Has COVID-19 changed the factors explaining the occupancy of Airbnb accommodation? Madrid as a case study

Abstract

In the aftermath of the COVID-19 pandemic, the dynamics of short-term rental demand, particularly on Airbnb, have seen pivotal shifts. Using Madrid as a case study, this research used strategic sampling to investigate changes in occupancy, housing attributes, and online reputation. Leveraging a sup-likelihood ratio test and a hedonic-type pooled panel-data Logit regression, we identified a marked structural break. Findings revealed a diminished demand-side bargaining power, resulting in increased rental prices and reduced information transparency. These results offered critical insights for tourism industry stakeholders, especially destination managers and Airbnb hosts.