Investigating The Effects of Competition from Peer-to-Peer Accommodation Platforms on Hotel X

This study investigated the effects of competition from peer-to-peer accommodation platforms like Airbnb on Hotel X’s strategic operations, profits and market share. Using a mixed method approach the study made use of both quantitative questionnaires from potential guests as well as qualitative interviews with Hotel X’s employees so as to assess how competition from peer-to-peer accommodation platforms influence hotel profits, customer preferences and pricing strategies. Findings from the study showed critical challenges Hotel X is facing including a major shift in guest preferences toward flexible, personalized experiences and affordable accommodations which are provided by peer-to-peer platforms. In order to respond to the competition from peer-to-peer platforms, Hotel X has adapted through implementation of pricing strategies that are flexible and they have also improved their loyalty programs so as to keep competitive advantage. However, the feedback from guests highlights how important further improvements in personalization and service quality are needed. The study finds that Hotel X needs to use digital marketing, improve guest experiences through personalized experiences and change their pricing strategies so as to position itself more effectively against the pressures from competition with peer-to-peer platforms.