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This paper examines whether short-term rental listings in the sharing accommodation market take account of market risk in their pricing. To do so, we estimate time-varying market risks, and forecast price changes using daily supply-price time series. The empirical analysis was conducted using daily data for the Canary Islands sharing accommodation market for the period January 2016 to September 2021. The following main results were obtained. First, individual listings face systematic risks that are lower than the average market listing return, but multi-unit hosts are more sensitive to market index variations than single-unit hosts. Second, there is a time-varying but long-range dependence on market risk, indicating a slow reversion to the mean level of volatility. Price changes also reflect negative long-range dependence or anti-persistence. Third, volatility does not affect price adjustments in the market (no evidence of risk-return trade-off) for types of hosts and lodgings. Fourth, models can be used to perform risk management using value-at-risk approaches, and market risks are greater for houses and single-unit hosts in the GBP market. Finally, prices can be predicted in different horizons using long-range dependence models. [ABSTRACT FROM AUTHOR]

This paper investigates the inefficiencies of inputs in the hotel industry. To do this, we apply the weighted Russell directional distance model (Barros et al., 2012; Chen et al., 2014) considering an input-oriented approach. This model allows to obtain not only aggregate inefficiency measures, but also their components. In a second stage, we analyze the individual and overall efficiency measures considering several factors in a truncated Bayesian Tobit regression. The empirical analysis is based on the hotel sector of two mature Spanish destinations (the Canary and Balearic Islands). Results show that although hotels located in both regions obtain high efficiency levels, they are notably inefficient in terms of capital costs management. Furthermore, overall results show that Canarian hotels are less efficient than Balearic hotels in the management of all inputs. Finally, the type of chain and location variables appear to affect the overall and individual efficiency scores obtained by Canarian hotels. [ABSTRACT FROM AUTHOR]

This paper analyses the determinants of tourist length of stay in sharing accommodation. Methodologically, the paper proposes a new approach to account for the observed bimodality of length of stay. More specifically, the determinants of length of stay are analyzed by modeling both the conditional mean and conditional modal frequencies, which represent shorter and longer tourist stays, unlike previous contributions on length of stay where modeling has been based exclusively on the conditional mean. The empirical analysis examines the length of stay in sharing accommodation lodgings (Airbnb and Homeaway) of tourists visiting the Canary Islands (Spain) before and after the outbreak of the COVID-19 pandemic. The results show a bimodal distribution of length of stay: 1 and 7 nights in the pre-pandemic period, reduced to 1 and 2 nights in the pandemic period. The results also indicate that the model approach followed in this paper is preferable to other previous bimodality models in terms of estimation simplicity and fit. In addition, the model allows an analysis of the determinants of length of stay and differentiation of the influence of each determinant on shorter and longer stays. [ABSTRACT FROM AUTHOR]

This paper analyses the effect of the different levels of hosts' professionalism (single and multi-unit host) and accommodation types on the time-varying technical efficiency of P2P accommodation. To do this, we employ a panel data stochastic frontier model which disentangles time-varying efficiency from unobserved heterogeneity. We use a database from Airbnb listings for the Canary Islands (Spain) from January 2019 to September 2020, including the lockdown period due to the Covid-19 pandemic. The results indicate that the lowest priced lodgings are the most efficient accommodation type and that properties managed by single-unit hosts are more efficient than those managed by multi-unit hosts. These results are theoretically founded on the existence of positive agglomeration effects in the hospitality industry. [ABSTRACT FROM AUTHOR]

This study was conducted to analyse the influence of technological differences on hotel efficiency in the Canary Islands (Spain), with particular regard to the heterogeneity observed in hotel ownership and size. A metafrontier approach, based on non-parametric deterministic efficiency methods (data envelopment analysis and free-disposal hull) and robust non-parametric estimators (order-α), is used. This empirical analysis considered a panel data sample selection model of Canary Islands hotels for the period 2002–2015. The results obtained show that the frontiers against which the hotels are compared (metafrontier or group) and the consideration or otherwise of outliers are factors of crucial importance. We find that efficiency depends on hotel size (large hotels are more efficient than small ones), but not on the type of ownership. The results also show that the impact of the global financial crisis on the average technical efficiency of these hotels was slight or non-existent. Finally, the technological gap narrowed over time, especially in large hotels and those with no majority shareholder. [ABSTRACT FROM AUTHOR]

In this article, we analyse whether tourism promotes economic growth using a general dynamic panel data model that incorporates individual and interactive fixed effects and allows for contemporaneous correlation in model innovations. The empirical study is based on quarterly series of GDP and tourist arrivals for 14 European countries covering the period from 1995 to 2019. Results indicate that the case for a positive long-run relationship between tourism and economic growth is rather weak, being slightly stronger for the period prior to the global economic and financial crisis from 2007 to 2010. When applying panel fractional cointegration techniques, we find evidence in favour of the tourism-led growth hypothesis (TLGH) for the full sample mainly for North European countries. For the pre-crisis period, on the other hand, we find evidence in favour of the TLGH for the relevant tourist destinations Spain and France. [ABSTRACT FROM AUTHOR]

This article explores the spending patterns of tourists by market segments of expenditure distribution. We focus on the case of the Canary Islands, that is, a region that is one of the main destinations in the European tourism market, and distinguish between expenditure at origin and expenditure at destination. To do this, we use unconditional quantile regression (QR), which is more appropriate than conditional QR for the interpretation of coefficients. The results suggest that spending behaviour is heterogeneous among quantiles of expenditure in terms of income, price, level of loyalty and hotel accommodation effects. Furthermore, some differences arise between the pattern of expenditure at origin and the one at destination, and among items of expenditure at destination. [ABSTRACT FROM AUTHOR]

This article proposes a model of foreign tourist expenditure, based on expenditure in the country of origin (i.e. reservation of accommodation and transport) and on goods and services at the destination. The study focuses on two measures reflecting the two types of expenditure: the tourist budget share and the difference in growth rates between expenditure at origin and at destination. The random nature of each of these variables is taken into account. The tourist budget share is determined using a fractional response model, based on the beta distribution. This approach allows us to accommodate certain aspects of the empirical budget share distribution, such as skewness, and to represent the results as bounded between 0 and 1, but also to include covariates. The empirical analysis was conducted using data obtained by the Canary Islands Tourist Expenditure Survey, focusing on German and British tourists in particular. The results obtained show that the fractional regression model proposed represents the behaviour of the relevant variables reasonably well and surpasses the performance of the linear regression model. [ABSTRACT FROM AUTHOR]

Tourism receipts have important policy implications for destination countries in terms of government revenues and the management of tourism-related policies. This article uses time series models to analyse the risk exposure reflected in the growth rates of tourism revenues. To do so, we apply risk management measures based on value-at-risk (VaR) and the expected shortfall (ES), analysing monthly data for six Spanish regions from January 2004 to March 2017. Two main results were obtained. Firstly, tourism receipt growth rates present negative long-range dependence. In other words, they have intermediate memory or anti-persistence and therefore show signs of dependence between widely separated observations. Moreover, we detected the existence of long-range dependence in these volatilities in one of the six regions considered. Secondly, we show that VaR based on Generalized Autoregressive Conditional Heteroscedasticity (GARCH)-type models is a valid means of analysing the risk exposure of tourism receipt growth rates, doing so by evaluating various in-sample and out-of-sample VaR thresholds and the ES. [ABSTRACT FROM AUTHOR]