The sharing economy is changing the landscape of the travel and hospitality industry. The most prominent form of sharing economy in hospitality is peer-to-peer (P2P) accommodation. While it has been found to benefit tourists, there is evidence of increasing consumer dissatisfaction toward P2P accommodation, which may result in negative post-purchase behaviours. Even through hospitality research has paid more attention to P2P accommodation, few have investigated consumer behaviour in response to service failure in a sharing system. Thus, adopting an explanatory sequential mixed-methods in the first stage and a with-in subject design in the second stage, this study aims to explore why consumers decide not to continue using P2P accommodation and propose a conceptual framework to identify the major service encounters and service recovery strategies. This study will also examine how service failures are associated with customers’ repurchase intention and recommend how to turn the insights into theoretical and managerial implications.