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The effect of COVID-19 on the peer-to-peer rental market

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  • Catalina Llaneza Hesse
  • Josep Maria Raya Vílchez

Abstract

Based on fine-grained data on short-term accommodations for the city of Barcelona, we review the uneven impact of the pandemic on the short-term market, differentiating the supply by type of accommodation: single room versus entire flat/house, and type of host: professionalized versus non-professionalized. Using a fixed effects approach at property level, we estimate an average decrease in prices of 11.3% in entire flat/house and 4.7% in single rooms. For professionalized supply, the effect arrived to 13.6% and 9.8%, respectively. Finally, a growth in minimum stay was experienced by all types, but with a stronger effect on professionalized accommodations. We suggest that the supply adaptation strategy to accommodate the decreasing demand, especially by professionalized hosts, was to attract a more stable demand coupled with lower prices and longer stays. In addition, the type of short-term supply that experienced the strongest drop in occupancy was the non-professionalized segment, loosing around 41% of their bookings between April 2020 and January 2021.

Suggested Citation

  • Catalina Llaneza Hesse & Josep Maria Raya Vílchez, 2022. "The effect of COVID-19 on the peer-to-peer rental market," Tourism Economics, , vol. 28(1), pages 222-247, February.
    • Handle: RePEc:sae:toueco:v:28:y:2022:i:1:p:222-247
    DOI: 10.1177/13548166211044229
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    2. Ka Shing Cheung, 2024. "Airbnb pricing and term structure: A temporal analysis of omitted variable bias and repeat sales method as remedies," Tourism Economics, , vol. 30(5), pages 1330-1338, August.

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