This study aims to explore the impact of Airbnb on small accommodations by drawing upon the theory of disruptive innovation. It examines how the growth of Airbnb supply and the performance of Airbnb listings reshape the small accommodation landscape. Furthermore, this study conducts a heterogeneity analysis by using listing type, host type and accommodation size, providing detailed insights in the relationship between Airbnb and small accommodations.
The authors constructed a data set spanning 16 South Korean provinces from 2015 to 2024 and used the system-generalized method of moments for this analysis. For the heterogeneity analysis, the authors used the number of listings managed by a host and the room size of small accommodations.
The results show that Airbnb supply is negatively associated with small accommodation supply, with differences among the types of Airbnb listings and hosts. Medium- and large-sized small accommodations have demonstrated significant value. However, Airbnb performance has had no significant effect on the supply of small accommodations except for the influence of the supply of large-sized small accommodations.
This study explores Airbnb’s impact on small accommodations, addressing a research gap overlooked in studies focused on large hotels. By applying the theory of disruptive innovation, it highlights the unique vulnerability of small accommodations and provides insights into structural changes in the lodging industry, offering a basis for effective policymaking.
