Influence of peer-to-peer accommodation sharing platforms on competitiveness of star-rated hotels in Nairobi county, Kenya

Abstract

The rise of peer-to-peer accommodations has reshaped the traditional hotel industry sparking concerns about market fairness, safety and competitiveness. Despite the growing prevalence of P2P accommodation sharing platforms limited research has investigated their effects on the competitiveness of traditional hotels. Thus, the purpose of this study was to examine the influence of peer-to-peer accommodation sharing platforms on competitiveness of star-rated hotels in Nairobi County, Kenya. The specific objectives included: To investigate the impact of the cost of peer-to-peer accommodation sharing platforms on competitiveness of star-rated hotels; to determine the effects of social interaction of peer-to-peer accommodation sharing platforms on competitiveness of star-rated hotel; to examine the impact of environmental commitment of peer-to-peer accommodation sharing platforms on competitiveness of star-rated hotels; and to investigate the moderating influence of customer reviews on the relationship between peer-to-peer accommodation sharing platforms and competitiveness of star-rated hotels in Nairobi County. This study was guided by the Theory of Disruptive Innovation and Five forces framework and adopted a descriptive cross sectional survey design. The target population was made up of 288 top-two managers of both peer-to-peer accommodation and star-rated hotels in Nairobi County Kenya. The census method was used to collect data from peer-to-peer accommodation and star-rated hotels in Nairobi County Kenya. Structured questionnaires were used to collect data for this research. The data collected was analyzed using Statistical Package for Social Scientists Software (SPSS) version 25 and presented in tables. The reliability of the research instruments was tested using Cronbach’s Alpha at α ≥ 0.70. The study incorporated descriptive statistics and multiple linear regression analysis to predict the impact of P2P accommodation sharing platforms on competitiveness as well as the influence of customer reviews on the relationship between P2P accommodation sharing platforms and competitiveness. The study showed that social interaction were the highest predictors of competitiveness (β=0.24, p<0.05) compared to environmental commitment (β=0.18, p<0.05) and cost of peer-to-peer accommodation sharing platforms, (β=0.08, p<0.05). The moderating effect of customer review had positive coefficient therefore having an influence on P2P accommodation sharing platforms and competitiveness in star-rated hotels in Nairobi County, Kenya (β=0.09, P<0.05). In conclusion the study noted that there was a significant relationship between P2P accommodation sharing platforms and competitiveness of star-rated hotels. Thus starrated hotels in Nairobi County should monitor costs related to P2P accommodation sharing platforms, foster social interactions, adapt sustainable practices, and actively manage customer reviews so as to enhance competition. The study recommended that star-rated hotels managers should focus on optimizing cost strategies and enhancing social interactions to remain competitive, while also committing to environmental sustainability and effectively managing customer feedback, thus, boosting competitiveness.