Exploring Relative Resilience of Airbnb and Hotel Industry to Risks and External Shocks

Keywords

Airbnb; external shocks; hotel; resilience; Vacation home

Abstract

Using Airbnb and hotel data from the Nordic and American markets, the purpose of this study is to investigate the relative resilience of Airbnb and the hotel industry against risks and external shocks by comparing key hotel and Airbnb industry indicators (i.e. occupancy, ADR, and RevPAR) at two points during the global pandemic of COVID-19. The study results confirmed that the key industry indicators revealed diminished relative effects in Airbnb performance indicators during the pandemic. This is explained by the Airbnb's ability to quickly adjust supply schedules in response to external shocks in the pandemic. The results suggest compared to the hotel industry, Airbnb is more resilient to potential external shocks from demand or/and supply arising from risks, including economic crises or natural disasters. The study increases the importance for the hotel industry to project and simulate their relative resilience as compared to Airbnb or similar competitors, as it may give way to enhanced strategies allowing for innovative adjustments to lower the total impact of various shocks. Furthermore, the study gives rise to the need for more specific research on resilience, allowing for the potential mitigation of risk across housing sectors during crises.

Publication Date

6-2022

Original Citation

Medeiros, M., Xie, J., & Severt, D. (2022). Exploring relative resilience of Airbnb and hotel industry to risks and external shocks. Scandinavian Journal of Hospitality & Tourism, 22(3), 274–283. https://doi.org/10.1080/15022250.2022.2059563

Document Type

Paper

Language

English

Source Title

Scandinavian Journal of Hospitality and Tourism

Volume

22

Issue

3

College

Rosen College of Hospitality Management

Location

Rosen College of Hospitality Management

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