Assessing Airbnb’s impact on hotels through an analysis of price linkages

Recognizing price interdependence as a key indicator of market integration, this study uses a cointegration approach to examine price linkages between Airbnb and hotel rooms, providing deeper insight into their competition within the accommodation market. Unlike methods that primarily focus on hotel performance metrics, which make it difficult to isolate Airbnb’s impact from broad factors like tourism growth, price linkage analysis offers a more precise understanding of competition grounded in market theory. We demonstrate this by applying threshold autoregressive models to analyze the price interactions between hotel and Airbnb room prices in the Norwegian market.