Resilience through an online platform: Evidence from airbnb and hotels

This paper examines how online platforms enhance the resilience of affiliated properties during crises, using the COVID-19 pandemic as a natural experiment. Employing difference-in-differences approach, we compare the performance of platform-listed hotels and their non-listed counterparts in New York City before and after the pandemic's onset. Our findings reveal that platform-affiliated hotels achieved significantly higher booking rates during the pandemic by leveraging operational adaptability and building trust at a greater scale. These results are robust to various specifications, including propensity score matching, synthetic difference-in-differences, and several sensitivity analyses. By identifying the unique role of platforms in fostering resilience, this study extends the literature on digital resilience and offers actionable insights for traditional businesses navigating external shocks.