Location of Airbnb and hotels : the spatial distribution and relationships

Purpose: The purpose of this study is to compare the spatial distribution of Airbnb and hotels in London and examine the relationship between demographic, socioeconomic and environmental factors and the supply of these two types of lodging supply. Design/methodology/approach: Local information of Airbnb listings in London was collected through Insideairbnb.com. Gathered data were examined using geo-spatial auto-correlation analysis and spatial econometric models. Findings: The results indicate that Airbnb predominates in the areas around popular tourist attractions and the peripheral areas of the city, while in the downtown area Airbnb and hotels are in the state of coexistence. The mono-centric model and the agglomeration model could be extended to the context of peer-to-peer accommodation. The location of Airbnb and traditional hotels capitalizes on different factors. Research limitations/implications: The study is based on secondary data due to data availability. And, it is based on the case of London, so the findings may not reflect the situation of small cities and rural destinations. Practical implications: This study not only gives suggestions for local councils to regulate the location of hotels and Airbnb but also provides professional landlords with reference to choosing Airbnb location. Originality/value: This study extends the hotel location theoretical models into the context of Airbnb and sheds lights on the distinction between these two business models in terms of location factors.