Airbnb and hotel revenues in Greek popular destinations

Abstract

This 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. Moreover, the 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. The findings of this paper are expected to provide further insights into the workings of the sector and the potential regulated policies needed to be adopted by tourism authorities.