When Would Owners Decide to Block Their Properties? Deciphering the Airbnb Business Decisions with Transactional Data

Abstract

The sharing economy create a new model for the society to provide the properties with different status which is not be full-utilized by the host. Airbnb is a typical example, which allows the host to provide their rooms to the customers. Our work focus on the micro level to show the relation. Using the anonymous data of properties in New York City from Airbnb, we estimate the effects of properties status on market performance and supply behaviors. Our result shows that the higher daily rates would lead to higher booking numbers. However, the extra fee such as clean fee and Security Deposit will do negative effects on number of booking. Further more, Convince and information availability cause better performance. Supply behaviors will not be changed easily. However, we found that the weekend, higher price and lower annual revenues will lead to higher probability of block.