Intensity of Rivalry: Case Study of Airbnb in Barcelona

Abstract

Despite the fact that networked-based companies are a relatively new phenomenon, these companies are rapidly expanding and gaining knowledge about the new trends in the hospitality sector and therefore, the impacts that these platforms have on different industries and destinations is being undeniable. The presented case study is intended to discover to which extent, Airbnb should or should not be considered a rival by the accommodation industry or firms in the city of Barcelona. The study is accomplished through the application of The Intensity of Rivalry Framework, developed by Mr. Shahedul Alam Khan which delimits the rival intensity among the firms in an industry. This delimitation of the rival intensity, through the investigation of different aspects of the accommodation industry will prove if Airbnb should be consider a threat to the other firms. An extended research on the Sharing Economy, Airbnb, the Accommodation Industry in the city of Barcelona and Market Rivalry is presented on this paper. Interviews to experts in the accommodation field and Airbnb are also presented. Using an empirical research method and a qualitative and phenomenological approach, this case study will determine the degree to which the platform should be considered a rival to the other accommodation players in the city of Barcelona. Although previous assumptions have been stated indicating that Airbnb should be considered a threat to other accommodation players, this paper discusses this matter in depth applying it to the city of Barcelona, showing unforeseen results.