Disruption in hospitality: Spillover effects of Airbnb's IPO on hotel and casino stocks

This study examines the spillover effects of Airbnb's initial public offering (IPO) on the stock performance of traditional hospitality firms, specifically hotel chains and casino operators. Using a Structural Vector Auto-Regression (SVAR) model, we analyze daily stock returns and closing prices from January 2021 to May 2023 to examine the interconnectedness between Airbnb and traditional hospitality stocks. Our findings reveal significant short-term spillover effects, with hotel stocks displaying greater sensitivity to Airbnb's performance than casino stocks. Variance decomposition and impulse-response functions highlight the temporary nature of these impacts, reflecting cyclical investor sentiment patterns that stabilize within a few periods. The study confirms Airbnb's disruptive influence on traditional hospitality markets while offering insights into established players' resilience and adaptive strategies. This research contributes to the literature on disruptive innovation and provides technical implications for managing market volatility and enhancing competitiveness in the hospitality industry.