Literature Review: Millennial Accommodation Preferences, Airbnb

This literature review explores the factors influencing accommodation choices, particularly focusing on Airbnb and millennial travelers. It examines how digital innovation, visibility, and online marketing shape purchasing decisions. The review highlights the role of sharing economy, price, authenti...Read More

Running head: LITERATURE REVIEW
Literature Review
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1LITERATURE REVIEW
Table of Contents
Factors influencing choice of accommodation among millennial:..................................................2
Motivation among travelers behind choosing Airbnb:....................................................................3
References:......................................................................................................................................6

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Factors influencing choice of accommodation among millennial:
The travel and tourism is one of the most emerging sectors across the world, which is
experiencing massive growth in recent times. This industry holds a strong contribution towards
global economy. As discussed by Wang & Jeong (2018) the industry is experiencing massive
expansion of the travelers. However, there are certain factors, which are playing a pivotal role in
terms of shaping purchasing decision of the travelers. Digital innovation is one of the most
important factors behind influencing travelers to frame their purchasing decision. Rapid
development of technology is making it easy for the travelers to book hotels through online,
making payment to the hotels along with attaining excellent quality of rom service. Thus, Chen
& Chang (2018) stressed on the fact that innovation is being executed in the hotels in terms of
catching the attention of travelers. Being of the most famous hotels, Airbnb has introduced
personalized transport services for the travelers. Thus, it can be said that innovation is the major
factor behind influencing purchasing decision of the travelers.
Visibility is another imperative factor to influence the purchasing attitude of travelers.
This can be regarded as the extent to which the travelers can perceive a hotel and assess them
behind framing their purchasing decision. According to Birinci, Berezina & Cobanoglu (2018) as
the trend of accessing internet for any purpose is increasing in a rapid manner, the hotels must
take strong action in terms of strengthening their visibility. All the information related to the
hotel must be available online, which can make it easy for the travelers to frame their purchasing
decision after assessing a hotel from all the aspects. For the case of Airbnb, all the information
related to the hotel are available in its official website. This is helping the customers to perceive
the hotel properly. Yakin et al., (2017) commented that prompt emergence of internet marketing
is another vital factor to effect buying attitude of the travelers. In this case also, drastic

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development of technology is paving the way for the hotels to promote their hotels through
online. This is the way of aligning wide range of customers. At the same time, due to online
booking system, the cost of booking the hotels has also decreased. This is also acting as a driving
force behind the customers to frame their decision for personalized travel. Sung, Kim & Lee
(2018) highlighted the fact that the inclusion of online booking agencies is helping the customer
to explore the online ratings and observe the reviews of the hotels. These factors are helping the
travelers to frame their decision. Sharing economy is one of the most imperative factor to
influence the decision of the travelers. Due to the increasing trend of peer-to-peer lodging
platform, the gap of cost in between hotels and lodges is decreasing drastically. This is the
reason, for which the travelers are becoming able to book hotel as per their own budget. One of
the greatest advantages of this sharing economy is that, the occupancy rate of traditional hotels is
increasing rapidly. This is also helping the travelers to perceive multiple hotels before framing
their decision (Oktadiana & Kurnia, 2011).
Motivation among travelers behind choosing Airbnb:
Airbnb is experiencing sustainable growth over the past few years with millions of
travelers. Excellent quality of service is one of the major reasons, for which Airbnb are
becoming able to keep the traveler attracted. As stated by Oskam & Boswijk (2016), Price is one
of the major motivational factor amen the travelers to choose Airbnb. The cost of
accommodating of Airbnb is comparatively lower than that of other hotels. The inclusion of
disruptive innovation, such as implementation of sharing economy strategy is playing a pivotal
role for Airbnb to provide service to the customers in a cost effective manner. There are wide
range of low cost options available in Airbnb, from which the millennial can choose
accommodation as per their budget. Authenticity is also a great motivation for the millennial

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travelers to choose Airbnb. Mao & Lyu (2017) highlighted by saying that staying in Airbnb can
offer the travelers with the feeling of authenticity. Unique service, offered by Airbnb is a critical
factor to generate sense of satisfaction among the customers. Comprehensive F&B (Food and
Beverage) program is helping Airbnb to promote local culture and thereby support the travelers
to have an idea regarding local arts and events. South X San Jose is one of the major programs,
arranged by Airbnb in order to promote local culture.
Convenient location is another vital motivational factor behind the travelers to choose
Airbnb. These are generally located at the hub of the cities, which makes it easy for the travelers
to locate the hotels easily. Birinci, Berezina & Cobanoglu (2018) put stress on the ground that
Airbnbs are immersed mostly in the townhomes, which offers the travelers with the feeling that,
they are belonging to the city. This is the reason for which the travelers are extremely inclined
towards Airbnb. The inclusion of’ lucrative amenities is also a major motivational factor for
selecting Airbnb for personal traveling. The amenities such additional suit, minibars, instant tea
and coffee maker are available in Airbnb. This paves the way for customers to feel like home
while staying at Airbnb. Such feeling like home is an emerging trend among the traveler, which
is serving Airbnb with the ability to catch the attention of wide range of millennial travelers.
Yakin et al., (2017) commented that in order to keep the travelers attracted, the management of
Airbnb is taking special care towards hiring efficient interior designers. This is the way, through
which Airbnb is aiming to modify their residential property and thus catch the attention of
travelers.
According to the recent trend of global travel and tourism industry, the travelers always
want functional communal spaces for interacting with others. There lies he reason, for which

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most of travelers are inclined with Airbnb. In Airbnb, there are large spaces outside the rooms,
which comprises of coffee shops and bars, where the travelers can easily interact with each other.
Technology is increasing in a drastic manner. Majority of organizations irrespective of
the sectors are integrating high end technology with their conventional process in terms of
promoting sustainable growth of business (Wang & Jeong, 2018). This is so with the case of
Airbnb also. As technology plays a pivotal role in the way of framing decision making process of
Millennials, Airbnb is showing utmost commitment towards strengthening their technological
platform. The organization operates a very comprehensive communication channel to keep the
travelers informed regarding their services. With the assistance of communication channel,
Airbnb is also amplifying their visibility, which is very much needed to catch the attention of
customers. Photography of the hotels are available online, which is making it easy for the
travelers to frame their purchasing decision. The online review system is another significant
matter of consideration in this context. Sung, Kim & Lee (2018) observed that this is the biggest
motion due to the fact that through the review system, the travelers can perceive the experience
of other people, who have visited Airbnb previously. This is the way of choosing a hotel after
exploring both is positive and negative factors. Flexibility is also acting as a biggest motivational
factor among the millennial to choose Airbnb. There are multiple hotel that are extremely strict
in terms of check-ins and check-outs. This is not so with the case of Aitbnb. The travelers can
roam around in accordance with their own schedule while staying at Airbnb. This is also a major
reason behind choosing Airbnb for personal travel.

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References:
Birinci, H., Berezina, K., & Cobanoglu, C. (2018). Comparing customer perceptions of hotel and
peer-to-peer accommodation advantages and disadvantages. International Journal of
Contemporary Hospitality Management, 30(2), 1190–1210.
Birinci, H., Berezina, K., & Cobanoglu, C. (2018). Comparing customer perceptions of hotel and
peer-to-peer accommodation advantages and disadvantages. International Journal of
Contemporary Hospitality Management, 30(2), 1190–1210.
Chen, C.-C., & Chang, Y.-C. (2018). What drives purchase intention on Airbnb? Perspectives of
consumer reviews, information quality, and media richness. Telematics and Informatics,
35, 1512–1523.
Mao, Zh, & Lyu, J (2017). Why travelers use Airbnb again? An integrative approach to
understanding travelers’ repurchase intention. International Journal of Contemporary
Hospitality Management, 29(9), 2464–2482.
Oktadiana, H., & Kurnia, A. (2011). How Customers Choose Hotels. Binus Business Review,
2(1), 510-517.
Oskam, J., & Boswijk, A. (2016). Airbnb: the future of networked hospitality businesses.
Journal of Tourism Futures, 2(1), 22-42.
Sung, E., Kim, H., & Lee, D. (2018). Why Do People Consume and Provide Sharing Economy
Accommodation?—A Sustainability Perspective. Sustainability, 10(6), 2072.
Wang, C. (Renee), & Jeong, M. (2018). What makes you choose Airbnb again? An examination
of users’ perceptions toward the website and their stay. International Journal of
Hospitality Management, 74, 162–170.

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Yakin, V., Kacar, A. İ., & Ay, C. (2017). Sharing Economy: Why the Turkish consumers use
Airbnb?. Journal of Marketing and Consumer Behaviour in Emerging Markets, (2 (6)),
25-36.