Drivers of Airbnb prices according to property/room type, season and location: A regression approach

Abstract

While past studies on Airbnb pricing highlight the importance of room features, host characteristics and location factors, little has been investigated about whether these factors are the same across different property/room types, locations and seasons. To fill that gap, this paper presents a study about the drivers of Airbnb prices in Bristol using ordinary least squares (OLS) and geographically-weighted regression (GWR) methods. The estimated models exhibit sharply different levels of goodness-of-fit, suggesting that the prices of different room types might not be explained by the same set of price factors. The results also uncover statistically significant differences between the price determinants of apartments and house listings and reveal spatial patterns in the price effects. These findings have implications for price setting and the assessment of competition. Future studies should account for potential differences across property/room types, as well as to consider the spatial variability of the estimated coefficients.

Sharing economy and dynamic pricing: Is the impact of Airbnb on the hotel industry time-dependent?

“…Due the growing relevance of the sharing economy in the hospitality industry, there has been a proliferation of studies trying to shed light on a number of issues related to this phenomenon, such as host pricing strategies (Gibbs et al, 2018a(Gibbs et al, , 2018bVoltes-Dorta and Sanchez-Medina, 2020), hosts-guests relationships (Casais et al, 2020;Apostolidis and Brown, 2021), trust, reputation, brand loyalty, and various antecedents and consequences of consumer behavior in sharing economy platforms (e.g., Ert et al, 2016Ert et al, , 2019Benoit et al, 2017;Liang et al, 2018;Lutz and Newlands, 2018;Mahadevan, 2018;Abrate and Viglia, 2019;Ert et al, 2019;Mody et al, 2019;Mao et al, 2020;Mody and Hanks, 2020;Suess et al, 2020;Xie et al, 2020;Xu and Gursoy, 2020;Lim et al, 2021;Pitt et al, 2021). Other studies have examined sharing economy regulation issues (Grimmer et al, 2019;Yang and Zhenxing, 2020;Yeon et al, 2020), as well as the effects of sharing economy entry on incumbents' profitability, survival, employment, and ability to secure investments (Zervas et al, 2015;Neeser, 2015;Fang et al, 2016;Zervas et al, 2017;Dogru et al, 2017;Hajibaba and Dolnicar, 2017;Blal et al, 2018;Heo et al, 2019;Li and Srinivasan, 2019;de Lange and Valliere, 2020;Sainaghi and Baggio, 2020;Mat...…”

Holiday Rentals in Cultural Tourism Destinations: A Comparison of Booking.com-Based Daily Rate Estimation for Seville and Porto

“…Typical accommodation characteristics that influence prices are distance to the beach, the city centre, tourism hotspots, train stations or airports (Castro and Ferreira 2018;Gunter and Önder 2018;Soler-García and Gémar-Castillo 2018), as well as reputational factors such as hotel brand, number of stars and customer ratings (Castro and Ferreira 2018;Soler-García et al 2019). Additional features affecting prices are hotel category; availability of a swimming pool, fitness centre or sport facilities (Castro and Ferreira 2018); pet admission (Santos et al 2021); spa; parking; accommodations' size (Chen and Rothschild 2010;Santos et al 2021;Voltes-Dorta and Sánchez-Medina 2020); the inclusion of a restaurant, bar or terrace; and room amenities such as Wi-Fi, television (TV), minibar or room service (Castro and Ferreira 2018).…”

“…A significant number of studies have found that property, host and location factors have the strongest impact on prices (Voltes-Dorta and Sánchez-Medina 2020). Significant property features usually include the number of beds, bedrooms and bathrooms (Fearne 2021;Gibbs et al 2018;Gunter and Önder 2018;Voltes-Dorta and Sánchez-Medina 2020) and online photos (Tong and Gunter 2020). Host characteristics, reputation, experience, responsiveness and 'superhost' status are specifically referred to in research on Airbnb (Gunter and Önder 2018;Voltes-Dorta and Sánchez-Medina 2020).…”

“…Significant property features usually include the number of beds, bedrooms and bathrooms (Fearne 2021;Gibbs et al 2018;Gunter and Önder 2018;Voltes-Dorta and Sánchez-Medina 2020) and online photos (Tong and Gunter 2020). Host characteristics, reputation, experience, responsiveness and 'superhost' status are specifically referred to in research on Airbnb (Gunter and Önder 2018;Voltes-Dorta and Sánchez-Medina 2020). Extremely important location factors for pricing holiday rentals are similar to those for hotels, namely, distance to the city centre, bus or train stations, airports, beaches or other hotspots (Gunter and Önder 2018;Gyódi and Nawaro 2021;Santos et al 2021;Toader et al 2021;Voltes-Dorta and Sánchez-Medina 2020).…”

Assessing the Effects of COVID-19 on Accommodations Availabilities and Prices

“…Various criteria can be found in the literature for analysing the trend of prices of accommodation facilities [7,8]. They can be grouped into the following categories: a) Seasonality; b) Spatial factor; c) e-wom; d) Influence of reviews; e) Combination of several factors.…”