Our team recently presented their findings on peer-to-peer lodging at the Applied Business and Entrepreneurship Association International Conference in Kona, Hawaii.

Here are our findings:

Why Travelers Choose Peer-to-Peer Lodging: Key Insights for Hosts

Peer-to-peer lodging—think Airbnb and VRBO—has transformed the hospitality industry, offering travelers alternatives to traditional hotels. But what really drives guests to book a stranger’s home? Recent research by Lisa Andrus and colleagues reveals the most important factors and how hosts can leverage them.

1. The Rise of the Sharing Economy

Platforms like Airbnb and VRBO have made it easy for homeowners to rent out rooms or entire properties. This “sharing economy” is booming, with millions of listings worldwide. The appeal? More choices, competitive pricing, and unique experiences.

2. What Matters Most to Guests

The study surveyed over 300 travelers and found that the top factors influencing booking decisions are:

• Cost: Price remains the primary concern. Travelers want value, but not necessarily the cheapest option—just the best fit for their needs (e.g., families may prefer whole homes over hotel rooms).
• Location: When booking through peer-to-peer platforms, location is the most important variable (65% of respondents).
• Customer Ratings: Reviews and ratings are crucial (57%). Positive guest experiences boost visibility on booking platforms.
• Uniqueness: Unique property features attract attention, especially as platforms like Airbnb now highlight categories such as “Tiny Homes” and “Treehouses”.
• Amenities & Convenience: While important, these rank below cost, location, and ratings.

3. The Myth of Community & Social Media

Contrary to popular belief, most guests aren’t booking for a “subversive community experience” or because they saw a property on social media. Only 19% sought community immersion, and 25% were influenced by social media posts. While social influencers can help, hosts shouldn’t rely solely on these strategies.

4. The Evolving Host-Guest Relationship

Early peer-to-peer lodging emphasized personal connections and hospitality. Today, the experience is more professionalized, with less face-to-face interaction. Guests value predictability and efficiency over authenticity and communality.

5. Actionable Tips for Hosts

• Focus on Location and Guest Experience: Market your property’s location and ensure excellent guest experiences to boost ratings and visibility.
• Highlight Unique Features: If your property fits a unique category, showcase it—these listings attract more attention.
• Don’t Overemphasize Community: While some guests seek connection, most prioritize practical factors.
• Monitor Platform Fees: Be aware of how fees affect guest decisions and consider how your pricing compares across platforms.

6. Looking Ahead

The study suggests future research should explore how platform fees and rewards influence booking behavior. As the sharing economy grows, understanding these nuances will help hosts stay competitive.