Abstract
The main aim of this study is to assess the impact of Airbnb listing attributes on price. Pricing is widely acknowledged to be one of the most critical factors determining the long-term success of the accommodation industry (Hung et al., 2010). The study has applied OLS regression in assessing the relationship between price and its determinants.The study has shown that there exist significant impacts of the variables on price. The variables such as number of beds, number reviews, room type dummies, property type dummies and neighborhood dummies have shown the impact of prices for the New York City, supported by Wang and Nicolau (2017), Portolan (2013), and Dogru and Pekin (2017).In supplementing OLS results the study has employed variance-weighted least square and feasible generalized least square which they possess stronger estimation properties than OLS.The results of this research provide instructions and direction to main tourism stakeholders and policymakers, and at the same time assist facility owners in shaping prices helping them to create instruments for future planning.
Highlights
Sharing economy has significant importance in the growth of the economy in the apartment sector; the world economy has witnessed increased demand for housing/accommodation due increased global business as well the growth of the tourism industry worldwide
The study has shown that there exist significant impacts of the variables on price. The variables such as number of beds, number reviews, room type dummies, property type dummies and neighborhood dummies have shown the impact of prices for the New York City, supported by Wang and Nicolau (2017), Portolan (2013), and Dogru and Pekin (2017)
The number of recording data was removed from our analysis because of high collinearity with explanatory variables included in the model. 30
Summary
Sharing economy has significant importance in the growth of the economy in the apartment sector; the world economy has witnessed increased demand for housing/accommodation due increased global business as well the growth of the tourism industry worldwide. The general economic theory claims that the price, in the absence of market failures should be a valid economic signal that helps customers make informed decisions, since it includes information regarding the quality of a good or a service (Leoni & Nilsson, 2020) Airbnb is a home-sharing platform that permits home-owners and renters (“hosts”) to put their possessions (“listings”) online, so that lodgers can pay for lodging in The owners set their own prices for their listings, and though Airbnb and other sites arrange for particular guidance, at present there is no free and precise services that can assist hosts to price their properties using a wide variety of data points. The emergence of online platforms and the smartphone revolution have drastically changed its scale (Guttentag, 2015)
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