THE IMPACT OF AIRBNB ON TRADITIONAL HOTELS IN JEDDAH , SAUDI ARABIA

Abstract

This study explores the impact of Airbnb on traditional hotels in Jeddah, Saudi Arabia. With the rise of the sharing economy, platforms like Airbnb have introduced new competition to the hospitality sector. The research aims to understand how hotels are affected by Airbnb’s presence and how they are adapting to remain competitive.

The study is based on secondary data, including reports, articles, and case studies. No primary data such as interviews or surveys was collected. The research addresses four main questions: how traditional hotels are responding to Airbnb, the differences in guest experiences between Airbnb and hotels, Airbnb’s influence on the local economy and regulations, and how hotels can improve to compete more effectively.

Findings reveal that while Airbnb has not significantly impacted hotel occupancy rates in Jeddah, it offers competitive advantages such as lower prices, larger spaces, and a more local experience particularly appealing to families and younger travelers. Traditional hotels, on the other hand, maintain strengths in professional service, cleanliness, and safety, especially valued by business travelers.

The study concludes that hotels in Jeddah must adjust their strategies by enhancing their guest experience, incorporating local cultural elements, and using more flexible pricing models. Furthermore, implementing regulations for Airbnb could help level the playing field and support fair competition in the hospitality market.