Abstract
ABSTRACT This research note aims to understand the impact of terrorist attacks on the peer-to-peer, short-term rental (P2P-STR) market. By utilizing Parisian Airbnb data, an event study analysis was conducted to understand how the P2P-STR market performance and demand changed after a significant terrorist attack in November 2015 in Paris. The results indicate a negative and significant impact of the severe terrorist attack on the P2P-STR lodging business in Paris, both on the market demand and the rental performance. Travelers and Airbnb hosts’ risk aversion may change their behaviour after the violence happened at the travel destination.
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