Determinants of Airbnb demand in Vienna and their implications for the traditional accommodation industry

Abstract

This study identifies key determinants of Airbnb demand and quantifies their marginal contributions in terms of demand elasticities. A comprehensive cross-sectional data set of all Viennese Airbnb listings that were active between July 2015 and June 2016 is examined. Estimation results, which are obtained by cluster-robust ordinary least squares, show that Airbnb demand in Vienna is price-inelastic. Significant positive drivers include listing size, number of photos, and responsiveness of the host. Significant negative drivers include listing price, distance from the city center, and response time of the host. Implications for the traditional accommodation industry are that, on the one hand, it should better communicate its sought-after advantages (e.g. lower average minimum duration of stay). On the other hand, it should increase its offer of bigger and better equipped hotel rooms since hosting more than two guests at a time is one of the major benefits of Airbnb.

The dark side of the sharing economy: Balancing value co‐creation and value co‐destruction

“…Charging lower prices, avoiding paying tax and employing no staff enabled sharing economy hosts to “steal” hotel customers (Dogru, Mody, & Suess, 2017; Forgacs & Dimanche, 2016; Xie & Kwok, 2017). Since the regulations and legislation have been quite minimal in requirements, taxation, safety, and documentation, many hoteliers feel that the sharing economy distorted competitive forces by reducing demand and forcing prices to collapse (Forgacs & Dimanche, 2016; Gunter & Önder, 2018; Koh & King, 2017). Eradicating the dark side of the sharing economy and ensuring ubiquitous value co‐creation requires balancing the desires and values of all stakeholders, and the creation of harmony (Hadinejad, Moyle, Scott, Kralj, & Nunkoo, 2019).…”

Current state and development of Airbnb accommodation offer in 167 countries

“…Just as the accommodation offers and hosts, so the guests to Airbnb homes and rooms differ in their motivations and backgrounds. Low cost, property qualities (large apartments suitable for families, household amenities, pet friendliness), novelty seeking, authenticity and social interaction were identified as important motives for staying with Airbnb (Gunter & Önder, 2018;Guttentag, Smith, Potwarka, & Havitz, 2018;Farmaki, 2019;Zhang, Cui, Cheng, Zhang, & Li, 2019). However, Tussyadiah (2016) noticed that social contacts are only important for those who rent rooms, not entire apartments.…”

The Future of Hospitality: Impacts of Disruptive Hospitality Models in the Traditional Market

“…Entretanto, existe uma preocupação dos autores ao afirmar que os hotéis aparentemente menos afetados pelo crescimento do Airbnb podem estar cometendo um erro ao não serem cautelosos (Blal et al, 2018;Varma et al, 2016). Para Forgacs e Dimanche (2016), há um movimento do Airbnb rumo aos segmentos de luxo e de negócios, como a aquisição da empresa de alugueis de temporada Luxury Retreats (Gunter & Onder, 2018), a fim de diversificar os seus produtos e de reforçar seu novo slogan: Airbnb para todos (Gebbia, 2016). Os desdobramentos desta movimentação do Airbnb são discutidos mais à frente, na seção 3.8.…”

“…A proposta da economia compartilhada inclui algumas dificuldades de mensuração enquanto um negócio de fato e de direito: os fatores de regulamentação. Esta problematização vai além de questões de taxas e impostos, talvez a controvérsia mais debatida a respeito do modelo (Mody et al, 2017b;Varma et al, 2016), mas também compreende questionamentos acerca da hospedagem compartilhada em sua essência (Belk, 2014;Gunter & Onder, 2018;Guttentag, 2015;Prayag & Ozanne, 2018).…”

“…Questão importante é a quebra do princípio de capacidade ociosa, um dos pilares da economia compartilhada segundo Botsman e Rogers (2011): proprietários de imóveis têm evitado inquilinos a fim de disponibilizar o espaço para aluga-lo pelo Airbnb -modalidade inclusive ilegal em muitas cidades -, o que afeta diretamente disponibilidade e preços do mercado imobiliário local (Gunter & Onder, 2018;Gutiérrez, García-Palomares, Romanillos, & Salas-Olmedo, 2017;Guttentag, 2015;Gyódi, 2017). Outros estudiosos questionam se a economia compartilhada sequer é de fato compartilhada, e se o que se chama de inovação disruptiva é de fato disruptiva Branco, R. .…”