Airbnb spatial agglomeration and hotel prices: case of Palma de Mallorca

Abstract

[eng] The traditional accommodation sector is being disrupted by the new concept of Airbnb. In this article we have applied an specific strategy to study Airbnb ‘s spacial agglomeration impact on hotel prices in Palma. The results show no relevant estimations to prove that Airbnb agglomeration has an impact on hotel prices. The causal assumptions behind these results come from the fact that Palma provides an abundant upper-quality accommodation service, that largely differs from Airbnb’s service, and the effect of the seasonal demand that Palma endures.