Pricing a Motel’s Location

Abstract

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Key Factors Affecting the Price of Airbnb Listings: A Geographically Weighted Approach

“…Thus, the number of reviews (Reviews) and the ratings (Ratings) of Airbnb listings are categorized as explanatory variables in this study. "Age" can partly account for hotel pricing behavior [6]. In this study, the "Age" variable, namely, the duration of time since the listing was established, was selected as a factor affecting Airbnb listing prices.…”

“…Serval important factors affecting the hotel room price have been identified such as location [6,7], hotel category [32,33], customer ratings [34,35], hotel amenities and services [36,37], market accessibility [38], and proximity of competitors [33]. Previous empirical studies often employed a global regression model, considering only the relationship between hotel room price and explanatory variables on a global level.…”

“…Price is a vital topic in the hospitality industry [6], for a proper pricing strategy can lead a company or enterprise to the next level of financial success [8]. Price plays an important role in the shared economy in the hospitality industries such as Airbnb because price impacts guests' lodging selection and also significantly impacts hosts' profits [13].…”

“…Past studies have investigated numerous factors affecting hotel price, identifying a set of price determinants such as brand name, star rating, location, hotel age, number of rooms, amenities, and so forth [6][7][8][9]. Airbnb is a recent lodging concept that differs from traditional hotels in terms of booking systems, facilities, website designs, and customer service.…”

Measuring the effect of local competition on prices in a context of spatial differentiation

“…Therefore, the introduction of spatial variables may help to alleviate potential estimation bias by capturing heterogeneity from demands and costs. A representative case, where location has been acknowledged as the most essential attribute for consumers, is provided by the hotel industry (e.g., Bull, 1994). Evidence suggests that, in this industry, costs play a secondary role in hotel room pricing behavior (see, for example, Kotas, 1986).…”