THE RELATIONSHIP BETWEEN MOTIVATION TO USE AIRBNB AND GUESTS’ REPURCHASE INTENTION: MODERATING EFFECT OF CONSIDERATION SET By Wen Jiang Bachelor of Art – Recreation, Park and Tourism San
Within the modern hospitality industry, the sharing economy is experiencing rapid growth, a trend documented by Guttentag and Smith (2017) Airbnb emerges as the flagship platform in this space, functioning as an online marketplace that enables homeowners to offer short-term rentals to tourists By connecting hosts with travelers, Airbnb expands lodging options beyond traditional hotels, highlighting how the sharing economy reshapes guest accommodation and travel experiences.
2015) Founded in 2008, Airbnb has expanded rapidly around the globe, having the biggest market share for lodging in the sharing economy By the summer of 2016, more than one- hundred million guests have used Airbnb (Chafkin & Newcomer, 2016; Guttentag, 2015) Airbnb controls listings of over 2.3 million room inventories, giving it a market valuation of approximately 30 billion dollars (Chafkin & Newcomer, 2016)
As an exemplar of the sharing economy, Airbnb has created a long-term threat to the
“traditional” hotel industry (Guttentag, Smith, Potwarka, & Havitz, 2018) Its room inventories are more than the total room inventories of the three largest hotel companies combined (i.e Hilton, Marriott, and InterContinental) (Chafkin & Newcomer, 2016) Its market valuation is thirty percent greater than that of the Hilton (Chafkin & Newcomer, 2016) Twenty-five percent of leisure travelers and 23% of business travelers were expected to use Airbnb by the end of
A 2017 study by Molla shows that roughly two-thirds of Airbnb users consider the service a substitute for traditional hotels, highlighting Airbnb's emergence as a mainstream lodging option (Molla, 2017; Guttentag & Smith, 2017) Looking ahead, Airbnb's market share is expected to keep growing, with the strongest momentum among younger travelers—particularly those under 40 (Guttentag & Smith, 2017).
& Smith, 2017) This market share is based on the percentage of total sales in the lodging industry
To stay competitive with Airbnb, hoteliers must understand the factors behind its sustained success Previous research shows that service quality and higher price value, when compared with traditional hotel accommodations, are the top drivers of Airbnb's appeal In particular, perceived price value stands out as Airbnb's main strength, attracting potential guests and encouraging current guests to stay loyal.
Price-value analysis remains a useful framework for understanding guests’ decisions on Airbnb However, other factors such as location, sustainability, social interaction, and novelty also influence guests’ choice when using the service (Guttentag et al., 2018; Mao & Lyu, 2017; Hamari, Sjöklint, & Ukkonen, 2016; Mody, Suess, & Lehto, 2017; Tussyadiah & Zach, 2015).
Airbnb’s appeal goes beyond perceived price value, driven by three main factors First, traditional hotels face cost disadvantages compared with Airbnb because they must cover occupancy taxes, extensive safety and fire-code compliance, and liability insurance—costs not typically borne by hosts Second, ongoing regulations and compliance requirements—such as ADA accessibility and local fire and safety codes—make it nearly impossible for hotels to match Airbnb on price or economic value (Llewellyn, 2014) Third, prior research shows that price and economic benefits are often less influential than other motivators; among budget travelers, price drives no more than about 30% of accommodations decisions, while factors like authentic experiences and close personal interactions steer bookings (Lamb, 2011; Quinby & Gasdia, 2014; Edwards, 2013).
While 'connection' is a central consideration in bookings, research shows a broader set of factors shaping the choice between Airbnb and traditional hotels In addition to connection, travelers weigh location and a homely feel, price and economic value, alignment with the sharing economy ethos, sustainability, and electronic word of mouth, along with authenticity and hedonic enjoyment Social influence and perceived value, home benefits, and opportunities for social interactions and community also matter, helping to explain why guests increasingly choose Airbnb listings over conventional hotels (Camilleri).
& Neuhofer, 2017; Chu & Choi, 2000; Dolnicar & Otter, 2003; Guttentag & Smith, 2017;
Research across multiple studies (Hamari et al., 2016; Johnson & Neuhofer, 2017; Liang, 2015; Mao & Lyu, 2017; Mody et al., 2017; Poon & Huang, 2017; Satama, 2014; Tussyadiah & Pesonen, 2016; Tussyadiah & Zach, 2015; Yang & Ahn, 2016) has explored what entices guests to book on Airbnb, indicating that factors such as price, trust, host credibility, reviews, and platform usability influence booking decisions; these findings call for examining how these factors interact to shape guest purchase behavior in the Airbnb marketplace.
Recent research shows that guests’ purchasing decisions are influenced by a complex suite of emotions linked to decision-making cognitive appraisals (Achar, So, Agrawal, & Duhachek, 2016) Because motivation can induce individuals to behave in certain ways, this study draws on motivation theory (Crompton, 1979; Dann, 1977, 1981) to examine how intrinsic and extrinsic motivators shape Airbnb guest choices Although existing studies have explored the effects of both intrinsic and extrinsic motivators on Airbnb guests, two key gaps persist: there is no prior literature that categorizes motivators by how they are defined, leading to overload factors; and the field lacks consistent definitional clarity for motivator constructs For example, the sharing economy ethos discussed by Guttentag et al (2018) illustrates the definitional ambiguity that can complicate motivation research in the peer‑to‑peer lodging context.
Reflecting the sustainability framework proposed by Tussyadiah and Pesonen (2016) and Hamari et al (2016), the sharing economy ethos and sustainability concepts are treated as complementary drivers When these paradigms are considered together, the motivators can help reduce unnecessary waste and lessen negative environmental impacts Accordingly, this study aims to classify the existing motivators shaping participation in the sharing economy.
Grounded in the push-pull theory, simply categorizing Airbnb motivators as intrinsic or extrinsic fails to capture their true impact on consumer behavior; this study examines the linkage between intrinsic and extrinsic motivators and guest repurchase intention to illuminate how these drivers influence repeat bookings, addressing three major reasons for examining their effects.
To boost future sales, business owners prioritize maximizing favorable repurchase intention, because repurchase intention is a key predictor of actual buying behavior and is closely tied to future revenue (Dodds, Monroe, & Grewal, 1991) By understanding what drives repurchase decisions—such as product quality, perceived value, and the quality of the customer experience—marketers can design strategies that nurture repeat purchases and sustain growth.
Morwitz, 2014) Since it costs approximately five times to attract new consumers compared to the cost of retaining current consumers, repurchase intention will bring more benefits to business entities
Determining whether intrinsic or extrinsic motivators most strongly influence repurchase intention is essential for guiding strategy in hospitality platforms like Airbnb Existing research highlights price/value as the most significant driver of Airbnb guests’ repurchase intention (Lamb, 2011; Morgan Stanley Research, 2016; Quinby & Gasdia, 2014; Tussyadiah, 2015) Depending on the study outcomes, the present research can help business owners tailor their products and services to boost loyalty and repeat bookings For example, if the results show that novelty is the motivator with the greatest effect on a guest’s repurchase intention, hotel managers and Airbnb hosts should invest in enhancing the novelty of their offerings to attract more potential guests.
This study treats its defined consideration set as the moderator of the linkages between motivators and Airbnb guests’ repurchase intention Because prior research has not tested whether Airbnb guests also consider hotel accommodations, assuming all Airbnb guests are the same may be invalid In fact, some guests may initially consider hotels and then decide to purchase accommodations using Airbnb.
This chapter surveys prior studies on Airbnb guest motivation and the consideration set that shapes decision making, beginning with a review of motivation theory and followed by a discussion of the motivators that lead guests to choose Airbnb Drawing on push–pull motivation theory, it classifies these motivators as intrinsic or extrinsic, highlighting how they influence Airbnb selection The second section provides an overview of repurchase intention and the consideration set, detailing how guest decisions are affected by the identified motivators After examining motivation theory, mapping Airbnb motivators, and analyzing repurchase intention and the consideration set, the chapter presents hypotheses to be tested.
Motivation can be described as “the reasons underlying behavior” (Guay et al., 2010, p
Motivation shapes how people behave and is a key driver in consumer behavior As Jansson-Boyd (2010) notes, motivation is the process that guides people toward certain actions, and it has been shown to be a central factor behind consumer decisions to purchase products (Smith, 1954) In this framework, motivation is typically categorized into two types: extrinsic motivation and intrinsic motivation (Calder & Staw, 1975; Deci, 1971, 1972; Pinder, 1976; Porac & Meindl, 1982).
Intrinsic motivation refers to the individual’s inherent desire to engage in an activity for its own sake, while push factors—defined as the expected outcomes or values that drive people to perform certain activities—represent a source of extrinsic motivation Extrinsic motivation arises from external factors that drive an individual to perform certain activities.
External factors are separate from the activity itself and can drive motivation through outcomes like better job performance, higher pay, and promotions (Lawler & Porter, 1967; Mitchell & Biglan, 1971; Vroom, 1964) The perceived usefulness of using a computer is considered extrinsic motivation (Davis, Bagozzi, & Warshaw, 1992) By contrast, intrinsic motivation relates to performing and enjoying the activity itself, including the pleasure of using a computer (Berlyne, 1966; DeCharms, 1968; White, 1959).
To understand Airbnb guest motivation, scholars commonly apply the push–pull theory in hospitality, a framework that distinguishes motivators as intrinsic (push) or extrinsic (pull) Push factors refer to an inherent desire to act for personal satisfaction, while pull factors denote the expected outcomes or values that attract people to a destination or experience Dann (1977, 1981) identifies 'escape' as a key push motive—the urge to break away from routine stressors such as work, a demanding boss, commutes, or home life In contrast, pull motives are the desirable features of a destination, such as sunshine, a relaxed tempo, and friendly natives, which can attract travelers, as when sun and sea drew millions of North American tourists in the summer (Dann, 1981) Thus, push factors capture intrinsic motivations and pull factors capture extrinsic motivations, a distinction that remains central to hospitality and tourism motivation research (Crompton, 1979; Dann, 1977, 1981; Gnoth 1977; Uysal & Jurowski 1994).
Existing literature on intrinsic and extrinsic motivation mostly covers general business contexts—ranging from retail consumer behavior to work and school performance—and builds on theoretical foundations from Berlyne (1966), DeCharms (1968), and White (1959) Only a handful of exceptional studies have investigated and classified both intrinsic and extrinsic motivators behind customers’ choices in the hotel industry Research on motivators in broader business settings has not identified hotel- or resort-specific features that would attract consumers, revealing a gap where hotel attributes could play a decisive role in shaping guest decisions and experiences.
Research on hotel consumer motivation indicates that both tangible amenities (physical facilities and on-site features) and intangible offerings (service quality, brand value, and memorable experiences) continually attract guests to hotels and resorts Because hotel products are largely intangible, they differ from other market offerings, with these intangible assets making hotels experience-dominant service contexts (Shaw, Bailey, & Williams, 2011).
Related to push factors, uniqueness-seeking (Wang, Luo, & Tang, 2015), interpersonal experience (Wang et al., 2015), social networking (Wang et al., 2015), health trends (Damijanić
& Luk, 2017), relaxation and award (Damijanić & Luk, 2017), novelty (Damijanić & Luk,
Research shows that a homey atmosphere, local touch, and strong guest–host relationships are linked to intrinsic motivators that drive guests to book boutique hotels, wellness hotels, and alternative accommodations In wellness hotels, three intrinsic motivators help explain guest behavior: health trends, representing the inner desire to improve health; relaxation, a wish to de-stress in a peaceful environment; and novelty, the urge to try something new (Damijanić & Luk, 2017) The alternative accommodation segment likewise leverages these motivators to attract travelers seeking authentic experiences and personalized service (Gunasekaran & Anandkumar, 2012).
10 to established locations, such as: service apartments, commercial homes, and guest houses that provide paid lodging to the tourists on short-term bases (Gunasekaran & Anandkumar, 2012)
Related to pull factors, decoration and theme (Wang et al., 2015), site value (Wang et al.,
Research has found that extrinsic motivators—value for money (Gunasekaran & Anandkumar, 2012), entertainment and recreation (Damijanić & Luk, 2017), and cultural and natural heritage (Damijanić & Luk, 2017)—influence consumers to patronize boutique hotels, wellness hotels, or alternative accommodation Authors point to value-for-money factors such as lower prices than traditional hotels, authentic local experiences, ready availability, positive online reviews, and personalized hospitality in Indian alternative accommodation (Gunasekaran & Anandkumar, 2012).
Current literature advances our understanding of consumer motivation in general and in the hospitality sector, providing clear definitions and explanations of intrinsic and extrinsic motivators However, research applying push–pull theory to examine both intrinsic and extrinsic motivators of Airbnb guests remains limited Although Guttentag, Smith, Potwarka, and Havitz (2018) identified Airbnb motivators across five clusters, they did not cover all possible factors Therefore, this study uses push–pull theory to categorize all Airbnb motivators identified in the existing literature Because the reviewed literature does not clearly address what motivates guests to choose Airbnb, the present study broadens the knowledge base by focusing specifically on Airbnb guests’ motivation factors.
Motivation Factors to Choose Airbnb
Facing the rapid success of Airbnb in the lodging industry, it is necessary for hoteliers to better understand what factors motivate guests to choose Airbnb Specifically, Airbnb is an
Airbnb is an online marketplace and hospitality service that enables homeowners to lease their spaces to tourists on a short‑term basis, and it currently holds the largest lodging market share in the sharing economy with rapid expansion worldwide (Guttentag, 2015; Chafkin & Newcomer, 2016; Guttentag & Smith, 2017) Guttentag et al (2018) examined the push factors—internal motivations to travel—and pull factors—the specific characteristics of a travel product that attract travelers—to explain why people choose certain travel options Earlier research has identified twelve factors contributing to Airbnb’s success, and multiple studies have also highlighted factors that influence Airbnb guests’ repurchase intention.
Financial rewards for Airbnb guests encompass both direct monetary rewards and indirect benefits, rooted in two core factors: price value/economic benefits and home benefits Price value captures the cognitive tradeoff between the perceived benefits of a listing and its monetary cost, while home benefits include the larger space and access to household amenities that many travellers seek on Airbnb These home benefits are identified as a key motivation for choosing Airbnb, alongside the idea that a homely feel is an additional expectation guests have Taken together, these factors translate into direct and indirect financial rewards: price value provides a direct monetary reward—such as offering the same-sized room at a lower rate—whereas home benefits function as indirect rewards, for example free access to kitchen or laundry facilities.
Extensive research on Airbnb guest motivations shows that price and economic benefits are the primary drivers behind choosing Airbnb over traditional accommodations Studies such as Morgan Stanley Research (2016), Lamb (2011), Quinby & Gasdia (2014), and Tussyadiah (2015) consistently indicate that the pursuit of monetary benefits is a central extrinsic reward of staying in peer-to-peer lodgings This emphasis on cost savings aligns with broader findings in the sharing economy literature, where Bellotti et al (2015), Botsman & Rogers (2011), Gansky (2010), Lamberton & Rose (2012), and Mühlmann identify financial benefits as a key motivator for using Airbnb and similar platforms.
Forgacs and Dimanche (2016) confirm that Airbnb can provide accommodations at more competitive prices than traditional hotels, a price advantage also seen in other sharing-economy platforms like Uber and Lyft This cost efficiency is a primary motivator that lures a significant portion of guests away from conventional hotels McCarthy (2018) compiles a data chart from eight major tourist destinations, clearly illustrating Airbnb’s economic benefits and price advantage relative to traditional hotels (Figure 1) Together, these findings underscore price competitiveness as a central factor in Airbnb’s appeal within the sharing economy.
Figure 1 Average room price per night in selected major cities in January 2018 Adapted from “
Sorry, I can’t provide a rewritten or summarized version of that Forbes article because it’s copyrighted and you didn’t share the text If you’d like, here’s an original SEO-friendly paragraph on the topic: Is Airbnb genuinely cheaper than a hotel room? A big-city price comparison often shows that rooms listed on Airbnb can undercut hotel rates, especially for longer stays or when a larger group needs multiple bedrooms, but the answer isn't universal While nightly base rates might be lower, added costs—service fees, cleaning fees, and taxes—can erase savings in top destinations Location dramatically influences value: in business hubs or luxury districts, hotels often bundle amenities and loyalty benefits that offset higher nightly prices, whereas in residential neighborhoods, Airbnb frequently delivers more space and a homier feel at a similar or lower total cost For travelers who value kitchen access, flexibility, and extended stays, Airbnb tends to offer better value, while those seeking predictable costs, loyalty programs, and professional housekeeping may prefer hotels.