IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v25y2019i8p1150-1166.html
   My bibliography  Save this article

Spatial price dependencies between the traditional accommodation sector and the sharing economy

Author

Listed:
  • Irem Önder

    (MODUL University Vienna, Austria)

  • Christian Weismayer

    (MODUL University Vienna, Austria)

  • Ulrich Gunter

    (MODUL University Vienna, Austria)

Abstract

The emergence of peer-to-peer (P2P) accommodation (e.g. Airbnb) has steadily increased the pressure on the traditional accommodation sector. Although Airbnb listings are perceived as being more affordable than hotels, this has not yet been conclusively demonstrated. Therefore, the aim of this study is to investigate whether significant price dependencies exist between the Airbnb and traditional accommodation sectors and to analyze the underlying pricing strategies. For this purpose, the Estonian capital city of Tallinn is used as a case example. Airbnb data, prices and locations of hotels in Tallinn, as well as spatial information such as distance to points of interest (POIs), and so on, are used in hedonic price regression models. The results show that Airbnb pricing positively depends on characteristics of the listing and the number of POIs within an optimal 650 m radius, which is obtained from a simulation study. Also, prices of hotels and of other Airbnb listings within the same radius positively impact Airbnb listing prices. Finally, Airbnb accommodations are shown to indeed be the more affordable alternative.

Suggested Citation

  • Irem Önder & Christian Weismayer & Ulrich Gunter, 2019. "Spatial price dependencies between the traditional accommodation sector and the sharing economy," Tourism Economics, , vol. 25(8), pages 1150-1166, December.
    • Handle: RePEc:sae:toueco:v:25:y:2019:i:8:p:1150-1166
    DOI: 10.1177/1354816618805860
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1354816618805860
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1354816618805860?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ert, Eyal & Fleischer, Aliza & Magen, Nathan, 2016. "Trust and reputation in the sharing economy: The role of personal photos in Airbnb," Tourism Management, Elsevier, vol. 55(C), pages 62-73.
    2. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    3. Gutiérrez, Javier & García-Palomares, Juan Carlos & Romanillos, Gustavo & Salas-Olmedo, María Henar, 2017. "The eruption of Airbnb in tourist cities: Comparing spatial patterns of hotels and peer-to-peer accommodation in Barcelona," Tourism Management, Elsevier, vol. 62(C), pages 278-291.
    4. J.M. Espinet & M. Saez & G. Coenders & M. FluviÃ, 2003. "Effect on Prices of the Attributes of Holiday Hotels: A Hedonic Prices Approach," Tourism Economics, , vol. 9(2), pages 165-177, June.
    5. Adamiak, Czesław, 2018. "Mapping Airbnb supply in European cities," Annals of Tourism Research, Elsevier, vol. 71(C), pages 67-71.
    6. Ching-Fu Chen & R. Rothschild, 2010. "An Application of Hedonic Pricing Analysis to the Case of Hotel Rooms in Taipei," Tourism Economics, , vol. 16(3), pages 685-694, September.
    7. Iis P. Tussyadiah, 2015. "An Exploratory Study on Drivers and Deterrents of Collaborative Consumption in Travel," Springer Books, in: Iis Tussyadiah & Alessandro Inversini (ed.), Information and Communication Technologies in Tourism 2015, edition 127, pages 817-830, Springer.
    8. Ulrich Gunter & Irem Önder, 2018. "Determinants of Airbnb demand in Vienna and their implications for the traditional accommodation industry," Tourism Economics, , vol. 24(3), pages 270-293, May.
    9. Acquier, Aurélien & Daudigeos, Thibault & Pinkse, Jonatan, 2017. "Promises and paradoxes of the sharing economy: An organizing framework," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 1-10.
    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. Giulia Contu & Luca Frigau & Claudio Conversano, 2023. "Price indicators for Airbnb accommodations," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(5), pages 4779-4802, October.
    2. Lim, Weng Marc & Yap, Sheau-Fen & Makkar, Marian, 2021. "Home sharing in marketing and tourism at a tipping point: What do we know, how do we know, and where should we be heading?," Journal of Business Research, Elsevier, vol. 122(C), pages 534-566.
    3. Yuting Chen & Rong Zhang & Bin Liu, 2021. "Fixed, flexible, and dynamics pricing decisions of Airbnb mode with social learning," Tourism Economics, , vol. 27(5), pages 893-914, August.
    4. Chunfang Zhao & Yingliang Wu & Yunfeng Chen & Guohua Chen, 2023. "Multiscale Effects of Hedonic Attributes on Airbnb Listing Prices Based on MGWR: A Case Study of Beijing, China," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    5. Türk, Umut & Östh, John & Kourtit, Karima & Nijkamp, Peter, 2021. "The path of least resistance explaining tourist mobility patterns in destination areas using Airbnb data," Journal of Transport Geography, Elsevier, vol. 94(C).
    6. Lee, Yong-Jin Alex & Jang, Seongsoo & Kim, Jinwon, 2020. "Tourism clusters and peer-to-peer accommodation," Annals of Tourism Research, Elsevier, vol. 83(C).
    7. Shohei Kurata & Yasuo Ohe, 2020. "Competitive Structure of Accommodations in a Traditional Japanese Hot Springs Tourism Area," Sustainability, MDPI, vol. 12(7), pages 1-15, April.
    8. Juan L Eugenio-Martin & José M Cazorla-Artiles & Christian González-Martel, 2019. "On the determinants of Airbnb location and its spatial distribution," Tourism Economics, , vol. 25(8), pages 1224-1244, December.
    9. Bozana Zekan & Ulrich Gunter, 2022. "Zooming into Airbnb listings of European cities: Further investigation of the sector’s competitiveness," Tourism Economics, , vol. 28(3), pages 772-794, May.
    10. Josep Lladós-Masllorens & Antoni Meseguer-Artola & Inma Rodríguez-Ardura, 2020. "Understanding Peer-to-Peer, Two-Sided Digital Marketplaces: Pricing Lessons from Airbnb in Barcelona," Sustainability, MDPI, vol. 12(13), pages 1-19, June.
    11. Sainaghi, Ruggero & Chica-Olmo, Jorge, 2022. "The effects of location before and during COVID-19," Annals of Tourism Research, Elsevier, vol. 96(C).

    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. Bozana Zekan & Irem Önder & Ulrich Gunter, 2019. "Benchmarking of Airbnb listings: How competitive is the sharing economy sector of European cities?," Tourism Economics, , vol. 25(7), pages 1029-1046, November.
    2. Insu Hong & Changsok Yoo, 2020. "Analyzing Spatial Variance of Airbnb Pricing Determinants Using Multiscale GWR Approach," Sustainability, MDPI, vol. 12(11), pages 1-18, June.
    3. Dolnicar, Sara, 2019. "A review of research into paid online peer-to-peer accommodation," Annals of Tourism Research, Elsevier, vol. 75(C), pages 248-264.
    4. Augusto Voltes-Dorta & Federico Inchausti-Sintes, 2021. "The spatial and quality dimensions of Airbnb markets," Tourism Economics, , vol. 27(4), pages 688-702, June.
    5. Yifei Jiang & Honglei Zhang & Xianting Cao & Ge Wei & Yang Yang, 2023. "How to better incorporate geographic variation in Airbnb price modeling?," Tourism Economics, , vol. 29(5), pages 1181-1203, August.
    6. Juan Luis Jiménez & Armando Ortuño & Jorge V. Pérez-Rodríguez, 2022. "How does AirBnb affect local Spanish tourism markets?," Empirical Economics, Springer, vol. 62(5), pages 2515-2545, May.
    7. Chunfang Zhao & Yingliang Wu & Yunfeng Chen & Guohua Chen, 2023. "Multiscale Effects of Hedonic Attributes on Airbnb Listing Prices Based on MGWR: A Case Study of Beijing, China," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    8. Ante Mandić & Elza Jurun, 2018. "The Determinants of Small and Family Owned Hotel Room Rates," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 11(2), pages 17-22, September.
    9. Loïc Lévi & Jean Jacques Nowak & Sylvain Petit & Hakim Hammadou, 2022. "Industrial legacy and hotel pricing: An application of spatial hedonic pricing analysis in Nord-Pas-de-Calais, France," Tourism Economics, , vol. 28(4), pages 870-898, June.
    10. Kim, Jinwon & Jang, Seongsoo & Kang, Sanghoon & Kim, SeungHyun (James), 2020. "Why are hotel room prices different? Exploring spatially varying relationships between room price and hotel attributes," Journal of Business Research, Elsevier, vol. 107(C), pages 118-129.
    11. Natalia Porto & Manuela Cerimelo & Iván Albina & Juan Luis Schiavonni & Francisco Pizzi, 2020. "Atributos, puntuacion y precios hedonicos en la Provincia de Buenos Aires y CABA: un analisis basado en Booking y Airbnb," Asociación Argentina de Economía Política: Working Papers 4392, Asociación Argentina de Economía Política.
    12. Stephen J Conroy & Nicholas Toma & Gregory P Gibson, 2020. "The effect of the Las Vegas Strip on hotel prices: A hedonic approach," Tourism Economics, , vol. 26(4), pages 622-639, June.
    13. Lim, Weng Marc & Yap, Sheau-Fen & Makkar, Marian, 2021. "Home sharing in marketing and tourism at a tipping point: What do we know, how do we know, and where should we be heading?," Journal of Business Research, Elsevier, vol. 122(C), pages 534-566.
    14. Beatriz Benítez-Aurioles, 2022. "The exhaustion of the herding effect in peer-to-peer accommodation," Tourism Economics, , vol. 28(1), pages 27-43, February.
    15. Lee, Yong-Jin Alex & Jang, Seongsoo & Kim, Jinwon, 2020. "Tourism clusters and peer-to-peer accommodation," Annals of Tourism Research, Elsevier, vol. 83(C).
    16. Latinopoulos, Dionysis, 2018. "Using a spatial hedonic analysis to evaluate the effect of sea view on hotel prices," Tourism Management, Elsevier, vol. 65(C), pages 87-99.
    17. Amanda Belarmino & Tevfik Demirciftci & Liheng Zhang, 2021. "Online reviews and travel magazine awards: their influence on willingness-to-pay," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(4), pages 436-445, August.
    18. Bozana Zekan & Ulrich Gunter, 2022. "Zooming into Airbnb listings of European cities: Further investigation of the sector’s competitiveness," Tourism Economics, , vol. 28(3), pages 772-794, May.
    19. V. Raul Perez-Sanchez & Leticia Serrano-Estrada & Pablo Marti & Raul-Tomas Mora-Garcia, 2018. "The What, Where, and Why of Airbnb Price Determinants," Sustainability, MDPI, vol. 10(12), pages 1-31, December.
    20. Sainaghi, Ruggero & Baggio, Rodolfo, 2020. "Substitution threat between Airbnb and hotels: Myth or reality?," Annals of Tourism Research, Elsevier, vol. 83(C).

    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:sae:toueco:v:25:y:2019:i:8:p:1150-1166. 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: SAGE Publications (email available below). General contact details of provider: .

    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.