Substitution between sharing accommodation and hotels: A behavioral economic demand curve analysis

Abstract

Researchers have confirmed the substitution of sharing accommodation for hotels. The existing assessments of the substitution have primarily focused on the inverse relationship between sharing accommodation supply and hotel performance, with a lack of examination based on demand curve analysis. This study utilizes behavioral economic demand models to construct alone-price/own-price demand curves for hotels and cross-price demand curves for sharing accommodation to quantify the substitutive relationship between sharing accommodation and different hotel types. Furthermore, we explore the variations in this substitutive relationship by travel companion and customer group. The analysis is dual-directional, including both the substitutability of sharing accommodation for hotels and the reverse relationship. The findings inform market competition strategies for hotels and sharing accommodation.