IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/109333.html
   My bibliography  Save this paper

Airbnb and hotels during COVID-19: different strategies to survive

Author

Listed:
  • Gyódi, Kristóf

Abstract

Purpose: The purpose of this paper is to examine the impact of the COVID-19 pandemic on the traditional hotel industry and Airbnb in nine major European cities. The author examines differences between the two business models and analyses various strategies of Airbnb hosts to cope with the crisis. Design/methodology/approach: A detailed empirical analysis is presented based on data from STR and Inside Airbnb for the period January 2018–September 2020. To assess the impact of the pandemic on the hotel industry, year-to-year changes in various performance metrics are presented. The author also investigates the impact of the pandemic on Airbnb prices with panel data regression analysis. Using text-mining methods, signs for new use-cases are explored, including renting flats for home-office or quarantine. Findings: The results support that Airbnb supply is more flexible. While hotel supply quickly returned to a level close to 2019, the average number of Airbnb listings was lower by more than 15%. Furthermore, the price analysis showed that Airbnb rates decreased more moderately than hotel prices. These findings suggest that a significant share of hosts pivoted from short-term accommodation provision and used their property differently, e.g. rented on a long-term basis. The analysis of listing characteristics revealed that the role of longer stays increased; however, the results do not support a shift towards advertising listings for home-office or quarantine purposes. Originality/value: This paper presents the impact of the pandemic on the hospitality sector in a wide sample of European cities, explores the adjustment of hotels and Airbnb and provides new evidence on the differences between the business models.

Suggested Citation

  • Gyódi, Kristóf, 2021. "Airbnb and hotels during COVID-19: different strategies to survive," MPRA Paper 109333, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:109333
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/109333/1/MPRA_paper_109333.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Liran Einav & Chiara Farronato & Jonathan Levin, 2016. "Peer-to-Peer Markets," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 615-635, October.
    2. Garcia-López, Miquel-Àngel & Jofre-Monseny, Jordi & Martínez-Mazza, Rodrigo & Segú, Mariona, 2020. "Do short-term rental platforms affect housing markets? Evidence from Airbnb in Barcelona," Journal of Urban Economics, Elsevier, vol. 119(C).
    3. Horn, Keren & Merante, Mark, 2017. "Is home sharing driving up rents? Evidence from Airbnb in Boston," Journal of Housing Economics, Elsevier, vol. 38(C), pages 14-24.
    4. Marcus Keogh-Brown & Richard Smith & John Edmunds & Philippe Beutels, 2010. "The macroeconomic impact of pandemic influenza: estimates from models of the United Kingdom, France, Belgium and The Netherlands," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 11(6), pages 543-554, December.
    5. Robbin Deboosere & Danielle Jane Kerrigan & David Wachsmuth & Ahmed El-Geneidy, 2019. "Location, location and professionalization: a multilevel hedonic analysis of Airbnb listing prices and revenue," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 6(1), pages 143-156, January.
    6. Lawani, Abdelaziz & Reed, Michael R. & Mark, Tyler & Zheng, Yuqing, 2019. "Reviews and price on online platforms: Evidence from sentiment analysis of Airbnb reviews in Boston," Regional Science and Urban Economics, Elsevier, vol. 75(C), pages 22-34.
    7. Chiara Farronato & Andrey Fradkin, 2018. "The Welfare Effects of Peer Entry in the Accommodation Market: The Case of Airbnb," NBER Working Papers 24361, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. E. Guglielminetti & M. Loberto & A. Mistretta, 2023. "The impact of COVID-19 on the European short-term rental market," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(3), pages 585-623, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tedds, Lindsay M. & Cameron, Anna & Khanal, Mukesh & Crisan, Daria, 2021. "Why Existing Regulatory Frameworks Fail in the Short-term Rental Market: Exploring the Role of Regulatory Fractures," MPRA Paper 106712, University Library of Munich, Germany.
    2. Kyle Barron & Edward Kung & Davide Proserpio, 2021. "The Effect of Home-Sharing on House Prices and Rents: Evidence from Airbnb," Marketing Science, INFORMS, vol. 40(1), pages 23-47, January.
    3. Edward Kung, 2020. "Innovation and Entrepreneurship in Housing," NBER Working Papers 26886, National Bureau of Economic Research, Inc.
    4. Wei Chen & Zaiyan Wei & Karen Xie, 2022. "The Battle for Homes: How Does Home Sharing Disrupt Local Residential Markets?," Management Science, INFORMS, vol. 68(12), pages 8589-8612, December.
    5. Maximilian Schäfer & Kevin Ducbao Tran, 2020. "Airbnb, Hotels, and Localized Competition," Discussion Papers of DIW Berlin 1889, DIW Berlin, German Institute for Economic Research.
    6. Edward Kung, 2020. "Innovation and Entrepreneurship in Housing," NBER Chapters, in: The Role of Innovation and Entrepreneurship in Economic Growth, pages 499-533, National Bureau of Economic Research, Inc.
    7. Morales-Alonso, Gustavo & Núñez, Yilsy M., 2022. "Dragging on multilisting: The reason why home-sharing platforms make long-term rental prices increase and how to fix it," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    8. Matthias Wrede, 2022. "How Short-Term Rentals are Changing the Neighborhood," International Regional Science Review, , vol. 45(4), pages 417-443, July.
    9. Xu, Minhong & Xu, Yilan, 2021. "What happens when Airbnb comes to the neighborhood: The impact of home-sharing on neighborhood investment," Regional Science and Urban Economics, Elsevier, vol. 88(C).
    10. Cong Liang & Matthew Chi Hei Yeung & Alan Kai Ming Au, 2022. "The impact of Airbnb on housing affordability: Evidence from Hong Kong," Environment and Planning B, , vol. 49(3), pages 1048-1066, March.
    11. Benítez-Aurioles, Beatriz & Tussyadiah, Iis, 2021. "What Airbnb does to the housing market," Annals of Tourism Research, Elsevier, vol. 90(C).
    12. Lauriane Belloy, 2022. "Short-term rental revenues after the lockdown : An advantage for natural areas but always in dense rental spaces," Working papers of Transitions Energétiques et Environnementales (TREE) hal-03671537, HAL.
    13. Bricongne, Jean-Charles & Meunier, Baptiste & Pouget, Sylvain, 2023. "Web-scraping housing prices in real-time: The Covid-19 crisis in the UK," Journal of Housing Economics, Elsevier, vol. 59(PB).
    14. He, Jiaxiu & Li, Bingqing & Wang, Xin (Shane), 2023. "Image features and demand in the sharing economy: A study of Airbnb," International Journal of Research in Marketing, Elsevier, vol. 40(4), pages 760-780.
    15. Ho, Shirley J. & Chang, Hung-Wei, 2022. "Impacts of sharing business on production, sales, and rental markets," International Journal of Production Economics, Elsevier, vol. 248(C).
    16. Thackway, William & Ng, Matthew Kok Ming & Lee, Chyi Lin & Shi, Vivien & Pettit, Christopher, 2021. "Spatial Variability of the ‘Airbnb Effect’: A Spatially Explicit Analysis of Airbnb's impact on Housing Prices in Sydney," SocArXiv cw2a9, Center for Open Science.
    17. Shijie Sun & Shengyue Zhang & Xingjian Wang, 2021. "Characteristics and influencing factors of Airbnb spatial distribution in China’s rapid urbanization process: A case study of Nanjing," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-19, March.
    18. Erik Brynjolfsson & Xiang Hui & Meng Liu, 2019. "Does Machine Translation Affect International Trade? Evidence from a Large Digital Platform," Management Science, INFORMS, vol. 65(12), pages 5449-5460, December.
    19. Reichle, Philipp & Fidrmuc, Jarko & Reck, Fabian, 2023. "The sharing economy and housing markets in selected European cities," Journal of Housing Economics, Elsevier, vol. 60(C).
    20. Agustin Cocola-Gant & Angela Hof & Christian Smigiel & Ismael Yrigoy, 2021. "Short-term rentals as a new urban frontier – evidence from European cities," Environment and Planning A, , vol. 53(7), pages 1601-1608, October.

    More about this item

    Keywords

    Tourism; Airbnb; Text-mining; COVID;
    All these keywords.

    JEL classification:

    • L8 - Industrial Organization - - Industry Studies: Services

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:109333. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.