The effect of type of lodging and professionalism on the efficiency of P2P accommodation

Abstract

This paper analyses the effect of the different levels of hosts’ professionalism (single and multi-unit host) and accommodation types on the time-varying technical efficiency of P2P accommodation. To do this, we employ a panel data stochastic frontier model which disentangles time-varying efficiency from unobserved heterogeneity. We use a database from Airbnb listings for the Canary Islands (Spain) from January 2019 to September 2020, including the lockdown period due to the Covid-19 pandemic. The results indicate that the lowest priced lodgings are the most efficient accommodation type and that properties managed by single-unit hosts are more efficient than those managed by multi-unit hosts. These results are theoretically founded on the existence of positive agglomeration effects in the hospitality industry.

Keywords

technical inefficiency airbnb properties maximum simulated likelihood type of lodging professionalism D61 L83 Z30 Z31

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