Hotels vs. Peer-to-Peer Accommodation Rentals: Text Analytics of Consumer Reviews in Portland, Oregon

Abstract

Peer-to-peer (P2P) accommodation rentals continue to grow at a phenomenal rate. Examining how this business model affects the competitive landscape of accommodation services is of strategic importance to hotels and tourism destinations. This study explores the competitive edge of P2P accommodation in comparison to hotels by extracting key content and themes from online reviews to explain the key service attributes sought by guests. The results from text analytics using terminology extraction and word co-occurrence networks indicate that even though guests expect similar core services such as clean rooms and comfortable beds, different attributes support the competitive advantage of hotels and P2P rentals. While conveniences offered by hotels are unparalleled by P2P accommodation, the latter appeal to consumers driven by experiential and social motivations. Managerial implications for hotels and P2P accommodation are provided.