Substitution among hotels and P2P accommodation in the COVID era: A spatial dynamic panel data model at the listing level
Short Abstract
This paper studies the demand of the Airbnb’s listings in the Canary Islands analysing not only whether peer-to-peer (P2P) accommodation substitutes or complement the traditional accommodation, but also the spatial correlation between listings. Moreover, we analyse the effect of the COVID-19 pandemic crisis in this lodging industry. To do this, we use a spatial dynamic panel data demand model for occupancy rates related to prices of Airbnb listings, prices of competitors (hotels and apartments) and the income. Results indicate that there is positive autocorrelation between occupancy rates, own-price elasticities are inelastic and positive cross-price elasticities, indicating that they are substitute goods. Income elasticity is lower than one and not statistically significant indicating that the demand for tourism in the Canary Islands is insensitive to the economic situation in the origin countries. COVID-19 effects are an increase of the elasticity and the substitution effect of hotels.
Type of Submission
Paper Presentation
Location
Gran Canaria
Recommended Citation
Suárez-Vega, Rafael; Pérez-Rodríguez, Jorge V.; and Hernandez, Juan M., "Substitution among hotels and P2P accommodation in the COVID era: A spatial dynamic panel data model at the listing level" (2023). ITSA 2022 Gran Canaria - 9th Biennial Conference: Corporate Entrepreneurship and Global Tourism Strategies After Covid 19. 28.
https://docs.lib.purdue.edu/itsa/ITSA2022/ITSA2022/28
Participation
Attend the conference at Gran Canaria in person.
Substitution among hotels and P2P accommodation in the COVID era: A spatial dynamic panel data model at the listing level
Gran Canaria
This paper studies the demand of the Airbnb’s listings in the Canary Islands analysing not only whether peer-to-peer (P2P) accommodation substitutes or complement the traditional accommodation, but also the spatial correlation between listings. Moreover, we analyse the effect of the COVID-19 pandemic crisis in this lodging industry. To do this, we use a spatial dynamic panel data demand model for occupancy rates related to prices of Airbnb listings, prices of competitors (hotels and apartments) and the income. Results indicate that there is positive autocorrelation between occupancy rates, own-price elasticities are inelastic and positive cross-price elasticities, indicating that they are substitute goods. Income elasticity is lower than one and not statistically significant indicating that the demand for tourism in the Canary Islands is insensitive to the economic situation in the origin countries. COVID-19 effects are an increase of the elasticity and the substitution effect of hotels.
https://docs.lib.purdue.edu/itsa/ITSA2022/ITSA2022/28