Disruptor Recognition and Market Value of Incumbent Firms: Airbnb and the Lodging Industry

Simone Bianco, Florian J. Zach, Manisha Singal

Research output: Journal article publicationJournal articleAcademic researchpeer-review

8 Citations (Scopus)

Abstract

Although Airbnb debuted in 2008, incumbent lodging firms did not fully recognize it as a legitimate competitor for several years. However, as Airbnb made inroads into the accommodation business, hotel firms and their investors started to take notice and to legitimize its disruptive role. In this paper, we investigate investors’ awareness of the disruptor Airbnb as a competitor of incumbent lodging firms. Specifically, we assess the effect of awareness on incumbent hotel management and hotel property owner firms. Employing an event study methodology, our analysis finds that Airbnb performance milestones negatively affect incumbents’ market value. This research contributes to our understanding of the role played by investors and financial analysts in shaping competitive markets by legitimizing an industry disruptor and by spurring competitive action among incumbent firms.

Original languageEnglish
Pages (from-to)84-104
Number of pages21
JournalJournal of Hospitality and Tourism Research
Volume48
Issue number1
Early online date3 Apr 2022
DOIs
Publication statusPublished - Jan 2024
Externally publishedYes

Keywords

  • Airbnb
  • awareness
  • competitor recognition
  • event analysis
  • stock market

ASJC Scopus subject areas

  • Education
  • Tourism, Leisure and Hospitality Management

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