Drivers of Price in City Destinations: Vienna

2017 ◽  
Author(s):  
Bernhard Andreas Hrobath ◽  
Friedrich Leisch ◽  
Sara Dolnicar
Keyword(s):  
Peer To Peer ◽  
Disruptive Innovations ◽  
Tourist Accommodation

Peer-to-peer accommodation networks have been described as disruptive innovations, as revolutions in tourist accommodation, where demand is driven by new factors such as living like a local, authenticity and meeting new people. If indeed reasons for trading on these networks are so fundamentally different, prices should reflect that. This chapter investigates what drives the price of Airbnb listings in Vienna, and asks whether these price drivers are indeed new, or whether they reflect those in established commercial accommodation.

The exhaustion of the herding effect in peer-to-peer accommodation

2020 ◽  
pp. 135481662094653
Author(s):  
Beatriz Benítez-Aurioles
Keyword(s):  
Utility Maximization ◽  
Peer To Peer ◽  
Herding Behavior ◽  
European Cities ◽  
The Future ◽  
Balanced Distribution ◽  
Reservation Policy ◽  
Tourist Accommodation

A significant reason for the concentration of demand in a subset of the supply in the peer-to-peer market for tourist accommodation is herding behavior, by which the decisions of the first guests are imitated by those who follow. This article proposes a profit- and utility-maximization microeconomic model and implements it with data of Airbnb listings corresponding to 10 European cities. Results show that the influence of each additional review is positive but decreasing, inducing a more balanced distribution of demand among offered accommodation and thus dampening the herding effect. Moreover, reservation policy—specifically, enabling the instant booking option—is a key to explain the initial push that accommodations need to be demanded now and, hence, to increase their possibilities of being demanded in the future.

What Airbnb Host Listings Influence Peer-to-Peer Tourist Accommodation Price?

2020 ◽  
Vol 44 (4) ◽  
pp. 597-623 ◽  
Author(s):  
Manojit Chattopadhyay ◽  
Subrata Kumar Mitra
Keyword(s):  
Hotel Industry ◽  
Hedonic Pricing ◽  
Peer To Peer ◽  
Pricing Strategy ◽  
Data Set ◽  
Multiple Regressions ◽  
Main Determinants ◽  
Tourist Accommodation

Recognizing that the pricing strategy of the newly emerging online shared accommodation industry would be different from that of the traditional hotel industry, this study attempted to identify the variables that are the main determinants of the peer-to-peer tourist accommodation price. Using a data set of Airbnb accommodation listings for Toronto, the study established a relationship between room pricing and various listing variables and identified a reduced number of listing attributes that influence the room price significantly. Focusing on a reduced number of important variables, Airbnb hosts can not only increase average profit but would also give tourists a better rental experience. Along with traditional multiple regressions approach, the study also applied two different approaches and found that the analysis of hedonic pricing using nonlinear and nonparametric approaches is quite promising.

How the peer-to-peer market for tourist accommodation has responded to COVID-19

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Beatriz Benítez-Aurioles
Keyword(s):  
Panel Data ◽  
Fixed Effects ◽  
Design Methodology ◽  
Peer To Peer ◽  
Content Type ◽  
Public Managers ◽  
Before And After ◽  
Tourist Accommodation ◽  
The Impact ◽  
Practical Implications

Purpose This study aims to analyze the COVID-19 pandemic’s impact on the peer-to-peer (p2p) market for tourist accommodation. Design/methodology/approach Using monthly panel data from Airbnb listings in 22 cities worldwide, the authors run a differences-in-differences analysis comparing the period of February–October 2020 to the previous year. Findings Besides a decline in accommodation supply, the pandemic made prices and demand fall in all cities significantly, after controlling for room characteristics, host traits, booking policies and individual fixed effects. There is also evidence of an alteration of the influence on prices of certain variables such as superhost and instant booking. Research limitations/implications The main limitations are related to the reference spatial and temporal environment. Besides, the samples are limited to listings that stayed before and after the pandemic; therefore, it is possible that the real effect on review growth and/or prices is actually more negative. Practical implications The analysis performed shows a scenario that represents an opportunity for public managers to test more imaginative regulations that overcome the limitations of those implemented so far. Likewise, hosts who aspire to make their accommodations profitable must adapt to the conditions imposed by the economic environment of the cities in which they operate. Originality/value This is the first study to econometrically estimate the impact of COVID-19 on prices in the p2p market for tourist accommodation in a set of cities worldwide.

Seasonality in the peer-to-peer market for tourist accommodation: the case of Majorca

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Beatriz Benítez-Aurioles
Keyword(s):  
Social Preferences ◽  
Theoretical Models ◽  
Peer To Peer ◽  
Public And Private ◽  
Content Type ◽  
Academic Level ◽  
New Ideas ◽  
Supply Planning ◽  
The One ◽  
Tourist Accommodation

PurposeThe purpose of this paper is to verify the hypothesis that seasonality in the peer-to-peer (p2p) market for tourist accommodation is smaller than the existing in conventional markets, taking the case of the island of Majorca as a reference. This paper will also determine the role of professional hosts in the management of prices and in the marketing of accommodation according to seasonal demand variations.Design/methodology/approachFrom the information obtained through web scrapings of Airbnb listings and from data provided by official statistics, comparable indicators of seasonality are developed. Likewise, econometric estimates are provided to detect differences regarding the determination of accommodation prices between professional and nonprofessional hosts.FindingsThe p2p market is less subject to seasonality than the conventional one. In the particular case of Palma de Majorca, fluctuations in accommodation demand are even smaller than in the rest of the island's municipalities. Professional hosts apply marketing techniques related to price and product promotion and are sensitive to demand variations altering prices and responding to the economic stimuli in this way. At an academic level, these findings suggest, on the one hand, the relevance of considering the heterogeneity of the touristic market when constructing theoretical models. And, on the other hand, basic economic principles should be applied to explain agent behavior in the p2p market.Research limitations/implicationsThis work does not use a direct demand measurement. Instead, it approximates demand through the reviews left by guests in p2p markets. At least in the case of the island of Majorca, the touristic demand represents a reduced percentage of touristic demand in total.Practical implicationsSo far, both public and private strategies to combat seasonality have focused on increasing occupancy in conventional accommodation. Still, the fact that hotel demand and private accommodation demand are different has relevant implications for price management, touristic products, supply planning and the implementation of marketing campaigns. Also, advertising could be aimed at alleviating the undesirable effects of seasonality.Social implicationsThe evidence presented helps the design of public policy strategies aimed at mitigating the problem of seasonality in touristic demand to accommodate it to social preferences in each area.Originality/valueThis is the first piece of research, as far as we are aware of, that addresses the phenomenon of demand seasonality in the p2p market for tourist accommodation. In addition, a comparison is made with the seasonal patterns that characterize the conventional hotel market. New ideas are provided for the design of a comprehensive touristic policy in which both markets are considered.

Barcelona’s peer-to-peer tourist accommodation market in turbulent times

2019 ◽  
Vol 31 (12) ◽  
pp. 4419-4437 ◽  
Author(s):  
Beatriz Benítez-Aurioles
Keyword(s):  
New York ◽  
Fixed Effects ◽  
Terrorist Attack ◽  
Peer To Peer ◽  
Control Group ◽  
Content Type ◽  
Fixed Effects Regression ◽  
Sociopolitical Instability ◽  
Tourist Accommodation ◽  
The Impact

Purpose The purpose of this paper is to assess the impact of sociopolitical instability on the peer-to-peer market for tourist accommodation. Design/methodology/approach The author studies for the case of Barcelona the impacts of the events occurring in the past months of 2017, which consisted of a terrorist attack and the calling for a referendum on the independence of Catalonia, by fitting a fixed effects regression model to a data panel of Airbnb listings, using New York and Paris as a control group. Findings The results show that, after controlling for individual and time effects, listing reviews and revenues fall in the last quarter of 2017 and do not recover until the second quarter of the next year, in spite of a notable effort to decrease prices in the same period. They also indicate that peer-to-peer hosts react fast to demand shocks and as those from traditional markets. Originality/value This is the first study to evaluate the impact of terrorism or political uncertainty in the peer-to-peer market and the first to evaluate their combined effect in any market.

The role of distance in the peer-to-peer market for tourist accommodation

2017 ◽  
Vol 24 (3) ◽  
pp. 237-250 ◽  
Author(s):  
Beatriz Benítez-Aurioles
Keyword(s):  
Least Squares ◽  
Price Elasticity ◽  
Peer To Peer ◽  
Explanatory Model ◽  
Least Squares Regression ◽  
Two Stage ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand ◽  
Tourist Accommodation

This article provides evidence on the concentration of peer-to-peer tourist accommodations in the center of cities and the role of distance. On that basis, an explanatory model is proposed to understand the locating decisions of the different agents involved. The model is empirically implemented through a two-stage least squares regression, which allows estimating the elasticity of demand with respect to price and distance. Results for the Spanish cities of Barcelona and Madrid confirm similar price elasticity of demand in both (2.2 and 2.4, respectively) but greater sensibility of demand with respect to distance to the center in the former.

scholarly journals Impacts of the peer-to-peer market on tourist accommodation on the Balearic Islands of Mallorca and Menorca

2020 ◽  
Vol 15 (2) ◽  
pp. 353-370
Author(s):  
Beatriz Benítez-Aurioles
Keyword(s):  
Spatial Distribution ◽  
Case Studies ◽  
Peer To Peer ◽  
Balearic Islands ◽  
Market Development ◽  
Urban Structure ◽  
Degree Of Maturity ◽  
Tourist Accommodation

Using the Balearic Islands of Mallorca and Menorca as case studies, this research identifies the patterns of development in the peer-to-peer market for tourist accommodation in the islands. Characteristics of this market include the predominance of the supply of entire homes and the concentration of demand in a few accommodations, as well as the remarkable unequal spatial distribution in the existing urban structure and the aggravation of problems related to seasonality. Nevertheless, the different degree of maturity of each market differs in the two cases. The results show hotel occupancy suffers from the intensification of tourist housing, independent of hotel category, or of the growth of demand in the peer-to-peer market, while tourism employment increases. These results suggest the impacts are evident beyond some threshold of tourism market development.

Sign in / Sign up

Export Citation Format

Share Document