Saving accommodation expenses
Price is the primary focus of customers when discussing perceived value of Airbnb. Customers regard the Airbnb service as a saving solution in different extents. Customers prefer Airbnb because their price is considerably low. Value firstly is low price (Zeithaml, 1998). Customers choose Airbnb because they think the price is rather low in comparison with hotels or hostels. Below is some of the feedback shared by customers.
“It is also cheaper” – Julia
“It was a reasonable price for a solo traveler. Even cheaper than hostel” – Teehee
“I can save a lot of money” – Cindy
“It’s safe and has a reasonable price” – Tiina
“Because I have low budget so I prefer Airbnb” – Nancy
Staying at Airbnb is saving, in a sense that they could get better quality or better condition (benefits) in the same or at the lower expense (cost). The economic value is defined by comparing between what customers get and what they give (Zeithaml, 1998). If benefits such as room condition, location, facilities are higher than what they sacrifice, in this context, money, customers think that Airbnb has economic value.
When comparing the price of Airbnb ot the price of hotels or hostels, customers found that they get more benefits at the same price when choosing Airbnb.
“You have the same services like in the hotel at lower price” – Jonas & Daisy
“Don’t have to pay much but get a place in good location and host is also nice” – Hana
“At this price, we could stay in a small room at a hotel but with Airbnb we could rent an entire apartment” – Bella
“With the same price as hostels but we could have our own room” – Tiina
“Airbnb offers a cheaper price for a private room” – Hana
Another unique feature of collaborative consumption is its disintermediation. Providers and users are connected directly via a virtual space. Moreover, the primary focus of collaborative consumption is the access to goods, meeting a basic need. Additional features, in the case of Airbnb, such as room cleaning, serving, 24-hour reception are eliminates. Guests pay for what they use and cover their needs. It is another way of regulating consumption.
“At regular hotels, it is more expensive because we have to pay for other services such as cleaning fee, service fee. At Airbnb, we only pay the room price for the owner” – Josh and Lyna
Guests in some cases could negotiate with hosts about the number of people staying and the price per night. This peer-to-peer relationship gives customers the flexibility to negotiate a better offer at a similar or lower price.
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“Room is for four people, but we travel in a group of three. We asked for discount, host agreed, and he sent us special offer” – Lily
Easy to book and stay at a private accommodation
Customers perceived the convenience of Airbnb, firstly, in the sense of its simplicity. Airbnb is an online booking site, available as an application on smart devices. Its friendly interface provides a simple way to search and book a room. Customers enter the date of their stay, city and preferred room type to find a suitable place. When they find a place, the booking process happens totally online. Customers make payment by credit card. Their Airbnb account can even save the payment information; so the next time customers, do not need to put in payment information, just book and click pay. The whole searching and booking process happens in a few steps online. The confirmation is sent directly to travelers, when hosts approve the stay, and the confirmation stored on their smart devices. Travelers could easily find a place to stay wherever they visit. It makes traveling more comfortable and less time consuming.
“The system in place is really easy to try”– Julia
“I have the application on the phone. I can just choose the date and the city, and I can see the map, I can see the price, all the things directly and the date available then I can communicate with them. If it’s fine, then I just book directly... The payment is very convenient’ – Lara ‘It is easy for me to book a room. I can use my Facebook account to sign in very quickly. The user interface is simple” – Peter
The booking procedure is simple. Guests can book and stay without filling any paperwork. Deposits are not required for guests preferring a long-term stay; customers can stay as long as they wish or prolong their stay without any obligation or contract.
“In some cities, I want to stay longer, but I don’t want the contract. I just want to stay in Airbnb for a month; I can just book and stay” – Lara
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“I login to Airbnb and send a request on how long I would like to stay. The host then sends his approval, and I pay. Payment is made by credit card. That’s all” – Peter
Moreover, Airbnb is a convenient solution for customers as a tour planning tool. When they enter a city name, there is an Airbnb map showing the different locations of hosts. Customers follow the Airbnb offerings on the maps to plan their trips. Hosts in a special location promote their offerings as a unique experience for customers. Travelers can find something new without spending too much time for searching information.
“It is more convenient. You could choose where you want to go; Airbnb hosts will appear on the maps around, and you can choose wherever you want to go. There are Airbnb hosts everywhere” – Jonas & Daisy
Customers find Airbnb convenient and flexible. It is a peer-to-peer relationship so customers can freely discuss and negotiate with hosts. The interaction between hosts and guests are not strictly governed by standards or formal rules. Collaboratively they could arrange, such as check-in, check out time, and the number of guests.
“I could discuss the time of check-in and check-out with hosts”– Tiina
“Some places say a room is for five people, but we could stay six once hosts agree” – Tiina
Besides, the perceived functional value of Airbnb, unique features is a selling point of this collaborative consumption model. Customers wanting unique features have additional benefits in addition to the use of a room. The majority of posting rooms have a kitchen or other amenities such as laundry room, parking bay, and living room. Customers pay for using the room, and in some cases, this grants them access to other facilities. In most of the cases, hosts allow guests to use all facilities without an extra fee. Customers view these extra features in an economic light, for instance, the ability cook at home to save them money on eating out.
“We can use the kitchen and cook at home; it saves money”– Josh and Lyna
“I can cook and freely use all facilities in the house” – Lily
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Lastly, Airbnb is convenient because of the availability of hosts. Hosts act as helpers, information providers, and local advisers. Before guests arrive, hosts are an essential information source that customers can use. Guests could have various questions before their trip and can ask hosts to explain and provide information. Hosts could also act on behalf of customers to book a tour or deal at a local price. Airbnb does not regulate hosts’ behaviors toward guests. However, with sincerity and kindness, hosts offer different types of help to support visitors to make their trips convenient. Hosts can provide additional services such as airport transfers (for free or charging a small fee), and local information which travelers could not get from travel guides. With the help of hosts, the customer could have a valuable understanding of the destination similar to that of residents.
“When I am on traveling, I do not know anything about that place and have tons of questions. I could ask the host about everything I am concerned about” – Anna
“Almost end of my 2-month travel. So I was exhausted, and my plan changed, so I went to Madrid and stayed there longer than I planned. So I didn't have any idea of the city, how to kill the time. So I decided to ask for local's help, so I chose Airbnb” – Teehee
“Host advises me on tour planning and deal good price for us” – Anna
“I was picked up by the host from and to Railway station at no cost” – Kimmy
“The host helps me with many things, I hardly get lost when I use Airbnb” – Hana
“In case of emergency, we still have contact of host to rely on” – Nancy
“The host lends us their VIP card so we could get a discount in cafe and restaurants. They show us where to eat. They are incredibly nice” – Anna
“The host helps me to make a membership card so I could buy seafood at 25-50% discount” – Tiina
Feeling of being home
Staying at Airbnb is unique because of its homey atmosphere. Airbnb can provide a space in a home, where the hosts currently live, ensuring it is furnished and has cooking facilities. Customers can have a pleasant stay and do what they normally do at home. The Airbnb accommodation is similar to a real home, for guests, rather than renting a place or staying in a hotel despite the fact that customers are renting the place.
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“When you live at home, sometimes you can use all the kitchen things” – Lara
“There is one room locked in the house; we could freely use all other facilities. It is so nice! There are enough bedrooms for the 5 of us; we also have a dining table, a kitchen, a piano in living room and other instruments” – Tiina
Besides, staying at Airbnb offers customers the sense of ownership. The feeling when living in a house is more personal and more comfortable. Customers could follow their daily routine even though they are on traveling. Airbnb provides travelers with a feeling of being at their home rather than renting a room for one or two nights.
“You feel more like home where everything is yours than at a hotel where you just rent it” – Nancy
“You just like staying your home so. Basically what we did: we cooked dinner, watched some TV and sat on the sofa” – Cindy
From a customer perspective, home is associated with safety, relaxation, and comfort. When customers stay in other people’s places, they could have the feeling of being home. As a result, customers feel safe and comfortable.
“When I stay at someone’s home, it makes me feel really secure, and makes me feel closer to the city that I am traveling” – Lara
“Sometimes when I travel alone, it’s better to stay in Airbnb I feel safer” – Lara
“We travel in groups and rent an entire house. We can leave anything at home even our passports. We can totally rest assured” – Tiina
“I want to stay at Airbnb place because I like its homey atmosphere” – Tiina.
Besides, the Airbnb platform encourages mutual trust between people. Airbnb plays the role of a third party between hosts and travelers. Airbnb allows hosts to upload information about their place on Airbnb website so that customers can use this information to judge the situation and decide their bookings. Customers make payment, in advance, into an Airbnb account. Airbnb facilities the transfer of payment after the guests stayed. Airbnb, as a facilitator, connects hosts and customers and helps build trust. Sharing is an instinct motive of human beings (Smolka & Hienerth, 2014). Researchers recognize the prevention of sharing and kindness as of lack of trust. Airbnb’s transaction mechanism encourages mutual trust between strangers and provides more credibility for both parties to be more open and trustworthy. From a customers’ point of view, this mutual trust helps them gain social engagement, with the host, and progress further within a new social circle in the places they stay. In order words, the collaborative consumption system has promoted the connection and interaction in the community (Piscicelli et al., 2015).
“I even get to know some people in the village. They invited us to their social circle because they know my host” – Tomas
“There is warm engagement between people. Hosts are willing to sit down and share about their opinion upon the place, the culture” – Carol
Hosts play an essential role in building an engaging environment at Airbnb. Customers feel welcomed in a new location by total strangers
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