INFLUENCE OF AIRBNB ON HOTEL SECTOR PERFORMANCE INDICATORS IN CROATIA

Purpose - The purpose of this research paper is to explore the influence of rising Airbnb supply on main hotel accommodation sector performance indicators: room revenues (RevPAR), average daily rates (ADR) and occupancy rates (OCC) in Croatia. Design - Airbnb has achieved global success and has received much research attention from scholars. We used Airbnb data as a sample of total short stay accommodation sector in Croatia Methodology - In order to quantify the extent of Airbnb influence on the hotel accommodation sector performance indicators in Croatia, a cross-section regression approach is undertaken. The data on key hotel performance indicators were obtained from Smith Travel Research (STR) while Airbnb data was obtained from Airdna, a third-party data provider. Due to data limitations the observed period were monthly observations, from January 2015 - December 2018. Approach - Croatia is a small, open, tourism-oriented economy of South East Europe and therefore offers a good opportunity to observe the influence of Airbnb and the sharing economy on hotel sector performance in the European south - east Findings - The findings indicate a statistically significant positive influence of rising Airbnb supply on main hotel sector performance indicators except occupancy. Originality of the research - Research reported thus so far provides mixed findings on the influence of Airbnb on hotel sector performance indicators. This paper offers a first insight into the impact of Airbnb on Croatian hotel accommodation sector performance indicators. We used Airbnb data as a sample of total short stay accommodation sector in Croatia and report positive correlations with main hotel performance indicators. Recommendations for policy and future research are provided.