Transformation of Indian Economy: Digitalization, Globalization, and Organizational Dynamics
Articles

A Qualitative Study on the Economic Impact of Airbnb on Traditional Hotels in Kolkata, India

Sayanti Banerjee
Teaching Assist, Swami Vivekananda University,Barrackpore, 700121.

Published 2026-05-22

Keywords

  • Airbnb,
  • traditional hotels,
  • qualitative study,
  • Kolkata,
  • hospitality industry,
  • economic impact,
  • peer-to-peer accommodation,
  • tourism
  • ...More
    Less

How to Cite

Banerjee, Sayanti. “A Qualitative Study on the Economic Impact of Airbnb on Traditional Hotels in Kolkata, India”. Swami Vivekananda University Press, May 2026, pp. 48-57, https://swamivivekanandauniversitypress.com/index.php/svup/article/view/545.

Abstract

India’s tourism and hospitality sectors have been greatly influenced by the introduction of peer-to-peer accommodation systems like Airbnb. This research investigates the economic consequences of Airbnb on the ‘in the traditional hospitality industry of Kolkata which is a significant cultural and tourism center. With a conglomeration of budget, midrange, and luxury hotels, Kolkata offers an excellent context to study the interaction between traditional accommodation providers and newer lodging alternatives.

Focusing on a qualitative strategy, this research is grounded on semi-structured interviews conducted with 15 hospitality industry executives, such as general and marketing managers, as well as revenue leaders. These interviews bring to light the competitive disadvantages vulnerable and midrange hotels face because of Airbnb’s low-cost alternatives which lead to reduced occupancy and increased pricing pressures. Although luxury hotels are less affected, many of them have started to adopt customized offerings and newer tailored competitive approaches.

According to the interviewees, airline-associated guests are actively targeted by budget hotels through the application of dynamic pricing, digital engagement, and customized guest interaction to attract younger, experience-driven tourists. One of the most problematic points discussed is the absence of coherent competition rules: while operating hotels face strict legal and tax obligations, a good number of Airbnb hosts remain unregulated.

Hotel industry experts shared their views saying, in spite of the obstacles, Airbnb has a positive impact on the tourism economy of the city. The industry experts showed a willingness for peaceful cohabitation, assuming regulatory policies provide a balanced opportunity for all participants. Hotels are reshaping their image by emphasizing reliability, brand reputation, and service to peer-to-peer offerings.

This research contributes to the understanding of the implications of digital disruption in Kolkata’s hotel industry. It is directly useful for stakeholders and policymakers in the hospitality industry who wish to strategically respond to the disruptions posed by the platforms of the sharing economy.

DOI - https://doi.org/10.65525/SVUP.9788199651593.2025.48-57