Airbnb and COVID-19: SPACE-TIME vulnerability effects in six world-cities

Area of Science:

• Hospitality Management
• Tourism Economics
• Urban Studies

Background:

• The COVID-19 pandemic significantly disrupted the global hospitality sector.
• Understanding the specific impacts on the short-term rental market, like Airbnb, is crucial.

Purpose of the Study:

• To analyze the vulnerability and market dynamics of Airbnb accommodations globally during the COVID-19 pandemic (January 2020-August 2021).
• To investigate the influence of intra-city location on Airbnb economic performance.
• To estimate the pandemic's effect on Airbnb pricing strategies.

Main Methods:

• Utilized Airbnb booking data from six major global cities.
• Employed multilevel logistic regression models to identify 'corona survivability footprints'.
• Applied a hedonic price model to assess pandemic-driven price elasticity of demand.

Main Results:

• The Airbnb market experienced overall hardships and significant price volatility across most studied cities.
• Identified 'corona echo-effects' impacting specific accommodation segments and locations.
• Demonstrated geographic distributional impacts of the pandemic on customer accommodation choices.

Conclusions:

• The study underscores the vulnerability of the Airbnb market to global crises like the COVID-19 pandemic.
• Intra-urban location and accommodation type played significant roles in market resilience and customer preferences.
• Findings contribute to tourism literature by detailing the pandemic's nuanced effects on short-term rental markets.