Demand-side constraints affecting consumer attitudes toward digital short-term rental platforms across five European countries: a signaling theory perspective

Abstract

Purpose: Given the rapid progress in digitalization, the essence of exchange has been reformulated with the help of digital platforms allowing a temporary access of ownership to the global travel industry. Drawing on signaling theory, this study analyzes the demand-side constraints influencing consumers’ attitudes toward digital short-term rental platforms through a cross-country analysis. | Design/methodology/approach: This study performs a cross-country segmentation analysis in five European countries (i.e. UK, Croatia, Italy, Turkey and Spain) by using survey data from 534 consumers and structural equation models. | Findings: The findings indicate that perceived risk and lack of service quality exert a significant influence on consumers’ attitudes, with distrust serving as a mediation mechanism. Digital short-term rental platform managers, hosts and policymakers should collaboratively implement trust-building strategies, including fostering third-party quality certifications, enhancing cancellation flexibility and ensuring the provision of transparent information with an intent to mitigate perceived risk and reduce distrust. | Originality/value: This study provides a timely contribution to the reshaping of consumer behavior and stimulates a discussion regarding the underexplored attitudes of customers who have not previously used digital short-term rental platforms and their important demand constraints, putting an emphasis on the signals with a dark side which could be interpreted differently from country to country.