Impact of Peer-to-Peer Accommodation Platforms on the Competitiveness of Star-Rated Hotels in Nairobi County, Kenya

Abstract

The hotel industry has been reshaped by peer-to-peer (P2P) accommodation platforms, raising concerns about fairness, safety, and market dynamics, yet limited research exists on their impact. This study aimed to examine how P2P accommodation sharing platforms influence the competitiveness of star-rated hotels in Nairobi County, Kenya. The specific objectives included investigating the impact of P2P platform costs, social interaction, and environmental commitment on hotel competitiveness, as well as the moderating role of customer reviews. Guided by the Theory of Disruptive Innovation and Five Forces, a descriptive cross-sectional survey design was used in the study. 288 senior managers from Nairobi County star-rated hotels and P2P accommodation made up the target population. Through census sampling, 288 managers from 53 star-rated hotels and 91 P2P lodgings were selected. Structured questionnaires were used to gather data, and Cronbach alpha was used to assess reliability. Multiple linear regression and descriptive statistics were used to analyze the data. The results indicated that the best predictor of competitiveness was social contact, followed by cost and environmental commitment. Customer reviews positively moderated the relationship between P2P platforms and hotel competitiveness. In conclusion, the study found a significant relationship between P2P accommodation sharing platforms and hotel competitiveness, recommending that star-rated hotels monitor costs, foster social interactions, adopt sustainable practices, and manage customer feedback to remain competitive.

Keywords: Peer-to-Peer Accommodation, Cost, Social Interaction, Environmental Commitment, Star-Rated Hotels, Competitiveness

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