IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v28y2022i1p222-247.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/13548166211044229
    Download Restriction: no
    File URL: https://libkey.io/10.1177/13548166211044229?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. Qiu, Richard T.R. & Park, Jinah & Li, ShiNa & Song, Haiyan, 2020. "Social costs of tourism during the COVID-19 pandemic," Annals of Tourism Research, Elsevier, vol. 84(C).
    2. Garcia-López, Miquel-Àngel & Jofre-Monseny, Jordi & Martínez-Mazza, Rodrigo & Segú, Mariona, 2020. "Do short-term rental platforms affect housing markets? Evidence from Airbnb in Barcelona," Journal of Urban Economics, Elsevier, vol. 119(C).
    3. David H. Autor & Christopher J. Palmer & Parag A. Pathak, 2014. "Housing Market Spillovers: Evidence from the End of Rent Control in Cambridge, Massachusetts," Journal of Political Economy, University of Chicago Press, vol. 122(3), pages 661-717.
    4. Sigala, Marianna, 2020. "Tourism and COVID-19: Impacts and implications for advancing and resetting industry and research," Journal of Business Research, Elsevier, vol. 117(C), pages 312-321.
    5. Stephen Sheppard & Andrew Udell, 2016. "Do Airbnb Properties Affect House Prices?," Department of Economics Working Papers 2016-03, Department of Economics, Williams College.
    6. Gerwe, Oksana, 2021. "The Covid-19 pandemic and the accommodation sharing sector: Effects and prospects for recovery," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    7. 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.
    8. Chang, Hung-Hao, 2020. "Does the room sharing business model disrupt housing markets? Empirical evidence of Airbnb in Taiwan," Journal of Housing Economics, Elsevier, vol. 49(C).
    9. Horn, Keren & Merante, Mark, 2017. "Is home sharing driving up rents? Evidence from Airbnb in Boston," Journal of Housing Economics, Elsevier, vol. 38(C), pages 14-24.
    10. Škare, Marinko & Soriano, Domingo Riberio & Porada-Rochoń, Małgorzata, 2021. "Impact of COVID-19 on the travel and tourism industry," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    11. Rebecca Diamond & Tim McQuade & Franklin Qian, 2019. "The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco," American Economic Review, American Economic Association, vol. 109(9), pages 3365-3394, September.
    12. Koster, Hans R.A. & van Ommeren, Jos & Volkhausen, Nicolas, 2021. "Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles," Journal of Urban Economics, Elsevier, vol. 124(C).
    13. Dolnicar, Sara & Zare, Samira, 2020. "COVID19 and Airbnb – Disrupting the Disruptor," Annals of Tourism Research, Elsevier, vol. 83(C).
    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. Boto-García, David & Balado-Naves, Roberto & Mayor, Matías & Baños-Pino, José Francisco, 2023. "Consumers' demand for operational licencing: evidence from Airbnb in Paris," Annals of Tourism Research, Elsevier, vol. 100(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. Lauriane Belloy, 2022. "Short-term rental revenues after the lockdown : An advantage for natural areas but always in dense rental spaces," Working papers of Transitions Energétiques et Environnementales (TREE) hal-03671537, HAL.
    2. Yang, Yang & Zhang, Carol X. & Rickly, Jillian M., 2021. "A review of early COVID-19 research in tourism: Launching the Annals of Tourism Research's Curated Collection on coronavirus and tourism1," Annals of Tourism Research, Elsevier, vol. 91(C).
    3. David M. Harrison & Michael J. Seiler & Liuming Yang, 2024. "The Impact of iBuyers on Housing Market Dynamics," The Journal of Real Estate Finance and Economics, Springer, vol. 68(3), pages 425-461, April.
    4. Koster, Hans R.A. & van Ommeren, Jos & Volkhausen, Nicolas, 2021. "Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles," Journal of Urban Economics, Elsevier, vol. 124(C).
    5. Lauriane Belloy, 2022. "Short-term rental revenues after the lockdown : An advantage for natural areas but always in dense rental spaces," Working Papers hal-03671537, HAL.
    6. Joan Monràs & José Garcia Montalvo, 2021. "The effect of second generation rent controls: New evidence from Catalonia," Economics Working Papers 1836, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 2022.
    7. Davide Provenzano & Serena Volo, 2022. "Tourism recovery amid COVID-19: The case of Lombardy, Italy," Tourism Economics, , vol. 28(1), pages 110-130, February.
    8. Tomaso Duso & Claus Michelsen & Maximilian Schäfer & Kevin Ducbao Tran, 2021. "Airbnb and Rental Markets: Evidence from Berlin," Bristol Economics Discussion Papers 21/746, School of Economics, University of Bristol, UK.
    9. Mavropoulos, Antonios, 2021. "To rent or not to rent: A household finance perspective on Berlin's short-term rental regulation," IWH Discussion Papers 1/2021, Halle Institute for Economic Research (IWH).
    10. Jofre-Monseny, Jordi & Martínez-Mazza, Rodrigo & Segú, Mariona, 2023. "Effectiveness and supply effects of high-coverage rent control policies," Regional Science and Urban Economics, Elsevier, vol. 101(C).
    11. Maximilian Schäfer & Kevin Ducbao Tran, 2020. "Airbnb, Hotels, and Localized Competition," Discussion Papers of DIW Berlin 1889, DIW Berlin, German Institute for Economic Research.
    12. Mikawa, Naoto & Yasuda, Shohei & Yukutake, Norifumi, 2023. "Does inheritance taxation reform promote to build inexpensive rental housing?," Journal of the Japanese and International Economies, Elsevier, vol. 68(C).
    13. Maruška Vizek & Tajana Barbić & Anita Čeh Časni, 2024. "The impact of the tourism accommodation composition on housing prices: The case of Croatia," Tourism Economics, , vol. 30(1), pages 267-274, February.
    14. Ka Shing Cheung & Chung Yim Yiu, 2023. "The paradox of airbnb, crime and house prices: A reconciliation," Tourism Economics, , vol. 29(5), pages 1412-1418, August.
    15. Morales-Alonso, Gustavo & Núñez, Yilsy M., 2022. "Dragging on multilisting: The reason why home-sharing platforms make long-term rental prices increase and how to fix it," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    16. Maksim Godovykh & Jorge Ridderstaat & Carissa Baker & Alan Fyall, 2021. "COVID-19 and Tourism: Analyzing the Effects of COVID-19 Statistics and Media Coverage on Attitudes toward Tourism," Forecasting, MDPI, vol. 3(4), pages 1-14, November.
    17. 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.
    18. Ling-en Wang & Bing Tian & Viachaslau Filimonau & Zhizhong Ning & Xuechun Yang, 2022. "The impact of the COVID-19 pandemic on revenues of visitor attractions: An exploratory and preliminary study in China," Tourism Economics, , vol. 28(1), pages 153-174, February.
    19. David López-Rodríguez & María de los Llanos Matea, 2019. "Recent developments in the rental housing market in Spain," Economic Bulletin, Banco de España, issue SEP.
    20. Xu, Minhong & Xu, Yilan, 2021. "What happens when Airbnb comes to the neighborhood: The impact of home-sharing on neighborhood investment," Regional Science and Urban Economics, Elsevier, vol. 88(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:28:y:2022:i:1:p:222-247. 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.