CONTENTS

Introduction…………………………………………………….…………………...3

Overview of Literature...............................................................................................5

Statement of the Problem...........................................................................................7

Aim of the Project......................................................................................................8

Objectives of the Study..............................................................................................9

Reseach Questions.....................................................................................................9

Hypothesis.................................................................................................................9

Significance/ Contribution to the Discipline.............................................................10

Conceptual Framework.............................................................................................12

Research Methodology.............................................................................................14

Chapterization...........................................................................................................17

Timeline....................................................................................................................18

References.................................................................................................................19

1
Abstract

This research examines how the rapidly growing short-term rental (STR) market, represented by
platforms like Airbnb, affects the ability of traditional hotels to recruit and keep skilled
employees. As STRs become more popular, hotels face increased competition, potentially
impacting their hiring and retention strategies. The study investigates the effects of STRs on
factors such as the number of available jobs, salaries offered, and how satisfied hotel workers
are.

This study investigates why workforce patterns are changing in the hotel industry. It looks at
differences in pay, working conditions, opportunities for career advancement, and job security. It
also examines how the rise of short-term rentals (STRs) impacts how employees view job
stability and long-term career paths. The study interviews hotel managers, employees, and
industry professionals. It also analyzes employment data. By doing so, it aims to find strategies
that hotels use to reduce the impact of STRs on their workforce.

The findings of this will enhance our comprehension of how the growth of short-term rentals
(STRs) is changing the labor market in the hospitality sector. Additionally, it will offer advice on
how hotels can change their hiring and retention tactics to compete with STRs. This will aid in
ensuring a sustainable workforce in a very competitive environment.

Key Words – Short – Term Rentals (STRs), Employee Recruitment, Hotel Industry, Workforce
Dynamics, Retention, Hospitality Sector

2
1. INTRODUCTION

Introduction to the Study

The hospitality industry is facing major changes because of short-term rentals (STRs). STRs, like
Airbnb and Vrbo, are becoming more popular, which means they are taking away customers
from regular hotels. This study will look at how STRs affect how hotels hire and keep
employees. As consumer preferences change, hotels are having trouble finding and keeping good
employees.

Importance of the Study

It's important to consider the impact of short-term rentals (STRs) on hotel staffing because:
1. STRs have changed how the hotel industry operates. Guests have different expectations and
preferences now. As more people choose STRs, hotels might have fewer guests, which could
affect how they use their staff.
2. The hotel industry has always had problems with high employee turnover rates. It's important
to know what factors make the situation worse or better so that solutions can be found.

3. Due to the flexibility, perceived entrepreneurial opportunities, and potentially higher earning
potential, short-term rentals (STRs) are attracting talented workers away from traditional hotels.
This trend creates a major challenge for hotels that depend on consistent service, which is closely
tied to keeping employees satisfied and on the job. It is essential for hotel managers to recognize
the influence of STRs on the labor market within the industry in order to create successful
strategies for hiring and retaining staff in a market that is becoming more competitive.

Previous Research

Previous research has mainly examined how short-term rentals (STRs) impact hotel performance
measures like occupancy and revenue per room (RevPAR). While STRs can attract different
travelers and complement hotels, they can also be competition that makes it harder for hotels to

3
run smoothly. Studies have found that more STRs can hurt hotel occupancy and make it harder
to set prices. While research has explored the impact of vacation rentals (STRs) on housing
markets, there is a lack of focus on their influence on labor dynamics within the hotel industry.
However, how these changes affect hiring and keeping hotel staff is not well understood.

Limitations of Previous Research

Previous research has mainly focused on numerical measurements of success, overlooking the
subjective aspects of how employees experience STR growth. Furthermore, there is a gap in
understanding how the changing STR market conditions impact HR challenges within the
hospitality industry.

This research aims to investigate the impact of short-term rentals (STRs) on employee
recruitment and retention within the hotel industry. It is hypothesized that the emergence of
STRs has altered the job market, making it harder for hotels to secure and keep qualified staff,
especially for entry-level and middle management positions.

Research Problem and Hypothesis

This study investigates the impact of short-term rentals (STRs) on the hotel industry's ability to
hire and keep workers. It proposes that STRs have introduced new job market conditions,
making it harder for hotels to find and keep skilled employees, especially in lower- to mid-level
operational positions.

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2. OVERVIEW OF LITERATURE

The existing literature on short-term rentals (STRs) highlights a range of effects on the
hospitality industry, particularly concerning employee recruitment and retention, economic
implications, regulatory challenges, and consumer behavior. The following subtopics summarize
key findings and limitations from various studies.

1. Impact on Hotel Recruitment and Retention

Falk and Yang (2020) explore how STR regulations can stabilize labor markets for hotels,
suggesting that stricter regulations may enhance recruitment and retention. However, their study
is limited to specific regions, raising questions about broader applicability. Yeon and Song
(2020) discuss how STRs contribute to labor shortages in hotels, indicating that while property
owners benefit financially, hotels may struggle to maintain adequate staffing levels. This
qualitative analysis lacks quantitative metrics, which could provide a more comprehensive
understanding of employment impacts.

2. Economic Implications of STRs

Zou (2020) analyzes the economic effects of STRs, noting that they can drive up housing prices
and negatively impact hotel employee availability. This study relies on secondary data, which
may not reflect current market dynamics accurately. Dogru and Makara (2020) further examine
Airbnb's supply potential within the tourism sector, finding that increased accommodation
options enhance consumer choice but lack longitudinal data to assess long-term market effects.

3. Regulatory Responses to STRs

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Dinatale (2018) addresses various jurisdictions' regulatory responses to STRs, suggesting that
effective policies can mitigate negative impacts on housing markets. However, the absence of
longitudinal data limits the assessment of long-term community effects. Colomb and Tatia
(2023) emphasize the challenges posed by illegal STRs in urban areas, advocating for proactive
regulations but noting their focus on a limited number of case studies.

4. Perceptions of Stakeholders

Leshinsky and La (2018) investigate landlords' perceptions regarding enforcement mechanisms

for STRs, revealing feelings of inadequacy in support from existing regulations. This perspective
is narrow as it overlooks tenant or community viewpoints. Mhlanga (2020) highlights Airbnb's
innovative approach to employment but is limited by its geographical focus, potentially missing
broader trends in the hospitality market.

5. Community Impact

Muschter (2021) examines third-party impacts of STRs on local communities, finding both
economic benefits and disruptions such as noise in residential areas. The study's geographical
limitations may overlook quieter neighborhoods that experience different challenges compared to
tourist-heavy regions.

6. Urban Planning and Policy Integration

Gurran and Phibbs (2017) discuss how urban planners can address challenges posed by STRs
through strategic policy interventions. Their theoretical approach lacks empirical data supporting
proposed strategies, which could enhance practical applications.

7. Consumer Behavior and Preferences

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Mody (2017) focuses on consumer experiences with Airbnb versus traditional hotels, revealing a
preference for unique experiences offered by STRs. However, the study's limited demographic
diversity restricts its generalizability across different consumer segments. Yang and Martin
(2021) conduct a meta-analysis on competitive dynamics between Airbnb and traditional hotels,
concluding that while Airbnb poses a competitive threat, it can also complement hotel offerings
in certain markets.

3. STATEMENT OF THE PROBLEM

The growth of short-term rentals (STRs) has significantly impacted the hospitality industry,
presenting both opportunities and challenges. Platforms like Airbnb and Vrbo have increased
competition, affected occupancy rates and pricing strategies, and affected workforce recruitment
and retention.

However, there is a gap in understanding the effects of STRs on human resources within the
hotel sector. Existing studies primarily focus on quantitative metrics like revenue and occupancy,
neglecting qualitative aspects like employee experiences and job satisfaction. As hotels struggle
to attract and retain skilled labor, it is essential to explore how the proliferation of STRs may
exacerbate or mitigate these challenges.

This study aims to address this gap by examining hotel employees' perceptions of job security,
compensation, and overall satisfaction in relation to STRs in their market. By identifying the
specific ways STRs impact hotel staffing dynamics, this research can inform management
strategies and policy decisions within the hospitality industry. Understanding this relationship is
crucial for developing effective human resource practices that ensure a stable and satisfied
workforce in the face of evolving market conditions.

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4. AIM OF THE PROJECT

This project investigates the impact of short-term rentals (STRs) on hotel employee recruitment
and retention in the hospitality industry. It aims to understand how STRs affect job security,
employee satisfaction, and retention rates. Using a qualitative approach with surveys, the study
analyzes the relationship between STR market dynamics and challenges hotels face in
maintaining a stable workforce. The goal is to provide actionable recommendations for hotel
management to enhance recruitment strategies and improve employee retention in a competitive
landscape.

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5. OBJECTIVES OF THE STUDY

• To Identify the factors influencing hotel employees' job decisions amid the growth of
short-term rentals (STRs).
• To Analyze the influence of short-term rentals (STRs) on the levels of job satisfaction
and retention among employees in the hotel industry.
• To Develop Effective strategies for hotels to attract and retain employees in a competitive
market with short-term rentals (STRs)
• To Examine The ways in which hotels and short-term rentals (STRs) differ in how they
hire and manage employees.

6. RESEARCH QUESTIONS

1. How do short-term rentals (STRs) influence the recruitment and retention of employees
within the hotel industry?
2. What specific factors drive hotel employees to leave their jobs in favor of opportunities in
the STR sector?
3. How do hotels adapt their recruitment and retention strategies in response to the growing
competition from STRs?

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7. HYPOTHESIS

H1: The increased availability of vacation rentals through platforms like Airbnb has made it
harder for hotels to hire and keep workers, especially in lower-paying positions like
housekeepers and front desk staff.

H2: Hotel workers often quit their jobs to work in the short-term rental (STR) industry because
they believe STR jobs offer better pay and more control over their time.

H3: Hotels and short-term rentals (STRs) have distinct recruitment challenges because they offer
different perks and work environments.

H4: By modifying compensation packages, enhancing benefits, and providing clear career
advancement paths, hotels can boost employee retention, mitigating the impact of the increasing
competition from STRs (short-term rentals).

8. SIGNIFICANCE/ CONTRIBUTION TO THE DISCIPLINE

The increasing popularity of short-term rentals (STRs) has had a major impact on the traditional
hotel industry. However, we don't know much about how STRs affect the job market for people
who work in hotels. This study will look at how the growth of STRs affects hotels' ability to hire
and keep good employees. This is something that hasn't been studied much in the field of
hospitality management.

Key Literature and Existing Research:

Most current research has mainly concentrated on the financial and legal aspects of short-term
rentals (STRs). Airbnb's rise has disrupted conventional employment patterns in the hospitality
industry, leading to a shift toward more versatile work models, according to Mhlanga's 2020
study. The study emphasizes the importance of investigating the implications of these changes

10
for both employee satisfaction and the caliber of service provided by various lodging
establishments.

Dogru and Makara's 2020 study highlights Airbnb's role in expanding consumer options.
However, it lacks long-term data to evaluate market trends. This research aims to fill this gap by
investigating Airbnb's growth sustainability and its potential impact on the traditional hotel
industry.

Yang and Martin's (2021) study shows that Airbnb both challenges hotels as competitors and
complements them in certain markets. This suggests a complicated relationship between the two
lodging options, making it crucial to further explore consumer tastes and behaviors in different
settings.

Despite existing research, there is a lack of consideration for the increasing role of short-term
rental platforms (STRs) in the job market. This gap prevents us from fully comprehending how
these platforms impact employment patterns.

Gaps in the Literature:

This research focuses on understanding how short-term rentals (STRs) impact the hotel
industry's labor market, particularly in the areas of hiring and maintaining employees. Previous
studies have examined the broader economic effects of STRs, but there is a lack of research on
how they affect hotel staff at the individual level. This includes changes in employee morale,
opportunities for career advancement, and concerns about job security. Furthermore, the study
examines how hotels are adapting their hiring practices in response to the increased competition
from STRs.

Contribution to the Discipline:

This study aims to advance hospitality management by thoroughly examining the impact of
short-term rentals (STRs) on hotel human resources. It investigates how STRs affect recruitment,
employee retention, and satisfaction. The results will provide hotels with essential knowledge for
developing effective labor market strategies. Additionally, this research contributes to general
11
labor studies in hospitality, focusing on how alternative opportunities such as STRs shape job
fulfillment, turnover, and future career prospects.

This study's insights will be valuable to hotel managers, policymakers, and researchers studying
workforce management and labor economics in the hospitality industry. It will enhance our
knowledge of how STRs (short-term rentals) impact the hospitality industry from both a market
and labor standpoint, complementing existing research on their economic effects, and
contributing to a comprehensive understanding of their overall influence on the sector.

This research complements existing efforts in hospitality management programs that focus on
addressing industry challenges such as staff shortages, employee wellness, and the future of
work. Cornell University's School of Hotel Administration and UNLV have recognized the need
to find solutions to these issues. This study expands on these efforts by examining the influence
of STRs on strategies for hiring and retaining employees.

9. CONCEPTUAL FRAMEWORK

A [Prevalence of STRs] -->|Negative Impact| B [Employee Retention Rate]

A -->|Negative Impact| C [Recruitment Effectiveness]

D [Competitiveness of Employment Packages] -->|Positive Impact| B

D -->|Positive Impact| C

D -->|Positive Impact| E [Job Satisfaction Level]

This framework examines how the increasing presence of Short-Term Rentals (STRs) affects
hotels' ability to attract and keep their staff. The study considers the number of STRs in an area
and the attractiveness of hotel job packages in relation to employee retention rates, satisfaction
levels, and how well they can recruit new staff.

Independent Variables:

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 1. Prevalence of STRs – The quantity and accessibility of temporary lodging options located
within the proximity of the hotels.
Example: The rise of short-term rentals (STRs) in cities may hinder traditional hotels by
diverting customers, which could impact the hotel's capacity to retain a steady staff.
2. Competitiveness of employment packages – Hotels offer more alluring compensation,
benefits, and work environments compared to short-term rentals (STRs).
Example: If hotels provide employees with competitive salaries and benefits, it could
help them keep their staff even during periods when there is a lot of competition from
short-term rentals (STRs).

Dependent Variables:

1. Employee Retention Rate – Employee retention rate in the hotel industry, measured as
the proportion of staff remaining employed for a certain period.
Example: Having more short-term rental (STR) options could result in lower staff
retention rates for hotels. This is because hotel employees might feel less secure in their
jobs if they perceive that STRs are a threat to their employment stability.
2. Job Satisfaction Level – An indicator of hotel employees' satisfaction and well-being in
their roles and workplace atmosphere.
Example: Offering competitive perks and benefits in the hospitality industry may boost
employee morale and satisfaction, despite the increasing popularity of short-term rentals
(STRs) in the market.
3. Recruitment Effectiveness – How well hotels can hire new staff is often measured by
how many jobs they fill over a certain period.
Example: To attract top talent to hotels, organizations may consider strategies that make
working at a hotel more appealing than in similar roles in vacation rentals or other
management positions.

Relationships:

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 • High levels of short-term rentals (STRs) can worsen a company's ability to keep and hire
employees by making it harder to find and afford housing in the area where the company
is located.
• Offering competitive employment packages is believed to reduce negative impacts on
employees by increasing their satisfaction, which in turn leads to reduced turnover and
improved hiring success.

10. RESEARCH METHODOLOGY

1. Research Design:

This research will use quantitative methods to gather numerical data on employee
recruitment, retention, and the effects of short-term rentals (STRs) on hotel staff. It will
use a descriptive cross-sectional design, collecting data at a specific time to understand
the connections between STRs and hotel employee dynamics. Statistical tools will be
used to find correlations, patterns, and impacts on hotel workers.

2. Location of the Study

The research will take place in major cities where hotels and short-term rentals (STRs)
like Airbnb are prevalent. Prime tourist destinations in India, such as Mumbai, Delhi,
Bangalore, and Udaipur, are well-suited for the study due to their competitive hospitality
sectors and increasing number of STRs. Examining these locations will shed light on the
impact of STRs on local hotel workforces.

14
 3. Research Process:
- Step 1: Literature Review: We will look for key factors that affect how hotels hire and
keep employees by carefully reviewing what has already been written about STRs and
how they have affected the hospitality business.
- Step 2: Survey Design: Drawing on research findings, we will create a detailed
questionnaire to gather information from hotel staff, managers, and HR experts. This
survey will focus on: The difficulties faced in hiring new employees, The strategies used
to keep current employees, The level of job satisfaction among employees, The
competitive landscape presented by short-term rental companies.
- Step 3: Data Collection: Hotels in specific cities will receive surveys to gather
information about: How well they retain employees, Statistics on hiring employees, how
satisfied employees are, how their employment policies compare to those of STR.
- Step 4: Data Analysis: It will utilize statistical software such as SPSS or R to examine
the gathered data. This analysis aims to identify patterns (trends), assess relationships
(correlations), and determine the influence of STRs (short-term rentals) on the
interactions and relationships among hotel employees.
- Step 5: Interpretation and Reporting: The research results will be analyzed and
compiled into practical suggestions that will guide the research team in answering the
research questions and testing the hypothesis.

4. Target Population:

- Hotel Employees: Hotel staff members from various departments, including reception,
cleaning, and dining services, employed in multiple hotels within the specified urban areas.

- Hotel HR Professionals: Human Resources personnel in the hospitality industry, specifically

those dedicated to hiring and managing employees in hotels.

- Hotel Managers: Leaders responsible for managing operations and developing strategies to
attract and retain employees.

5. Sampling Technique:

In a study examining the effects of short-term rentals (STRs) on hiring and keeping hotel
employees, stratified sampling is a suitable method.

15
Stratified sampling divides a population into different groups (strata) based on common features.
Then, random samples are taken from each group. By doing this, the method makes sure that
each group has a fair share in the sample. This is especially helpful when researchers want to
look at how different parts of the population vary from one another.

In this regard, stratified sampling can be conducted where hotel employees are grouped by their
respective job categories such as front desk, housekeepers, managers, their years of work, or
location. Such measures enable the research to give a much deeper context on how STRs impact
recruitment and retention of specific employee categories as each of them is included in the
sample. This makes the results of the study more trustworthy and enables better analysis of the
problem being investigated.

6. Sample Size:

To find the ideal sample size for your study on how short-term rentals (STRs) affect hiring and
keeping hotel staff, you need to consider: - The total number of people being studied - How sure
you want to be about your results - How much you're willing to allow your results to be slightly
wrong - How different your sample groups are.

Determining Sample Size:

1. Total Population: Count the total number of hotel employees in the specific region or group
you're studying (e.g., 10,000 employees).

2. Desired Sample Size: Use a formula based on the desired level of certainty (confidence level)
and the allowable error margin (margin of error). For instance, if you want to be 95% confident
in your results and accept a 5% error margin, you can calculate the sample size using the
following formula:

N= Z2.p.(1-p)/ E2

Where:

• ZZ = Z-value (1.96 for 95% confidence)

• pp = estimated proportion of the population (commonly set at 0.5 for maximum
variability)
• EE = margin of error (0.05 for 5%)
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Plugging in these values:

n=(1.96)2⋅0.5⋅(1−0.5)(0.05)2≈384n= (0.05)2(1.96)2⋅0.5⋅ (1−0.5) ≈384

7. Research Instrument - We'll use a Structured Questionnaires to collect data. It will have: - Set
questions that can be answered with one choice Questions where you rank your response on a
scale, Questions where you choose multiple answers, The survey will gather numbers about:

- How many people hotels successfully hire?

- How many employees stay working at hotels and how many leave

- How happy employees are at hotels and why they might think about working somewhere else,
including short-term rentals?

- What hotels do to keep employees?

Expected outcome:

This Research aims to demonstrate how the surge in short-term rentals (STRs) has affected hotel
staff hiring and retention, especially in competitive city markets. The findings are anticipated to
show that STRs entice potential hotel employees by providing more adaptability and sometimes
even higher salaries. As a result, especially in entry- and mid-level roles, hotels might experience
increased difficulty in finding and keeping qualified employees.

The research will also focus on understanding the reasons why employees stay or leave the hotel
industry, with a focus on factors like job satisfaction, pay, and career advancement. Hotels that
offer competitive salaries, better perks, and clear paths for career growth are likely to keep more
employees, even as competition from short-term rentals intensifies.

17
This research will help hotel managers improve their hiring and employee retention strategies,
and it will also inform policymakers about the job market in the hospitality industry. This
information can lead to better practices for managing employees in the industry, which will help
it last longer.

11. CHAPTERIZATION

1. Introduction

2. Overview of Literature

3. Research Methodology

4. Result and Discussion

5. Conclusions and Recommendations

12. TIMELINE

Stages of Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-

research 24 24 24 24 24 24 25 25

Selection of
Topic

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 Data
Collection
from
Secondary
Sources

Literature
Review

Research
Methodolog
y
Plan

Selection of
Appropriate
Research
Techniques

Submissio
n of
Proposal

Collection
of
Primary Data

Analysis
and
Interpretatio
n of Data

19
 Submissio
n of Final
Paper

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