Factors Influencing Generation Y to Choose AIRBNB

This study aims at identifying factors that influence Generation Y to choose Airbnb. The topic of this study is of great importance to understand the new trend of accommodation that is currently taking place in the hospitality industry worldwide known as Airbnb, its main target market is Generation Y. The popularity of Airbnb is on the rise and it has become the main competitor to the traditional hotel industry. This research has identified four factors – socio-economic, environmental, technological and media – that largely influence Generation Y while choosing Airbnb as their preferred accommodation. The research represents a framework to test the relationship between these factors and Generation Y decision to choose Airbnb. The data were collected in Malaysia, which is one of the most popular tourist destinations in Southeast Asia, from 200 respondents of different nationalities who intend to or have experienced staying with Airbnb. The data were collected through physical distribution of the questionnaire as well as through an online survey. SPSS version 21 was used to analyse the data. The findings suggest that the various factors identified have a significant influence on Generation Y decision while choosing Airbnb as their accommodation. This finding helps Airbnb maintain its target market by determining the key factors that influence Generation Y. The study also identifies technological and environmental factors that play an important role in the Generation Y decision to choose Airbnb.