Spillover Effects of Home Sharing on Local Markets: Evidence from Local Tourist Attractions

Posted: 18 Jan 2019 Last revised: 20 Jan 2019

See all articles by Karen Xie

Karen Xie

University of Denver, Daniels College of Business

Jianwei Liu

Harbin Institute of Technology

Wei Chen

University of Arizona - Eller College of Management

Yong Liu

University of Arizona

Date Written: January 17, 2019

Abstract

Home sharing, as a key element of the sharing economy, has changed the way people travel. This paper examines an important spillover of home sharing on local markets: the impact on local tourist attractions. We investigate how the entry and supply expansion of home sharing affect the popularity as well as consumer experience of the attractions. Based on panel data of ¬home-sharing properties and the online reviews of local attractions, our analysis leverages a quasi-experiment design (i.e., the variation in the timing of home-sharing entry and supply expansion across different attractions) to estimate the spillover. The findings provide strong evidence that home sharing generates greater demand for local attractions through capacity expansion. This increase is particularly pronounced for high-demand attractions and during peak seasons, but is weakened in local attractions which are surrounded by a higher concentration of traditional hotels. Further, home sharing elevates consumer experience at local tourist attractions, with the effect greater for high-demand attractions. Our point estimations suggest that each increase of one-hundred home-sharing properties is associated with an 8.1% increase in the reviews of the attraction and an increase of review rating by 0.08. These findings constitute a valuable addition to the literature on the sharing economy. They provide direct managerial and societal implications for destination planners, the management of local attractions, and hotel managers.

Keywords: home sharing, sharing economy, spillover, destination marketing, tourist marketing, difference-in-differences

Suggested Citation

Xie, Karen and Liu, Jianwei and Chen, Wei and Liu, Yong, Spillover Effects of Home Sharing on Local Markets: Evidence from Local Tourist Attractions (January 17, 2019). Available at SSRN: https://ssrn.com/abstract=3317307

Karen Xie

University of Denver, Daniels College of Business ( email )

2101 S. University Blvd.
Denver, CO 80208
United States

Jianwei Liu

Harbin Institute of Technology ( email )

Heilongjiang
China

Wei Chen (Contact Author)

University of Arizona - Eller College of Management ( email )

McClelland Hall
P.O. Box 210108
Tucson, AZ 85721-0108
United States

Yong Liu

University of Arizona ( email )

1130 E Helen Street
Tucson, AZ 85721
United States

HOME PAGE: http://www.u.arizona.edu/~yoliu/

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