The effects of airbnb on hotels in Norway

Abstract

This paper examines the effects of Airbnb on the Norwegian hotel market, using correlational design and the difference-in-differences statistical method. The findings show that hotels in the regions of Norway where Airbnb is flourishing have more guests than the regions with less Airbnb activity. In addition, it seems that Airbnb has a positive effect on the hotel market in Norway. However, as the Airbnb expansion continues, and it diversifies into the ‘travel business’ and the ‘luxury accommodation’ segment, it will affect the hotel industry. How the hotel industry will respond to this threat remains to be seen, and will provide an interesting subject for future research.