The influence of reputation, price, trust and perceived value on guest booking intention on Airbnb in Malaysia

Abstract

The growing popularity of sharing economy accommodation such as Airbnb has gained the attention of both academicians and practitioners. The house owners have positively embraced it since it provides them the opportunity for extra income at relatively low cost. Also, it has attracted many customers to book their accommodation with Airbnb since it gives customers more flexibility regarding the choice of accommodation. Although extensive research has been carried out on tourists’ booking intention in the context of the tourism industry, to the researcher’s knowledge, there is a dearth of research that has distinctively looked into what leads tourists to book an accommodation on Airbnb. By considering the attribution theory, this study aims to examine the impact of both internal (price consciousness) and external (reputation) causes, on consumers’ trust in Airbnb and perceived value, and the subsequent booking intention. More particularly, the objectives of this study are (i) to assess the direct relationships between ‘reputation and trust’ and between ‘price consciousness and perceived value’; (ii) to examine the effect of trust and perceived value on guests’ booking intention; (iii) to test the mediating effect of trust and perceived value in the relationships between attributed causes and the subsequent guest booking intention. A Web-based survey was designed to collect the data from respondents in Malaysia, which yielded 311 complete and usable responses. Data collected were analysed using SPSS and PLS-SEM to test the proposed study hypotheses. The study findings revealed that all the hypotheses were supported and significant. Reputation exerts a positive effect on trust in Airbnb (H1), while trust in Airbnb predicts guest booking intention (H2). Also, price consciousness is positively related to consumers’ perceived value (H3), and perceived value positively predict guest booking intention (H4). Reputation exerts a positive and significant effect on guest booking intention (H5), and price consciousness is positively related to guest booking intention (H6). Trust in Airbnb is also mediates the relationship between reputation and guest booking intention (H7). Lastly, the perceived value mediates the relationship between price consciousness and guest booking intention (H8). This study is among the pioneers to consider the attribution theory to understand the drivers of guest booking intention on Airbnb. Moreover, this study provides a new perspective on how attributed internal (price consciousness) and external (reputation) causes may, directly and indirectly, influence guests’ booking intention on Airbnb. The findings of this study provide crucial implications for home rental industry players and academicians. The study offers a new perspective by linking attributed causes to book Airbnb in Malaysia. This study would be of interest to the Airbnb, home rental industry players, and tourism practitioners. In addition to that, this study will serve as a foundation for a suitable marketing tool for the Airbnb and other home rental practitioners to understand better causes that may drive guests’ booking intention. Airbnb and home rental industry players should place more emphasis on value packages that are reasonably priced or considered cheap to retain and attract more tourists. Also, an effective reputation system should be designed to communicate service offerings and benefits to build consumers’ trust in Airbnb, and subsequently lead to guest booking intention.