Demand-Side Constraints Affecting Consumer Attitudes Toward Digital Short-Term Rental Platforms Across Five European Countries: A Signaling Theory Perspective

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 analyses the demand-side constraints influencing consumers’ attitudes towards digital short-term rental platforms through a cross-country analysis. 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. 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. This study provides a timely contribution to the reshaping of consumer behaviour 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.