Airbnb and hotel revenues in popular Greek destinations

Abstract

PurposeThis paper explores the role of Airbnb listings on hotel revenues in certain popular Greek tourist destinations.Design/methodology/approachThis paper explores the role of Airbnb listings on hotel revenues in certain popular Greek tourist destinations. The analysis makes use of the panel GMM method, while the findings document that the Airbnb listings exert a negative impact on hotel revenues.FindingsThe results indicate that it is primarily non-business and low-price hotels that are being influenced, while the hotel industry responds to the competition through lower room prices and not through occupancy rates. The paper documents that although the Airbnb is a new factor in the Greek tourism industry, it has turned into a significant competitor against hotels.Originality/valueThis is the first paper which documents that although Airbnb is a new factor in the Greek tourism industry, it has turned into a significant competitor against hotels. The findings are expected to provide further insights into the workings of the sector and the potential regulated policies needed to be adopted.

Competitors or Complements: A Meta-analysis of the Effect of Airbnb on Hotel Performance

“…We removed the studies including both current and historical Airbnb supply measures in a single model (e.g., Apergis, Hayat, and Saeed 2020).…”

Sustainability and sustainable development

“…At the same time, there are studies (in Greece) in which it is pointed out that Airbnb has turned into a significant competitor for hotels. It is primarily non-business and low-price hotels that are being influenced (Apergis, Hayat, & Saeed, 2020).…”

Airbnb as a sharing economy-enabled digital service platform: The power of motivational factors and the moderating role of experience

“…Airbnb is a prominent business model that serves visitors (e.g., tourists, business travelers, students, and people visiting friends and/or family or attending sports and cultural events and leisure activities) with a range of accommodation-renting options, such as different accommodation types (e.g., private room, shared room, and entire home), different prices, different durations (from day trips to staying several months), and different accommodation options (e.g., vacation homes, tree houses, and castles) (Dann et al, 2019; Forbes, 2016; Lutz and Newlands, 2018; Mittendorf and Ostermann, 2017; Zervas et al, 2017). The platform is positioned as a disruptive innovation in the tourism sector and is a serious competitor for that industry providing both challenges for other businesses in the sector, and opportunities for those in the related destinations by acting as a source of income and employment (Apergis et al, 2020; Dogru et al, 2019; Fang et al, 2016; Heo and Blengini, 2019), and the economy in general (Dann et al, 2019; Guttentag, 2015; Mody et al, 2019; So et al, 2018; Solnet et al, 2016). We believe that one way to explore the features of Airbnb and understand its economic role in destination competitiveness is observing the customers of that platform who can be not only tourists but also other visitors of the related destination because those visitors are one of the parties that shape and direct the competitiveness in destinations with their actions.…”

“…Airbnb has also had a positive economic impact on the tourism and hospitality industry and those related destinations (Dogru et al, 2020). The platform has added a new perspective to the competition in the market by acting as a new source of income and employment and bringing greater economic development to the related destination (Apergis et al, 2020; Dogru et al, 2019; Fang et al, 2016; Heo and Blengini, 2019). To examine the platform through the eyes of Airbnb’s real customers in order to explain the competition in Airbnb destinations, customers’ motivations can be revisited since the research on Airbnb does not present a holistic view of customer motivations (i.e., the absence of a common view for customer motivations) as Guttentag et al (2018) and So et al (2018) clearly highlighted.…”