Airbnb Market Strategy Impact: A Comparative Analysis between High and Low Population Density Areas in Lisbon in the 2019-2022 Period

This study compares areas with high and low population densities to investigate the effect of COVID-19 on Airbnb profits in Lisbon. Using a quantitative methodology incorporating data from 2019 to 2022, it also looks at how Airbnb's marketing strategies—like its moderate cancellation policies and rapid booking options—affect hosts' economic recovery in different density situations. The results indicated that during the most crucial stage of the pandemic, low-density areas had more resistance than densely populated ones. For instance, flexible cancellation rules worked better in low-density locations. On the other hand, instant booking, by facilitating last-minute planning, benefited both low—and high-density areas, although its effect was more pronounced in less dense areas. This article presents an alternate perspective by acknowledging that population density plays a critical role in the recovery and profitability of short-term rental platforms during times of crises. The findings indicate that Airbnb and similar platforms may be better able to withstand and respond to future crises if they consider the density of their operating areas. The findings also offer hosts, platform management, and tourist policy decision-makers insightful information.