing and
accommodations are very expensive).
There are two main options on Airbnb, either to have an entire apartment or house all to
yourself (more expensive of course). But the most common is to only rent a room in a
house and share the place with its owners, or even other travelers.

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1.2 Airbnb in India
Airbnb has seen massive growth in India since its launch. Over one million Indians have
travelled on Airbnb globally. Airbnb listings in India have grown by 115 per cent in the
past year, with over 30,000 listings all across India.
This has been made possible by Airbnb’s initiatives to build a community in the local
market and partnerships with State-run tourism agencies. Airbnb, during his visit to
Mumbai to announce a partnership with the Maharashtra government.

 India is a key strategic market for Airbnb, as India has approximately 410 million
millennials. Which is the target audience age group.
 Airbnb has over 30,000 listings in about 100 cities in the country.
 Goa is Airbnb's biggest market in India with the state offering 4,000 listing
options.

1.3 Current issues with Airbnb (with respect to India)

 Security Issues: There are no security personnel’s available at the location, there
is a risk factor prevailing all the time especially in a country like India.
 There’s no reception, housekeeping or room service.
 Lack of safety and security regulations.

1.4 Airbnb Competitors

 Booking.com

 Trivago

 Hotels.com

 Expedia

 Homestay.com

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 1.5 Timeline

October 2007 –
Development stage.
January 2009

2009 – 2010 Venture funding, beginning of business takeoff.

2011 – 2014 International expansion, more fund raising, steady growth.

User experience, peace with the law, partnerships, more

2014 – 2017
fund raising.

2018 Airbnb announced Airbnb plus.

2019 Airbnb invested in OYO.

2. Objectives

• 2.1 To identify perception and awareness of consumer towards Airbnb and its
competitors.

• 2.2 To evaluate consumer decision making for travel accommodation.

• 2.3 To analyze buying behaviour towards Airbnb.

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 3. Research Methodology

3.1 Qualitative Approach

Qualitative Research is primarily exploratory research. It is used to gain an
understanding of underlying reasons, opinions, and motivations. It provides insights into
the problem or helps to develop ideas or hypotheses for potential quantitative research.
Qualitative Research is also used to uncover trends in thought and opinions, and dive
deeper into the problem. Qualitative data collection methods vary using unstructured or
semi-structured techniques. Some common methods include focus groups (group
discussions), individual interviews, and participation/observations. The sample size is
typically small, and respondents are selected to fulfill a given quota.

3.2 Focus Group Discussions

A focus group discussion (FGD) is a good way to gather
together people from similar backgrounds or experiences
to discuss a specific topic of interest. The group of
participants is guided by a moderator (or group facilitator)
who introduces topics for discussion and helps the group
to participate in a lively and natural discussion amongst
them. The strength of FGD relies on allowing the
participants to agree or disagree with each other so that
it provides an insight into how a group thinks about an
issue, about the range of opinion and ideas, and the
inconsistencies and variation that exists in a particular
community in terms of beliefs and their experiences and practices.

FGDs can be used to explore the meanings of survey findings that cannot be explained
statistically, the range of opinions/views on a topic of interest and to collect a wide
variety of local terms. In bridging research and policy, FGD can be useful in providing
an insight into different opinions among different parties involved in the change process,
thus enabling the process to be managed more smoothly. It is also a good method to
employ prior to designing questionnaires.

3.3. Why Qualitative Approach

In topic such as “Consumer buying behavior towards travel accommodations:
Competitive positioning of Airbnb”. We are more concern about the quality of the
answers and the subconscious gestures that we are going to get from the respondents
rather than interacting with large number of people and compromising our quality of

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research. The open-ended structures of qualitative research make it possible to get
underneath superficial responses and rational thoughts to gather information from an
individual’s emotional response. This is critically important to this form of researcher
because it is an emotional response which often drives a person’s decisions or
influences their behavior.

3.4 Advantages of Qualitative Approach

Subject materials can be evaluated with greater detail. 

 Research frameworks can be fluid and based on incoming or available data.

 Qualitative research data is based on human experiences and observations. 
 Gathered data has a predictive quality to it.
 Qualitative research operates within structures that are fluid. 
 Creativity becomes a desirable quality within qualitative research.
 Qualitative research can create industry-specific insights. 
 Smaller sample sizes are used in qualitative research, which can save on costs.
 Qualitative research provides more content for creative’s and marketing teams. 

4. Significance of the topic to Consumer Buying Behavior

 As consumers, we play a vital role as the decisions we make concerning our

consumption affect the demand. Airbnb is an international brand offering cheap
accommodation for travelers.
 The sharing economy has become a major phenomenon; Airbnb, Uber and
ZipCar. This concept challenges the traditional methods.

4.1 Why this topic?

 Airbnb follows the sharing principle thus, challenging traditional concepts.

Sharing principle has been implemented in other industries for instance in rentals

companies like zipcar and uber has been a hit in recent times. Thus in order to

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 understand sharing principle and gain insights on Airbnb we have selected this

topic.

 Just a few years ago, the emergence of networked hospitality businesses was

hardly a topic of academic nor of commercial interest. With the largest networked

accommodation service, Airbnb, now surpassing the major hotel chains in

number of beds offered and in market valuation

 Airbnb concept and services are ideal in Indian and seems to have a good future.

Network economy vs “sharing economy”

 Sharing is about consumers providing each other temporary access to a good,

and not about the transfer of ownership of the good. Thus, the sharing economy

does not include the second-hand economy, in which goods are sold or given

away between consumers (as occurs on online platforms such as EBay or

Facebook).

 Sharing is about more efficient use of physical assets and not about private

individuals delivering each other a service. After all, physical goods can go

unused, but people cannot. Internet platforms that bring consumers together to

provide each other with services represent the on-demand economy. An example

of such a platform is Task Rabbit, through which you can hire people to carry out

work around the house.

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 5. Data Analysis

5.1. FGD 1

6.2. Participant Profile

Age Group: 19-22

Venue: School of Business

Date: 20th February 2019

Name Age

Anwesh Pradhan 22

Harish Singh 20

Sunil Bisnoi 20

Priyam Singh 19

Sheran Ahmed 19

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 Q 1.How frequently do you travel?

Name Verbal Response Non Verbal Response

Anwesh Travel frequently Hand gestures

Sheran Ahmad Once in six months None
Harish Singh Once in six months Relaxed posture

Priyam Singh Every six months None

Ajit Rana Once in two months Hand gestures

Sunil Bishnoi Once in a year Smiling

Q 2.Which app or website do you use to book your stay?

Name Verbal Response Non Verbal Response

Anwesh Airbnb for international travel. Confident

Sheran Ahmad OYO Eye gaze changes
Harish Singh OYO None

Priyam Singh Make my trip Hand Gestures

Ajit Rana Make my trip None

Sunil Bishnoi Make my trip Continuous hand gestures

Q 3. How many people travel with you on a trip?

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Name Verbal Response Non Verbal Response

Anwesh Solo Normal gestures

Sheran Ahmad Five or six Hand gestures
Harish Singh Four None

Priyam Singh Solo None

Ajit Rana Four None

Sunil Bishnoi Four to five Continuous hand gestures

Q 4. How long would you generally stay at a location?

Name Verbal Response Non Verbal Response

Anwesh Twelve to fifteen days Change of body posture

Sheran Ahmad It depends on the destination None
Harish Singh As per the destination Hand Gestures

Priyam Singh It depends on the destination None

Ajit Rana Fifteen to twenty days None

Sunil Bishnoi Two to Three Hand movement

Q 5. Do you think hotel prices are appropriate with respect to the services they
provide?

Name Verbal Response Non Verbal Response

Anwesh Pradhan Immediate resonance with a Confident

no
Sheran Ahemad Sometimes Hand gestures
Harish Singh No None
Priyam Singh No None
Ajit Rana No None

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Sunil Bishnoi No Not interested

Q 6.Do you know about any hotel alternatives?

Name Verbal Response Non Verbal Response

Anwesh Guest houses Confident

Adding points on others
responses
Sheran Ahmad Hostels, camping Confident and hand gestures
Harish Singh Couch Surfing Nervous
Hostels
Priyam Singh Positive review. None
Ajit Rana Government guest houses Hand gestures

Sunil Bishnoi None None

Q 7.What are your views on Airbnb concept?

Name Verbal Response Non Verbal Response

Anwesh Have use the services before Confident and hand gestures
and have positive review.
Sheran Ahmad Finds the concept interesting. Pro–active, continuous
hand gestures
Harish Singh Neutral review Body movement

Priyam Singh Positive review Hand Gestures

Ajit Rana Positive review Frequent shaking of
head
Sunil Bishnoi Positive review Nervous

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 Q 8. Would you prefer Airbnb over other accommodation?

Name Verbal Response Non Verbal Response

Anwesh Yes, always uses Airbnb None

Sheran Ahmad Yes while traveling Surprised
internationally
Harish Singh Yes Body movement
Priyam Singh Yes None
Ajit Rana Yes Frequent shaking of head
Sunil Bishnoi None Not interested

Q 9. Does knowing about Airbnb makes any difference in your stay duration?

Name Verbal Response Non Verbal Response

Anwesh Yes Hand gestures and head movement

Sheran Ahmad Yes, because it’s cheaper Tone becomes louder

Harish Singh Yes Frequent shaking of head
Priyam Singh No Hand Gestures

Ajit Rana No None

Sunil Bishnoi Yes Distracted

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 Q 10. Do you trust Airbnb ?

Name Verbal Response Non Verbal Response

Anwesh Yes None

Sheran Ahmad Yes, people already trust it Pro-active

Harish Singh It depends on the host Frequent shaking of head
Priyam Singh Agrees with Sheran None

Ajit Rana Agrees with Sheran None

Sunil Bishnoi Agrees with Shrean

5.3 FGD 2

6.4. Participants Profile

Age Group – 15-22

Venue: Hotel Impreza

Date: 22nd March 2019

Name Age

Aditya Karanwal 15

Adityanarayan Sharma 20

Anurag Chauhan 22

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 Vinayak Arora 21

Khushal Khatri 20

Q 1.How frequently do you travel?

Name Verbal Response Non Verbal Response

Aditya Singh Have use the services before Eye gaze changes
and have positive review.
Adityanarayan Sharma Finds the concept interesting. Pro–active, continuous
hand gestures
Anurag More accustomed to taste Hand Gestures

Vinayak Positive review. Hand Gestures

Khushal Positive review. None

Q 2.Which app or website do you use to book your stay?

Name Verbal Response Non Verbal Response

Aditya Singh Have use the services before Eye gaze changes

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 and have positive review.
Adityanarayan Sharma Finds the concept interesting. Pro–active, continuous
hand gestures
Anurag More accustomed to taste Hand Gestures

Vinayak Positive review. Hand Gestures

Khushal Positive review. Frequent shaking of
head

Q 3.How long would you generally stay at a location?

Name Verbal Response Non Verbal Response

Aditya Singh Have use the services before Eye gaze changes
and have positive review.
Adityanarayan Sharma Finds the concept interesting. Pro–active, continuous
hand gestures
Anurag More accustomed to taste Hand Gestures

Vinayak Positive review. Hand Gestures

Khushal Positive review. Frequent shaking of
head

Q 4.How many people travel with you on a trip?

Name Verbal Response Non Verbal Response

Aditya Singh Have use the services before Eye gaze changes
and have positive review.

Page | 17
Adityanarayan Sharma Finds the concept interesting. Pro–active, continuous
hand gestures
Anurag More accustomed to taste Hand Gestures

Vinayak Positive review. Hand Gestures

Khushal Positive review. Frequent shaking of
head

Q 5. Do you think hotel prices are appropriate with respect to the services they
provide?

Name Verbal Response Non Verbal Response

Aditya Singh Immediate resonance with a Confident

no
Adityanarayan Sharma Sometimes Hand gestures
Anurag No None
Vinayak No None
Khushal No None

Q 6.Do you know about any hotel alternatives?

Name Verbal Response Non Verbal Response

Aditya Singh Have use the services before Eye gaze changes
and have positive review.
Adityanarayan Sharma Finds the concept interesting. Pro–active, continuous
hand gestures
Anurag More accustomed to taste Hand Gestures

Page | 18
Vinayak Positive review. Hand Gestures
Khushal Positive review. Frequent shaking of
head

Q 7. Have you ever heard about Airbnb?

Name Verbal Response Non Verbal Response

Aditya Singh Has used the services Eye gaze changes

before
Adityanarayan Sharma Yes Excited, more frequent hand
Gestures
Anurag No None
Vinayak Yes Blank
Khushal Yes None

Q 8.What are your views on Airbnb concept?

Name Verbal Response Non Verbal Response

Aditya Singh Have use the services before Eye gaze changes
and have positive review.
Adityanarayan Sharma Finds the concept interesting. Pro–active, continuous
hand gestures
Anurag More accustomed to taste Hand Gestures

Vinayak Positive review. Hand Gestures

Khushal Positive review. Frequent shaking of
head

Page | 19
 Q 9. Would you prefer Airbnb over other accomodation ?

Name Verbal Response Non Verbal Response

Aditya Singh Yes None

Adityanarayan Sharma No Surprised
Anurag Yes Frequent shaking of head
Vinayak Yes None
Khushal Yes Frequent shaking of head

Q 10. Does knowing about Airbnb makes any difference in your stay duration?

Name Verbal Response Non Verbal Response

Aditya Singh It was already unhealthy, Neutral None

Reaction
Adityanarayan Didn't bothered, still consuming Tone becomes louder
Sharma
Anurag Neutral Reaction Frequent shaking of head
Vinayak I don’t trust the news and was Hand Gestures
still consuming
Khushal Stopped the Consumption for a None
while

Q 11. Do you think services and concept of Airbnb is legitimate?

Name Verbal Response Non Verbal Response

Aditya Singh It was already unhealthy, None

Neutral Reaction
Adityanarayan Sharma Didn't bothered, still Tone becomes louder
consuming

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Anurag Neutral Reaction Frequent shaking of head
Vinayak I don’t trust the news and was Hand Gestures
still consuming
Khushal Stopped the Consumption for None
a while

Q 12. Do you think experience of Airbnb will differ from Hotel experience ?

Name Verbal Response Non Verbal Response

Aditya Singh Yes None

Adityanarayan Sharma Yes Proactive

Anurag No None
Vinayak No, but we limited our None
consumption
Khushal Yes None

7. Conclusion

• People are satisfied with hotel services but they find prices high and
constantly changing.

• Most of the participants are not aware about Airbnb due to lack of
advertisement by the company.

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 • Every participant liked the concept of Airbnb and they think Airbnb
has a good future in India.

• Hotels are most preferred travel accommodation for travellers for

short duration trips.

• Frequent travellers and people who stay for longer durations prefer
Airbnb over other accommodations.

• Airbnb is a good way to get mixed up in the local culture.

8. Recommendation
Retailers should be encouraged to ask questions and raise doubts. The idea should be
to generate a bank of ideas to help the company deal with the crisis.

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India needs to embrace structural changes to ensure food safety for future generations.
The main concern stems from the Food Safety Standards Authority of India (FSSAI),
created under the Food Safety and Standards Act, 2006.
The re-launch should change the product packaging to give it a new start. The company
should also change its labeling to ensure it does not violate food safety norms.
Respondents reported the unavailability of Maggi in certain regions as a minus point.
Respondents even highlighted the fact that what they like most about Maggi is its
authentic taste and rather than trying to experiment with new flavors it’s should focus on
the endorsement and distribution chain of its classic flavor.

9. Bibliography

Page | 23
 Liang, L.J. (2015), “Understanding repurchase intention of Airbnb consumers: perceived
authenticity, EWoM and price sensitivity”, master thesis, University of Guelph,
Guelph. [Google Scholar]
 McNamara, B. (2015), “Airbnb: a not-so-safe resting place”, Colorado Technology Law
Journal, Vol. 13 No. 1, pp. 149-69. [Google Scholar]  [Infotrieve] .
 Stors, N. and Kagermeier, A. (2015), “Motives for using Airbnb in metropolitan tourism –
why do people sleep in the bed of a stranger?”, Regions Magazine, Vol. 299 No. 1, pp. 17-
9. [Crossref] , [Google Scholar]  [Infotrieve]
 Gandhi, T.C., “Marketing A Managerial Introduction”, 2003.
 Yeoman, I. , Tan Li Yu, , R. , Mars, M. and Wouters, M. (2012), 2050 – Tomorrow’s
Tourism, Channelview, Bristol, CT. [Google Scholar]
 https://www.thehindubusinessline.com/news/india-is-one-of-the-top-3-strategic-markets-for-
airbnb/article24156680.ece
 https://www.airbnb.in/aboutus
 https://home.bt.com/lifestyle/travel/travel-advice/what-is-airbnb-11363981595930
 https://www.emeraldinsight.com/doi/full/10.1108/JTF-11-2015-0048
 https://en.wikipedia.org/wiki/airbnb

Appendices

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Questionaire

 How frequently do you travel?

 Which website or app do you use to book your stay?
 How long would you generally stay at a location?
 How many people travel with you on a trip?
 Do you think hotel prices are apt with respect to the services they
provide?
 Do you know about any hotel alternatives?
 Have you ever heard about or use Airbnb before?
 What are your views on the Airbnb concept?
 Would you prefer Airbnb(short term rentals) over other
accommodation?
 Does knowing about Airbnb makes any difference in your stay
duration?
 Do you think services and concept of Airbnb is legitimate?
 Does the experience of Airbnb differs from hotel experience?

Page | 25