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.