Spillover Effects of Home Sharing on Local Markets: Evidence from Local Tourist Attractions
Posted: 18 Jan 2019 Last revised: 20 Jan 2019
Date Written: January 17, 2019
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
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