A Game Theory approach to Airbnb and hotels competition

Authors

  • Juan Pedro Aznar Associate Professor. Economics, Finance and Accounting Department, ESADE Business and Law School, Ramon LLull Univeristy. Barcelona, Spain. E-mail: juanpedro.aznar@esade.edu Avenida Pedralbes, 60-62, Barcelona, 08034, Phone number: + 34 93 280 61 62 (2231 extension)
  • Josep Maria Sayeras Maspera Associate Professor. Economics, Finance and Accounting Department. ESADE Business and Law School, Ramon LLull Univeristy. Barcelona, Spain. E-mail: josepm.sayeras@esade.edu Avenida Pedralbes, 60-62, Barcelona, 08034
  • Xavier Quer Research Assistant. Economics, Finance and Accounting Department. ESADE Business and Law School, Ramon LLull Univeristy. Barcelona, Spain. E-mail: xavier.quer@alumni.esade.edu Avenida Pedralbes, 60-62, Barcelona, 08034

DOI:

https://doi.org/10.54055/ejtr.v21i.362

Keywords:

Airbnb, pricing strategy, quality, sequential game.

Abstract

The rapid growth of Airbnb listings has represented a challenge for hotels. While most of the existent literature has focused on empirically measuring the impact of Airbnb listings on hotels’ revenues and profitability, the present research is one of the first attempts to develop a theoretical framework based on game theory to model a hotel’s best response in terms of investment to improve the quality of service and pricing strategy. The model results suggest that hotel location, the average value of long-term rental contracts and the density of available apartments influence the hotel strategy.

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Published

2019-03-01

How to Cite

Aznar, J., Maspera, J., & Quer, X. (2019). A Game Theory approach to Airbnb and hotels competition. European Journal of Tourism Research, 21, 119–123. https://doi.org/10.54055/ejtr.v21i.362

Issue

Vol. 21 (2019): European Journal of Tourism Research

Section

Research notes

License

Copyright (c) 2019 Creative Commons Attribution 4.0 International (CC BY 4.0)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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