Efficiency analysis of main European cities in the Airbnb market

Abstract

This study evaluates the performance of Airbnb listings in major European cities from December 2023 to June 2024. Using data from 30 countries, the DEA (Data Envelopment Analysis) model calculated efficiency scores, with Number of Listings, Monthly Average Revenue, and Occupancy Rate as variables. The Malmquist Index was used to measure productivity changes over time. Geneva, Prague, and Stockholm were identified as the most efficient cities, while Naples was the least efficient. Despite not being the most efficient, Copenhagen and Edinburgh frequently served as key benchmarks. The analysis also revealed that most cities experienced a productivity decline, though Malta showed notable growth. Limitations, including the short timeframe and quarterly data, suggest the need for further research to capture longer-term trends. The study highlights the need for adaptive strategies to remain competitive in the evolving short-term rental market.

Date of Award	4 Oct 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Akram Dehnokhalaji (Supervisor)