Revenue Management Practices in Peer-to-Peer Accommodation: The Case of Airbnb

Abstract

Purpose: Revenue management (RM) practices are well established in the hotel industry. Peer-to-peer (P2P) accommodation is a distinctive alternative to hotels, which in its original intention, is managed by non-professionals. The main research question of this study was how the professionalism of P2P accommodation providers relate to their use of RM practices. Research method: I performed statistical analysis of 479,282 pricing records for 25,827 properties offered through Airbnb in the period of 67 months (August 2015 – February 2021) in Poland. Two indicators of hosts’ professionalism (the number of properties they manage and the possession of superhost status) were tested against three RM practices (cancellation policy, minimum stay, and dynamic pricing). Findings: This study clearly showed the intensification of P2P hosts’ professionalization in comparison to previous research. Moreover, it proved that professional and non-professional hosts’ behaviors significantly differ when it comes to RM practices application, but the discrepancies are not equally distinctive. The finding that brought a considerably different result in comparison to previous research was the negative relationship between a multi-unit host and minimum stay. Implications and future research: This study should serve as a warning for hoteliers about the P2P hosts’ professionalization, as they become equal competitors. There are several future extensions to this study, including holiday destinations, testing other than hosts’ professionalism variables, or shedding light on the evolution of RM practices application could reveal valuable insights. Originality: This study contributes to the existing research by offering the analysis of very recent longitudinal data and covering professional vs. non-professional P2P hosts’ behaviors in terms of three RM practices in Central-Eastern Europe settings.