Counteracting Disruption: Examining Hotel Strategies to Deter Short-Term Lease Market Entry

Abstract

The emergence of short-term lease platforms has disrupted the global tourism and hospitality sector, with implications not only for traditional hotels, but entire destinations. Despite numerous studies on the effects of short-term leases on hotel performance, limited research has sought to advance the conceptual understanding of local-level countermeasures employed by hotels. Consequently, this research critically examines the competitive entry barriers employed by incumbent hotels to deter short-term leases, with an emphasis on preemption and brand loyalty strategies. Using a panel analysis and zero-inflated multilevel Negative Binomial Regression, findings reveal that increasing the proportion of branded hotels effectively deters short-term lease entries, while quality concentration also reduces market entry rates. Findings articulate effective strategies for hotels and policymakers to protect market share and maintain community stability in the face of evolving sector dynamics. Future research should examine the diverse strategies traditional hospitality providers can leverage to counteract short-term lease market entry. Also available in Chinese. See Supplemental Material for details.