Airbnb Accommodation Research Articles

Tourism innovation through relationship marketing and value co-creation: A study on peer-to-peer online platforms for sharing accommodation

This paper discusses tourism innovation developed by hosts of sharing accommodation, based on the outcomes of guests’ value co-creation. In this process, relationship marketing is a central aspect of peer-to-peer business models, analysed as a catalyst of innovation.The authors conducted thirty in-depth interviews with Portuguese hosts of Airbnb accommodations in order to understand the integration of guests’ value co-creation through relational mechanisms in the innovation of their businesses.The results evidence that it is established a close relationship marketing with guests during their stay. This fact is considered critical for the co-creation of the tourism experience and to increment innovation in the accommodation services. The main innovation outcomes are incremental and connected to the provided facilities, amenities and partnerships with other businesses. This happens not only through the user generated contents of online reviews, but also with the constant interpersonal contact established between guests and hosts.

Modeling Airbnb demand to New York City while employing spatial panel data at the listing level

Using spatial panel data comprising a cross section of 1,461 continuously active Airbnb listings obtained from AirDNA, as well as time series data from NYC and Company and the OECD covering the time period September 2014 to June 2016, the present study quantifies own price, cross price, and income elasticities of Airbnb demand to New York City within an empirical tourism demand framework. The particular goal of the study is to establish whether the relationship between Airbnb and the traditional accommodation industry is of a substitutional or of a complementary nature. Employing a one-way fixed-effects spatial Durbin model, it can be concluded that demand is price-inelastic for Airbnb accommodation in New York City, which is a luxury good, and that the city's traditional accommodation industry as well as neighboring Airbnb listings are substitutes for the investigated Airbnb listings. The estimation results are robust against several alternative specifications of the regression equation.

The role of specific attributes in determining prices of Airbnb listings in rural and urban locations

This paper investigates the determinants of the Airbnb accommodation prices in rural and urban locations in Switzerland for the period 2016-2018. For the empirical analysis, 40 measurable attributes are considered, which are listed in the title description. Random effect models and quantile regressions show that the attributes that are most important for prices are luxury and penthouse, allowing between 20 and 70 per cent higher prices depending on the location and price level. Accommodations with attributes chic & designed, duplex, sauna, Jacuzzi & Spa, suite and unique in the title are also associated with higher prices. However, the role of the different attributes in determining prices of Airbnb listings differ across locations. Location specific characteristics mentioned in the title are not significantly related to prices (except ski and old town). Quantile regressions show that relevance of some quality attributes is higher for high-price offers than for low priced accommodations.

Spend less and experience more: Understanding tourists’ social contact in the Airbnb context

Emerging Airbnb accommodations provide a unique sharing economy platform where tourists can co-create their travel experiences with different participating groups. However, limited research has been conducted to understand the social contact of guests in the Airbnb accommodation. This study explores the social contact of Airbnb guests during their stay and identifies three types of contact during such stay, namely guest–host, guest–community, and guest–guest contacts. In each contact, the contact activities, intensity, and impacts, as well as attitude toward contact are discussed. A social contact model for Airbnb guests is then established. Theoretical and practical implications are provided accordingly.

On the determinants of Airbnb location and its spatial distribution

This article explores Airbnb accommodation spatial distribution and it estimates the main determinants of its location choice. It employs spatial bivariate correlations and spatial econometrics to understand the heterogeneous spatial relationship between established hotels and Airbnb for three kinds of local tourism destinations: sun and beach, nature-based, and city. The case study concerns the Canary Islands where a good mixture of these attractions can be found. The main conclusion drawn is that Airbnb regulation needs to distinguish the kind of tourism. More precisely, Airbnb supply overlaps established hotels in city tourism, but it does not so clearly in sun and beach nor nature-based destinations. Airbnb supply matches tourist visits spatial distribution better than established hotels in city and nature-based destinations, but not in sun and beach destinations, where the incumbent hotels are closer to the tourism resources. Finally, the results from the spatial econometrics model shows that population size and the number of tourist visits matters as determinants of Airbnb location. However, the main determinant is price, which has got a much larger elasticity.

The What, Where, and Why of Airbnb Price Determinants

Breakthrough changes in the rental market have occurred with the introduction of peer-to-peer accommodation services such as Airbnb. This phenomenon is attracting tourists who contribute to the sustainability of local trade and the economic development of the city. This research enriches the current debate on the range of factors that influence Airbnb accommodation prices. To that end, a method was developed to understand the relationship between Airbnb accommodation attributes and listing prices; and to consider variables related to the properties’ location and surrounding urban environment, considering the touristic characteristics of the four Spanish Mediterranean Arc cities selected as case study. A multivariable analysis technique is used for estimating a hedonic price model that adopts the ordinary least squares and the quantile regression methods. The findings obtained for the impact of location on listing prices are contrary to previous studies. In fact, accommodation prices increase incrementally by 1.3% per kilometer from the tourist area, which in all four cases are situated in the historic area of the city. However, at the same time, accommodation prices decrease incrementally as distance from the coastline increases. Lastly, results related to how the listings’ accommodation, host, and advertising characteristics impact Airbnb prices concur with previous studies.

Spatial price dependencies between the traditional accommodation sector and the sharing economy

The emergence of peer-to-peer (P2P) accommodation (e.g. Airbnb) has steadily increased the pressure on the traditional accommodation sector. Although Airbnb listings are perceived as being more affordable than hotels, this has not yet been conclusively demonstrated. Therefore, the aim of this study is to investigate whether significant price dependencies exist between the Airbnb and traditional accommodation sectors and to analyze the underlying pricing strategies. For this purpose, the Estonian capital city of Tallinn is used as a case example. Airbnb data, prices and locations of hotels in Tallinn, as well as spatial information such as distance to points of interest (POIs), and so on, are used in hedonic price regression models. The results show that Airbnb pricing positively depends on characteristics of the listing and the number of POIs within an optimal 650 m radius, which is obtained from a simulation study. Also, prices of hotels and of other Airbnb listings within the same radius positively impact Airbnb listing prices. Finally, Airbnb accommodations are shown to indeed be the more affordable alternative.

Accommodation prices on Airbnb: effects of host experience and market demand

PurposeAccommodation sharing is a major trend shaping the hospitality industry, and Airbnb is the most prominent sharing platform driving this growth. While price convenience is reported as one of the main strengths of Airbnb accommodations, only a few studies have examined price determinants. In particular, it is unclear whether hosts dynamically adjust prices for shared accommodation based on their experience with price management and on the level of market demand. The purpose of this paper is to fill this gap by suggesting and testing a comprehensive hedonic pricing model.Design/methodology/approachData from all 1,056 Airbnb listings for accommodations available in the city of Verona, Italy on four booking dates in 2016 are collected and analysed through regression analysis.FindingsThe results highlight that price is significantly related to the level of the host’s accumulated experience and the level of market demand on a specific booking date. The findings provide support for the ability of hosts to dynamically adjust prices for their accommodations.Practical implicationsDrawing on the innovator’s dilemma theory, this study suggests some strategies that traditional hotels may adopt to react to the disruptive nature of Airbnb.Originality/valueThis is one of the few studies to address hosts’ pricing strategies and specifically consider price adjustments owing to variations in host experience and market demand.

The False Promise of the Sharing Economy

A brief review of historical antecedents and contemporary examples of genuine sharing demonstrates that what we currently call “the sharing economy” is misleadingly named. Its disruptive effects on labour and non-labour markets is reviewed and possible strategies are suggested for resolution of the “classification problem” (are Uber drivers “employees”? is AirBnB accommodation a “hotel”?). Finally, the broader issues of political economy raised by the advent of the sharing economy are canvassed — including whether capitalism can survive the dislocations this new technology-driven, regulation-subverting approach to the provision of goods and services is inflicting on consumers, workers and small enterprises.

CARACTERÍSTICAS Y EVOLUCIÓN DE LA OFERTA DE ALOJAMIENTO DE AIRBNB EN UNA CIUDAD PATRIMONIO CULTURAL DE LA HUMANIDAD. CASO CUENCA (ECUADOR)

Actualmente han surgido modelos de negocio innovadores en cuanto a su operación, a través de medios de gestión electrónica, como Airbnb (alojamiento), están presentes casi en todo el mundo, bajo la denominación de economía colaborativa, tienen predilección por ubicarse en asentamientos urbanos consolidados como centros históricos; Cuenca, Patrimonio Cultural de la Humanidad no es la excepción. No obstante, generan incomodidad a los modelos de negocio tradicionales y menoscaban la autenticidad, integridad y valores patrimoniales de los bienes culturales edificados en virtud de una probable sobreoferta de alojamiento. Este estudio de tipo descriptivo se realizó mediante la recopilación de datos históricos (2010 - 2017) de la oferta de Airbnb (página web) para Cuenca, y, tiene como objetivo, poner en contexto las características y evolución de este tipo de oferta en un contexto de ciudad patrimonial, teniendo como resultado una tendencia a la concentración de este tipo de establecimientos en áreas históricas y patrimoniales; además se evidencia una tendencia decreciente de las tarifas frente a una presión a la reducción de los precios de los establecimientos regulados. Este fenómeno tiene efectos más allá del turismo, por lo que es alarmante la falta de políticas de control y regulación por parte del sector público, la desidia en torno a la innovación por parte del sector privado, la falta de estudios y el menoscabo del patrimonio cultural edificado y la vivienda en relación al incremento de una oferta informal.

Unraveling the diverse nature of service quality in a sharing economy

PurposeThis paper aims to investigate customers’ perceptions of the service quality facets of Airbnb accommodation using social exchange theory as a suitable conceptual framework to explain aspects of interactivity between guests and hosts.Design/methodology/approachA self-administered questionnaire consisting of 25 accommodation-specific service quality attributes, structured according to Akbaba’s (2006) measurement scale and based on the service quality hierarchical conceptualization described by Brady and Cronin (2001) and Cronin and Taylor (1992), was distributed to Airbnb international guests visiting Phuket, Thailand. The sample was chosen through a two-stage sampling process and the PLS-SEM technique was used for data analysis.FindingsThe results showed that convenience and assurance are critical contributors to the measurement of service quality in remote Airbnb lodgings. The findings further revealed that Airbnb guests are mainly interested in lodgings which have access to certain tourist sights, and in easily accessible information and efficient resolution of problems during their stay. The authors also found that guests greatly value the convenience and flexibility offered by Airbnb, and that they particularly appreciate the warm hospitality provided by the hosts. Finally, Airbnb guests have very low expectations of the amenities and services available at the lodgings.Research limitations/implicationsAirbnb is one of the most well-known examples of hospitality in the sharing economy, and results cannot be generalized to similar accommodation providers in sharing economies. Despite the appropriateness of using the measurement tool provided by Akbaba (2006), it is only one option among others for measuring service quality.Practical implicationsThe current study can assist hosts in gaining better knowledge of guests’ decision-making processes and in designing effective marketing strategies by focusing on guests’ requirements in terms of service quality. The effective use of competitive strengths and the prioritization of business resources would potentially enhance guests’ positive experiences at the accommodation and at the destination.Originality/valueLimited numbers of studies have focused on the sharing economy and hospitality and in particular on Airbnb, and this is the first study with a focus on service quality issues in terms of Airbnb accommodation.

Service quality, satisfaction, and customer loyalty in Airbnb accommodation in Thailand

AbstractThis paper investigates service quality, customer satisfaction, and loyalty in Airbnb accommodation. A self‐administered questionnaire was distributed to a nonprobability sample of 202 international tourists in Phuket, Thailand, which is one of the top tourist destinations worldwide. The results verify that a positive relationship among service quality, customer satisfaction, and loyalty exists and that satisfaction partially mediates the relationship between service quality and loyalty. Furthermore, the paper suggests key steps managers could take to enhance customer experience in a way that would benefit the lodging industry and the destinations.

Why Tourists Choose Airbnb: A Motivation-Based Segmentation Study

Airbnb has grown very rapidly over the past several years, with millions of tourists having used the service. The purpose of this study was to investigate tourists’ motivations for using Airbnb and to segment them accordingly. The study involved an online survey completed in 2015 by more than 800 tourists who had stayed in Airbnb accommodation during the previous 12 months. Aggregate results indicated that respondents were most strongly attracted to Airbnb by its practical attributes, and somewhat less so by its experiential attributes. An exploratory factor analysis identified five motivating factors—Interaction, Home Benefits, Novelty, Sharing Economy Ethos, and Local Authenticity. A subsequent cluster analysis divided the respondents into five segments—Money Savers, Home Seekers, Collaborative Consumers, Pragmatic Novelty Seekers, and Interactive Novelty Seekers. Profiling of the segments revealed numerous distinctive characteristics. Various practical and conceptual implications of the findings are discussed.

Assessing Airbnb as a disruptive innovation relative to hotels: Substitution and comparative performance expectations

Millions of tourists have used Airbnb accommodations, and Airbnb is frequently discussed in terms of its current or future impacts on hotels. The purpose of this research was to investigate such impacts by determining the extent to which Airbnb is used as a hotel substitute and to examine how Airbnb guests expect their accommodations to perform relative to hotels. Together, these analyses were intended to provide empirical insight into Airbnb’s status as a disruptive innovation. The study involved an online survey of over 800 tourists who had used Airbnb within the previous year. Nearly two-thirds had used Airbnb as a hotel substitute. When considering traditional hotel attributes (e.g., cleanliness and comfort), Airbnb was generally expected to outperform budget hotels/motels, underperform upscale hotels, and have mixed outcomes versus mid-range hotels, signalling some – but not complete – consistency with the concept of disruptive innovation. Numerous practical and theoretical implications are discussed.

Be a “Superhost”: The importance of badge systems for peer-to-peer rental accommodations

Many sharing-economy websites like Airbnb that offer vacation-rental options for travelers are very popular. However, few studies targeting the vacation-rental industry have investigated online reviews. To narrow this gap, this study focuses mainly on the gamification design developed by Airbnb that awards a “Superhost” badge to hosts who receive good reviews and observes how this can impact an accommodation's review volume and ratings. All available information regarding Airbnb accommodation offered in Hong Kong was retrieved from Airbnb's website. We then constructed a negative binomial model and a Tobit model with different independent variables and controlled a set of variables relating to accommodation characteristics. The results show that an accommodation with the “Superhost” badge is more likely to receive reviews and higher ratings. In addition, guests are willing to spend more on “Superhost” accommodations. Based on our findings, we present implications for research and host practice.

When Tourists Move In: How Should Urban Planners Respond to Airbnb?

Problem, research strategy, and findings: The online accommodation platform Airbnb has expanded globally, raising substantial planning and regulatory concerns. We ask whether Airbnb rentals generate significant neighborhood impacts like noise, congestion, and competition for parking; reduce the permanent rental housing supply and increase rental prices; or provide income opportunities that help “hosts” afford their own housing. We focus on Sydney, the largest region in Australia with 4.4 million people in 28 individual municipalities, which has experienced both rapidly rising housing costs and exponential growth in Airbnb listings since 2011. Airbnb’s growth has raised concerns serious enough to result in a formal Parliamentary Inquiry by the state of New South Wales. We analyze stakeholder submissions to this inquiry and review local planning regulations, Airbnb listings data, and housing market and census statistics. We find that online homesharing platforms for visitor accommodations blur traditional boundaries between residential and tourist areas so Airbnb listings may fall outside of existing land use regulations or evade detection until neighbors complain. Our findings are constrained by the difficulties of monitoring online operations and the rapid changes in the industry.Takeaway for practice: Planners and policymakers in cities with increasing numbers of Airbnb rentals need to review how well local planning controls manage the neighborhood nuisances, traffic, and parking problems that may be associated with them while acting to protect the permanent rental housing supply. Local planners need to ensure that zoning and residential development controls distinguish between different forms of short-term Airbnb accommodation listings and their potential impacts on neighborhoods and housing markets.

The Rise of the Sharing Economy in Tourism: Exploring Airbnb Attributes for the Veneto Region

In just a couple of years, the sharing economy grew out to become a significant segment of the holiday accommodation market. Online peer-to-peer marketplaces allow people to offer rooms or entire houses to tourists, with Airbnb being the biggest and most famous example. This paper aims to give an insight into explaining which factors and attributes influence the success of Airbnb accommodations in the Veneto Region, using occupancy as a proxy. We analysed characteristics of 19624 Airbnb accommodations. The logistic regression model identifies a number of influential attributes which can be divided between locational characteristics, being located in attractive tourism destinations, and accommodation characteristics, for example the price, rating, number of previous bookings and the status of the host. The quantitative analysis allows to create an attractiveness scale, which is analysed for geographic patterns.

The Australian Experience of Legislated Pre-Action ADR Requirements: Specificities, Acceptation, and Keys to Success

Mediation is now well-established in Australia particularly in the commercial jurisdictions of the states and territories. However it is still viewed as an unwelcome visitor by many in the legal profession and the judiciary. This is reflected in the fact that commercial mediations generally take place at the later stages of the dispute. This translates into a process that is directive, evaluative and solution focused. The legal profession is comfortable with this approach because it has a marked similarity to the adversarial litigation process. The legislated pre-litigation ADR initiatives are designed to pressure lawyers into mediating much earlier in the litigation cycle. This requires a different mediation style, one that is relationship based and facilitative with more of a focus on the soft skills of the mediator.Part of the motivation for earlier mediation is cost efficiency, but at a more fundamental level, it is a reflection of the fact that we are living in changing times especially in the commercial world. There has been a fundamental shift towards a more collaborative management style within corporations and the rise, especially recently, of the “collaborative economy” as evidenced by the Uber ride-sharing and Airbnb accommodation platforms. It is the speed of change together with the relationship complexity of modern commercial activity that will have the most impact on the slow, adversarial and expensive traditional judicial approach to resolving conflict. Early relationship-based mediation can be the pathway for commercial lawyers and the 19th century judicial processes to move into and play a respected part in the new 21st century collaborative commercial economy.The legislative directive to engage in early mediation challenges the traditional adversarial style of negotiating. The main challenges are: a. Expanding the definition of mediation to include an early pre-mediation conference with each party and their lawyer; b. The value to the process and outcome of the mediator assisting in the facilitation of discovery. This is one of the greatest challenges for mediators as lawyers are often unwilling to bring in a mediator until after discovery has been completed; c. Recognising and valuing the soft skills of the mediator. The art of influencing the parties in the early stages of the negotiation is achieved by avoiding any talk about the parties’ hard positions, possible outcomes and the law. It is at the level of non-contentious pre-mediation administrative functions that mediators see parties with their guards down, often revealing their true underlying needs and desires. While legal advice is vital the decision to compromise and to say “yes” and settle is taken by the parties at the personal level, on the emotional relationship plane. Working with parties at the very beginning of their conflict will require a far more nuanced approach and style from mediators particularly the ability to work with parties in the here and now of a joint session.It will also require the ability, especially for lawyer mediators, to become comfortable with the parties emotional state and their interpersonal relationship issues. It is therefore important that mediators connect with the parties at this level very early in the litigation cycle particularly through engaging with them and their attorneys in early pre-mediation meetings. This will require mediators to move beyond hard negotiating techniques to access soft skills. Soft skills include the ability to remain present in the moment, intuition, empathy, rapport, managing the challenge of being an irritant and the use of time and space (Temporality, ‘The Third’, ‘The Field’) and Meditation/Mindfulness (Rooney and Ross).