Airbnb and hotels: friends, enemies or frenemies?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oswald Mhlanga
Keyword(s):  
South Africa ◽  
Time Series Data ◽  
Sharing Economy ◽  
Disruptive Innovation ◽  
Series Data ◽  
Data Set ◽  
Content Type ◽  
Complementary Role ◽  
Triple Difference ◽  
The Impact

Purpose The purpose of this paper is to explore the intricate relationship between the flagship of the sharing economy, Airbnb and hotel revenue per available room (RevPAR) in South Africa. Design/methodology/approach To identify the impact of Airbnb on hotel RevPAR, the paper used a triple difference-in-differences framework that compares changes in cities in South Africa where Airbnb started operating relative to areas without Airbnb. A total of 569 hotels were analysed. Findings While the study finds no evidence of adverse impacts of Airbnb on hotel RevPAR, the findings show that the entry of Airbnb led to a decrease in RevPAR of budget hotels. However, its impact is more pronounced during periods of peak demand, consequently, disrupting the pricing power of hotels. Research limitations/implications The research was based on the impact of Airbnb on hotel RevPAR in hotels situated in specific cities in South Africa. Caution is therefore required when generalising the findings of this study to other hotels in other geographic areas. Moreover, if a longer time series data set of hotels in the post-Airbnb time period could become available, it would be interesting to further investigate the time-varying dynamic effects of Airbnb on hotel RevPAR. However, the findings underscore the notion that innovations are not intrinsically disruptive but only relative to another product. In so doing, the study adds to the limited body of work in the field on disruptive innovation and to the academic discourse on innovation in tourism more broadly. Practical implications First, the findings suggest the impact on hotels tends towards Airbnb generally playing a largely complementary role rather than a diversionary one. However, to increase RevPAR, hotels should systematically change their pricing models to account for flexible capacity by rethinking the wisdom of seasonal pricing and reduce prices during peak seasons to avoid inviting more competition from Airbnb. Originality/value To the best of the author’s knowledge, this paper is the first to explore the relationship between Airbnb and hotel markets using a triple difference methodology.

Peer-to-peer-travel: is Airbnb a friend or foe to hotels?

2019 ◽  
Vol 13 (4) ◽  
pp. 443-457 ◽  
Author(s):  
Oswald Mhlanga
Keyword(s):  
South Africa ◽  
Empirical Evidence ◽  
Time Series Data ◽  
Theoretical Perspective ◽  
Hotel Industry ◽  
Disruptive Innovation ◽  
Series Data ◽  
Bottom Line ◽  
Data Set ◽  
Content Type

Purpose The sharing economy has caught great attention from researchers and policymakers. However, due to the dearth of available data, not much empirical evidence has been provided. This paper aims to empirically assess the impacts of Airbnb on hotel performances in South Africa. Design/methodology/approach Using South Africa as a case study, the study measures the impacts of Airbnb on hotel performances on three key metrics, namely, room prices, occupancy and Revenue per available room (RevPAR). A difference-in-difference model is estimated using a population-based data set of 809 hotels from 2016 to 2018. Findings The results reveal that despite Airbnb significantly and negatively impacting on hotel occupancies it has a non-significant effect on hotel prices and RevPAR. Although from the theoretical perspective a disruptive innovation business model such as Airbnb can possibly have a negligible effect on hotel performances because it may attract a different group of customers and create a new market, the empirical findings of this study fail to support this theoretical hypothesis. Consequently, the findings diverge with newly developed knowledge in other markets and point to nuanced and contextual complementary effects. Research limitations/implications Although some interesting findings are revealed into his study, some caveats remain. For instance, the study relied on data from hotels not from Airbnb. If the data of Airbnb can become available, it would be interesting to further examine whether the aggregated RevPAR of Airbnb can compensate for the aggregated loss of hotel RevPAR. This type of analysis could provide a broader evaluation scope regarding the overall effect of Airbnb on hotel performances. Moreover, if a longer time series data set of hotels in the post-Airbnb time period could become available, it would be interesting to further investigate the time-varying dynamic effects of Airbnb on hotel performances. Practical implications While hotels have launched a campaign to portray Airbnb as being commercial operators looking to compete illegally with hotels for the same segment of customers, this study shows that the rhetoric has been exaggerated. Airbnb, and more broadly, vacation rentals do not represent a war with hotels. They represent an answer to a different need. Indeed, the study reveals that Airbnb’s offer is a mere supplement to the market contrary to media rhetoric that it is meant to substitute hotels. The study has several implications for practitioners. First, these results are important because they serve as evidence against news articles that claim Airbnb is driving hotels out of business. They also show that if current trends continue, employees in the hotel industry in South Africa do not need to be concerned about losing their jobs because of Airbnb’s emergence. It is also important information for investors who may be concerned that Airbnb is hurting the hotel industry’s bottom line. Second, as the share of Airbnb listings on the accommodation market varies dramatically between cities, it is likely that eventual regulations/restrictions should be introduced in the provincial levels, while most of the cities continue benefiting from the increasing number of Airbnb visitors. Originality/value To the best of the author’s knowledge, this study is the first in South Africa to provide empirical evidence that Airbnb is significantly changing consumption patterns in the hotel industry, as opposed to generating purely incremental economic activity.

Does immiserizing growth exist? Evidence from world’s top trading nations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Syed Tehseen Jawaid ◽  
Mariya Ahmad Qureshi ◽  
Samra Ali
Keyword(s):  
Logistic Regression ◽  
Time Series Data ◽  
Real Data ◽  
Terms Of Trade ◽  
Series Data ◽  
Revealed Preferences ◽  
Data Set ◽  
Content Type ◽  
Quantity Index ◽  
The Impact

Purpose This study aims to motivate the reality that experiential investigation of immiserizing growth has not been performed at large. The key objective of the study is to analyse the empirical existence of immiserizing growth in the real world. Design/methodology/approach Theory of revealed preferences has been implemented for welfare movement by using Laspeyres and Paasche quantity index and for empirical estimations, logistic regression has been applied. The study established panel data of the world’s largest trading nations, including the USA, China, France, Germany, UK, Italy, Japan, the Netherland and Canada. Annual time series data for an extensive time period covering from 1981 till 2017 have been used. Findings Findings of the Laspeyres and Paasche index reveal that out of nine countries immiserizing growth prevails in five nations and those are Italy, Canada, the Netherland, UK and Japan. The results of panel logistic regression verify the significance of terms of trade on immiserizing growth in all included countries. Separate logistic regression has also been performed on all the five countries from which Italy, Canada, the Netherland exhibit significant results. Originality/value This study is a pioneer attempt towards the concept of immiserizing growth. Considering the fact that immiserizing growth is viewed by the majority of the scholars as a theoretical notion, this study attempts to investigate analytically the existence of immiserizing growth with real data set. The impact of terms of trade deterioration on the welfare of the world’s largest trading nations has been focused on the research which is in compliance with the concept of Bhagwati (1958).

Does Tax Increment Financing Pass the “But-for” Test in Missouri?

2019 ◽  
Vol 33 (3) ◽  
pp. 187-202
Author(s):  
Ahmed Rachid El-Khattabi ◽  
T. William Lester
Keyword(s):  
Economic Development ◽  
Kansas City ◽  
Time Series Data ◽  
Local Level ◽  
Conclusive Evidence ◽  
Series Data ◽  
Tax Increment Financing ◽  
Data Set ◽  
Development Indicators ◽  
The Impact

The use of tax increment financing (TIF) remains a popular, yet highly controversial, tool among policy makers in their efforts to promote economic development. This study conducts a comprehensive assessment of the effectiveness of Missouri’s TIF program, specifically in Kansas City and St. Louis, in creating economic opportunities. We build a time-series data set starting 1990 through 2012 of detailed employment levels, establishment counts, and sales at the census block-group level to run a set of difference-in-differences with matching estimates for the impact of TIF at the local level. Although we analyze the impact of TIF on a wide set of indicators and across various industry sectors, we find no conclusive evidence that the TIF program in either city has a causal impact on key economic development indicators.

scholarly journals Electing to Do Women's Work? Gendered Divisions of Labor in U.K. Select Committees, 1979–2016

2020 ◽  
pp. 1-33
Author(s):  
Mark Goodwin ◽  
Stephen Holden Bates ◽  
Stephen McKay
Keyword(s):  
Time Series Data ◽  
Series Data ◽  
Left Wing ◽  
Select Committee ◽  
Data Set ◽  
Representation Of Women ◽  
The United Kingdom ◽  
Parliamentary Committee ◽  
Original Time ◽  
The Impact

Abstract Where female representatives are located within legislatures and what they do matters for the substantive representation of women. Previous scholarship has found that female parliamentary committee members participate differently than their male counterparts in relation to both policy area and status of positions held. Here, we draw on an original time-series data set (n = 9,767) to analyze the U.K. select committee system. We test for the impact of four variables previously found to be important in explaining changes in gendered divisions of labor: the system of appointment/election, the proportion of female representatives in the legislature, sharp increases in the number of female representatives, and changes in government from right-wing parties to left-wing parties. We find that horizontal and vertical divisions of labor persist over time and that membership patterns in the United Kingdom mainly correspond to those found elsewhere. Moreover, there is little evidence that any of the four variables have systematically affected membership patterns.

The effects of political, economic and financial components of country risk on housing prices in South Africa

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paul-Francois Muzindutsi ◽  
Sanelisiwe Jamile ◽  
Nqubeko Zibani ◽  
Adefemi A. Obalade
Keyword(s):  
Risk Factors ◽  
South Africa ◽  
Housing Market ◽  
Time Series Data ◽  
Housing Prices ◽  
Political Risk ◽  
Country Risk ◽  
Series Data ◽  
Content Type ◽  
Short Run

Purpose The housing market in South Africa has the potential to drive economic growth and attract foreign investment, but it can be affected by various risk factors. This paper aims to conduct an empirical analysis of the effect of country risk components on the housing market in South Africa. Design/methodology/approach Linear and nonlinear autoregressive distributed lag (ARDL) models were used to evaluate the effects of the economic, financial and political risk factors of country risk on the prices of different segments of houses based on 276 monthly time-series data from January1995 to December 2015. Findings First, the results established that the three housing indices were more sensitive to political risk in the long run. Second, short run results showed that the three housing indices were largely influenced by their own preceding adjustments in the short run albeit minimal influences from political risk. Third, large housing segments indicated a higher magnitude of the country risk effect in South Africa. Originality/value This paper concluded that the response of housing prices to changes in the country risk components differed across the three segments of the housing market in South Africa. Consequently, this study presented the first comparison of the reactions of different housing segments to different components country risk.

The impact of Benin’s first public procurement code and its amendment on healthcare equipment acquisition prices

2018 ◽  
Vol 18 (4) ◽  
pp. 306-322 ◽  
Author(s):  
Pamphile Thierry Houngbo ◽  
Maikel Kishna ◽  
Marjolein Zweekhorst ◽  
Daton Medenou ◽  
Joske G.F. Bunder-Aelen
Keyword(s):  
Health Care ◽  
Time Series Data ◽  
Good Governance ◽  
Public Procurement ◽  
Linear Regression Analysis ◽  
Interrupted Time Series ◽  
Series Data ◽  
Content Type ◽  
The Impact ◽  
Health Care Equipment

PurposeTo satisfy donors and reduce public procurement acquisition prices, Benin has implemented and amended its first public procurement code guided by top-down principles of good governance.Design/methodology/approachThis study aims to measure the impact of the code and its amendment on public procurement acquisition prices of health-care equipment from 1995 to 2010.FindingsA segmented linear regression analysis was performed using interrupted time-series data. The analysis shows that the code and its amendment did not reduce acquisition prices, indicating the limited impact of the code. The authors recommend the implementation of bottom-up processes in establishing the public procurement system, and the development of a reference pricelist of the most widely used health-care equipment, as possible solutions for improving the effectiveness of the code.

Investigating the non-linear Wagner’s hypothesis in South Africa

2017 ◽  
Vol 8 (4) ◽  
pp. 462-473 ◽  
Author(s):  
Temitope Lydia A. Leshoro
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Government Spending ◽  
Time Series Data ◽  
Series Data ◽  
Unique Contribution ◽  
Content Type ◽  
Non Linear ◽  
Regression Error ◽  
The Government

Purpose The commonly adopted view of the relationship between government spending and economic growth follows the Keynesian approach, in which government spending is considered to determine economic growth. However, there is another theory, which suggests that economic growth in fact determines government spending. This is Wagner’s hypothesis. The purpose of this paper is to investigate which of the two approaches applies to South Africa, and further observes the level of non-linearity between the two variables. Design/methodology/approach This study was carried out using quarterly time series data from 1980Q1 to 2015Q1. Granger causality technique was used to observe the direction of causality between the two variables, while regression error specification test (RESET) was employed to determine whether the variables exhibit linear or non-linear behaviour. This was followed by observing the threshold band, using two techniques, namely, sample splitting threshold regression and quadratic generalised method of moments. Findings The causality result shows that South Africa follows Wagner’s law, whereby government spending is determined by economic growth, supporting Odhiambo (2015). The RESET result shows that the variables depict a non-linear relationship, thus the government spending economic growth model is non-linear. It was found that if positive economic development is to be achieved, economic growth should preferably be kept within the −1.69 and 3.0 per cent band, and specifically above 1 per cent band. Originality/value The unique contribution of this study is that no previous study has attempted the non-linear government spending-economic growth nexus whether within the Keynesian or Wagner law for South Africa.

Measuring electric energy efficiency in Portuguese households

2015 ◽  
Vol 26 (3) ◽  
pp. 407-422 ◽  
Author(s):  
Thomas Weyman-Jones ◽  
Júlia Mendonça Boucinha ◽  
Catarina Feteira Inácio
Keyword(s):  
Time Series ◽  
Energy Efficiency ◽  
Energy Demand ◽  
Energy Use ◽  
Time Series Data ◽  
Electric Energy ◽  
Electrical Energy ◽  
Series Data ◽  
Data Set ◽  
Content Type

Purpose – There is a great interest from the European Union in measuring the efficiency of energy use in households, and this is an area where EDP has done research in both data collection and methodology. This paper reports on a survey of electric energy use in Portuguese households, and reviews and extends the analysis of how efficiently households use electrical energy. The purpose of this paper is to evaluate household electrical energy efficiency in different regions using econometric analysis of the survey data. In addition, the same methodology was applied to a time-series data set, to evaluate recent developments in energy efficiency. Design/methodology/approach – The paper describes the application to Portuguese households of a new approach to evaluate energy efficiency, developed by Filippini and Hunt (2011, 2012) in which an econometric energy demand model was estimated to control for exogenous variables determining energy demand. The variation in energy efficiency over time and space could then be estimated by applying econometric efficiency analysis to determine the variation in energy efficiency. Findings – The results obtained allowed the identification of priority regions and consumer bands to reduce inefficiency in electricity consumption. The time-series data set shows that the expected electricity savings from the efficiency measures recently introduced by official authorities were fully realized. Research limitations/implications – This approach gives some guidance on how to introduce electricity saving measures in a more cost effective way. Originality/value – This paper outlines a new procedure for developing useful tools for modelling energy efficiency.

scholarly journals Impact of Foreign Direct Investment on Human Development Index in South Africa

2020 ◽  
Vol 7 (1) ◽  
pp. 58
Author(s):  
Marius KOUNOU
Keyword(s):  
South Africa ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Time Series Data ◽  
Empirical Studies ◽  
Sub Saharan Africa ◽  
Series Data ◽  
Long Run ◽  
The Impact

Many studies have been done on the impact of Foreign Direct Investment on economic growth and poverty reduction in developing countries, however there is a lack of empirical studies of FDI impact on poverty reduction in South Africa which is the second largest FDI recipients of one of the poorest regions in the world (sub Saharan Africa). We used time series data from 1990 to 2017 with the ARDL method to evaluate the impact of FDI Inflow on HDI in the country. The results show that FDI inflow has no significant impact on HDI both in the short run and long run on the country. This result is consistent with findings reported in the literature.

scholarly journals The impact of economic growth on unemployment in South Africa: 1994 – 2012

2015 ◽  
Vol 12 (4) ◽  
pp. 699-707
Author(s):  
Handson Banda ◽  
Ireen Choga
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Time Series Data ◽  
Positive Impact ◽  
Labour Productivity ◽  
Real Effective Exchange Rate ◽  
Series Data ◽  
Long Run ◽  
The Impact

One of the most pressing problems facing the South African economy is unemployment, which has been erratic over the past few years. This study examined the impact of economic growth on unemployment, using quarterly time series data for South Africa for the period 1994 to 2012.Johansen Co-integration reflected that there is stable and one significant long run relationship between unemployment and the explanatory variables that is economic growth (GDP), budget deficit (BUG), real effective exchange rate (REER) and labour productivity (LP). The study utilized Vector Error Correction Model (VECM) to determine the effects of macroeconomic variables thus REER, LP, GDP and BUG on unemployment in South Africa. The results of VECM indicated that LP has a negative long run impact on unemployment whilst GDP, BUG and REER have positive impact. The study resulted in the following policy recommendation: South African government should re-direct its spending towards activities that directly and indirectly promote creation of employment and decent jobs; a conducive environment and flexible labour market policies or legislations without impediments to employment creation should be created; and lastly government should prioritise industries that promote labour intensive. All this will help in absorbing large pools of the unemployed population thereby reducing unemployment in South Africa.

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