Price and RevPAR determinants of Airbnb listings: Convergent and divergent evidence

Sainaghi, Ruggero; Abrate, Graziano; Mauri, Arnaldo

doi:10.1016/j.ijhm.2020.102709

Cited by 51 publications

(42 citation statements)

References 51 publications

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“…In line with related applications in the Airbnb rental market (e.g., Falk et al, 2019 ; Sainaghi et al, 2021 ), I propose a log-linear hedonic price regression as follows:

…”

Section: Methodsmentioning

confidence: 99%

Heterogeneous price adjustments among Airbnb hosts amid COVID-19: Evidence from Barcelona

Boto‐García

2022

International Journal of Hospitality Management

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COVID-19-induced travel restrictions have led to a sharp drop in Airbnb bookings. Confronted with a decrease in demand, hosts have implemented heterogeneous price responses. This study evaluates the different price adjustments developed by professional and non-professional hosts. Considering the city of Barcelona as the case study, I exploit monthly longitudinal data for 24,000 different Airbnb listings observed between June 2020 and April 2021. Using hedonic regressions with listing and neighbourhood fixed effects, I show that professional hosts have reduced prices to a greater extent, especially during the worst months of the pandemic. The findings support intertemporal price discrimination among professional hosts, which seem to adjust prices faster to meet demand and better adapt to market conditions.

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“…In line with related applications in the Airbnb rental market (e.g., Falk et al, 2019 ; Sainaghi et al, 2021 ), I propose a log-linear hedonic price regression as follows:

…”

Section: Methodsmentioning

confidence: 99%

Heterogeneous price adjustments among Airbnb hosts amid COVID-19: Evidence from Barcelona

Boto‐García

2022

International Journal of Hospitality Management

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“…The literature analyzing the determinants of a listing’s performance is particularly insightful. The identified price and, more generally, the performance antecedents (Sainaghi et al , 2020b) are usually considerably different when comparing hotels and Airbnb providers (Wang and Nicolau, 2017). These determinants influence the substitution threat among the two lodging segments (Xie et al , 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

Are mom-and-pop and professional hosts actually competing against hotels?

Sainaghi

Baggio²

2021

IJCHM

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Purpose This paper aims to examine the question of whether commercial, peer-to-peer accommodation platforms (Airbnb, in particular) and hotels are in fierce competition with each other with the possible presence of substitution threats, and compares the time series of the occupancy values across two supplier types. Design/methodology/approach The cities of Milan and Rome are used as case studies for this analysis. To assess the extent of synchronization, the series of Airbnb and hotels are transformed into a series of symbols that render their rhythmic behavior, and a mutual information metric is used to measure the effect. Findings The results show that Airbnb hosts and hotels have different seasonal patterns. The diverse occupancy trends support the absence of direct competition between Airbnb and hotels. The findings are consistent in the two analyzed cities (Milan and Rome). Interestingly, there are higher similarities between seasonal occupancy series of Airbnb listings in Milan and Rome, on one side, and hotels in Milan and Rome, on the other, than between Airbnb and hotels in the same city. Research limitations/implications The findings show a progressive de-synchronization (within mutual information) among the five groups of Airbnb hosts triggered by the rising professionalization degree. This result suggests the existence of a partial different business model for multi-listing hosts. Practical implications The study illustrates an absence of any substitution threat between Airbnb and hotels in both cities. This could have important consequences, especially for the pricing and revenue management policy. In fact, the higher the substitution threat, the higher the attention that Airbnb entrepreneurs should pay to the pricing strategy implemented by hotels, and vice versa. Originality/value This study sheds new light on the competition threat between Airbnb and hotels. In this study, hotels and Airbnb hosts appear as two very separate markets.

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“…Researchers have suggested pricing is one of the most important factors affecting the size of the suppliers in the sharing market [30][31][32]. The revenue of the platform in two-sided markets and social welfare depend critically on the number of suppliers, and supply size is involved in the long-term success of the sharing market [33].…”

Section: Price Interactions Between Professional and Nonprofessional Decision Makers And Market Outcomementioning

confidence: 99%

Investigating the Impact of Professional and Nonprofessional Hosts’ Pricing Behaviors on Accommodation-Sharing Market Outcome

Jia

Wang

2021

Sustainability

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Nonprofessional hosts in the P2P accommodation-sharing markets have been demonstrated to be inferior in pricing. The sharing market is increasingly recruiting more professional hosts but is bothered by the disharmony from nonprofessionals’ feelings of being cast aside in this drive. To respond to this practice and disharmony, we develop a modeling framework with price-sensitive customers and earning-based hosts to investigate how varying ratios of professional and nonprofessional hosts affect pricing and impact sharing-market outcomes according to contemporary and long-term success indicators. This study is one of the first attempts to examine whether more professional hosts as supply decision makers is more beneficial to the sharing market. Numerical experiments for model analysis led to two primary managerial implications. A high ratio of professional hosts does not necessarily maximize indicators of hosts’ earnings, platform’s profit, or supply size, indicators that measure the accommodation-sharing market’s contemporary and long-term success. In addition, the market improves with magnified differences in the unique features of two types of hosts and they can cater to customers’ experiences and expectations, differentiating the market positioning of the two types of hosts.

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Price and RevPAR determinants of Airbnb listings: Convergent and divergent evidence

Cited by 51 publications

References 51 publications

Heterogeneous price adjustments among Airbnb hosts amid COVID-19: Evidence from Barcelona

Heterogeneous price adjustments among Airbnb hosts amid COVID-19: Evidence from Barcelona

Are mom-and-pop and professional hosts actually competing against hotels?

Investigating the Impact of Professional and Nonprofessional Hosts’ Pricing Behaviors on Accommodation-Sharing Market Outcome

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