Short-term Rentals Research Articles

Impact of COVID-19 on Airbnb occupancy rate in Bandung, Indonesia

The emergence of sharing economy, especially accommodation platform has enable people to rent and capitalize on their private properties by renting to others. However, with the covid-19 pandemic and proximity to first-tier city it is crucial to examine how these sharing accommodation properties survives.The paper investigates how urban neighbourhoods, Airbnb characteristics and urban mobility restrictions determine rental occupancy rates in Bandung, a second-tier city, during the COVID-19 pandemic. This paper examines; (i) the dynamics of determinant factors of occupancy rates before and after the pandemic and (ii) the impact of mobility and spatial proximity to first-tier city on sharing accommodations’ occupancy rates. This study uses econometric and spatial analysis with more than 2200 Airbnb property listings registered between 2016 and 2020 in Bandung city.Our study found a shift of preferences in a more urban direction and electronic word-of-mouth (eWOM) variables continuing with a slight decline in the pandemic. Comparison between before and during the pandemic suggests the persistent of high occupancy rate concentration only in in private listings, and located near to tourist attractions and a variety of amenities. Our finding calls for urban policies that limits the geographical distribution of short-term rental (STR) properties to avoid wider gentrification, safety risks, and pressure to the local housing supply.

Data-driven approach to optimizing property management strategies: spatial modeling analytics of short-term rentals

Purpose This study aims to explore the impact of locational and seasonal factors on the financial performance of short-term rental properties in Margaret River, Western Australia. It seeks to address the gap in understanding how these factors influence key financial metrics such as average daily rate (ADR) and occupancy rates, providing insights for property managers, investors and policymakers. Design/methodology/approach The research uses a mixed-method approach, integrating advanced predictive modeling techniques, such as Random Forests and Gradient Boosting, with spatial clustering algorithms like density-based spatial clustering of applications with noise (DBSCAN) and ordering points to identify the clustering structure (OPTICS). The study analyzes a comprehensive data set of short-term rental properties between 2012 and 2019. It focuses on locational attributes, seasonal variations and financial outcomes. Findings The findings reveal that properties located near tourist attractions and amenities consistently achieve higher ADRs and occupancy rates, confirming the critical role of location in driving rental demand. Seasonal analysis indicates significant fluctuations in both ADR and occupancy rates, with peaks during high tourist seasons and troughs in off-peak periods. The study underscores the importance of dynamic pricing strategies to optimize revenue and sustain occupancy across different seasons. In addition, it highlights the influence of property features, such as the number of bedrooms and bathrooms, on ADR, while noting that larger properties do not necessarily achieve higher occupancy rates. Research limitations/implications Future research could expand the scope to include different locations and explore the long-term impacts of locational and seasonal factors on property performance. Originality/value This research contributes to the literature by integrating spatial analysis with advanced predictive modeling techniques to provide a nuanced understanding of how locational and seasonal factors impact financial performance in the short-term rental market. It offers a novel application of data analytics within the context of tourism and hospitality management, bridging theoretical frameworks with practical insights.

Renting trouble? An analysis of crime and calls to police at addresses with different rental types

BackgroundThe number of studies about crime at short-term rentals (STRs), and about crime concentration has surged in recent years, but few have bridged these literatures. This study examines crime and calls for service at STRs in relation to other rentals, hotels, and all other addresses in a university city.MethodsPolice circumstances, rental properties, hotels and motels, liquor licenses, and all other addresses are assessed from January 2021 through June 2023 to understand public safety at STRs compared to other address-types.ResultsSTRs make up less than 10% of rental addresses. Police circumstances are significantly and negatively associated with both distance to campus and to liquor licenses. The maximum unrelated occupancy is positively and significantly associated with issues. STRs have greater issues for their lower maximum occupancy, but other rentals and hotels present substantially more problems on a per-address basis.ConclusionThese findings highlight the scope of STR circumstances, clarify potential differences in crime versus calls for service, and suggest that on a per-address basis, both are substantially worse at hotels and longer rentals than STRs.

Quantitative Analysis of the Future of the Sharing Economy, Housing, White-Collar Labor Markets, and Problems in Big Cities

This research project explores the future of the sharing economy and its profound effects on housing markets, white-collar labor dynamics, and socio-economic challenges in large metropolitan areas. Using quantitative economics and econometric techniques, the study evaluates how platforms such as Airbnb, Uber, and coworking spaces are reshaping urban life, exacerbating housing affordability issues, and altering labor market structures. By analyzing housing market data, labor statistics, and platform economy data from major cities like New York, London, and Istanbul, this research provides empirical insights into how the sharing economy influences urban economic landscapes. The study employs difference-in-differences (DiD) and multivariate regression models to assess causal relationships, particularly in terms of housing market disruptions caused by short-term rental platforms and labor market fragmentation driven by the rise of gig and remote work. Spatial econometric techniques are also used to explore geographic disparities in housing and employment impacts across urban districts. Preliminary findings indicate that the proliferation of sharing economy platforms has contributed to housing shortages and increased prices in central urban areas, while labor markets experience growing polarization, with high-skilled workers benefiting from remote work opportunities and low-skilled gig workers facing economic precarity. This research offers valuable policy insights into the regulation of short-term rentals and the protection of gig economy workers, highlighting the need for regulatory frameworks that address urban inequality and labor market shifts. By integrating data from multiple sources, this study contributes to the academic discourse on urban economics and provides a framework for understanding the long-term socio-economic implications of the sharing economy in big cities.

Impact of COVID-19 Pandemic on Airbnb Listings in New York City: Challenges and Opportunities for Urban Housing Sustainability

Short-term rental (STR) platforms like Airbnb have significantly impacted urban housing sustainability, particularly in cities like New York City. The COVID-19 pandemic disrupted the STR market, raising questions about its resilience and effects on sustainable urban housing. This study addresses the following research questions: (1) How did unit and neighborhood characteristics influence the survival of Airbnb listings during the pandemic? (2) What changes occurred in the factors determining the emergence of new listings during the pandemic? Using data from Inside Airbnb, we applied Cox proportional hazard models and negative binomial regression to analyze changes before and after the pandemic. We found that during the pandemic, price discounts became crucial for listing survival, while traditional quality indicators like superhost status and high ratings lost significance. The importance of subway accessibility decreased, reflecting shifts in traveler preferences. Additionally, new listings were less likely to emerge in high-density Airbnb areas and more likely in neighborhoods with higher crime rates. These findings highlight the need for sustainable regulatory approaches that balance the benefits of STR platforms with protecting housing affordability and community well-being. Our study provides insights for policymakers aiming to promote sustainable urban housing during global crises.

The Impact of Airbnb Expansion on Real Estate Speculation in Marseille’s Tourist Areas

This paper investigates the impact of Airbnb’s expansion on real estate speculation in Marseille’s tourist areas, particularly focusing on the Old Port and Le Panier districts. By analyzing the correlation between the growth of short-term rental platforms and the increase in property values, the study explores how Airbnb has transformed the housing market, contributing to speculative investment and gentrification. The research examines the reduction in long-term rental housing, the rising cost of property, and the displacement of local residents as key outcomes of Airbnb’s proliferation. Through comparisons with similar European cities such as Paris and Madrid, the paper highlights the socio-economic consequences of Airbnb-driven real estate speculation, including shifts in neighborhood demographics and the loss of affordable housing for low- and middle-income residents. The findings emphasize the need for policy interventions to mitigate the negative effects of short-term rentals on the local housing market, balancing tourism-driven economic growth with the preservation of community stability and housing accessibility.

Tourism-Led Housing Commodification: Transnational Real Estate Networks and State-Permeated Property Investment in Havana, Cuba

ABSTRACT In a context of ever-growing demand for tourism property, this paper scrutinizes emerging forms of tourism-led housing commodification in Havana, Cuba. In 2011, the Cuban property market reopened to investment when the socialist government allowed the sale of private property at prices set in a market environment. We pay attention to the critical role of Cuban migrants, remittance investors and lifestyle elites in commodifying Havana’s historic housing stock and transforming residential property into short-term rentals, hotels, private restaurants and tourist boutiques. We demonstrate how the Cuban government has become an active market facilitator, either by restraining private competition or by encapsulating tourism property investment within broader channels of the state. We conclude that the case of Havana is indicative of broader trends in tourism and hospitality, particularly in the Global South and East. We propose tourism-led housing commodification as a conceptual framework for understanding these broader commonalities.

Airbnb and Urban Housing Dynamics: Economic and Social Impacts in Greece

This study examines the interplay between Airbnb and gentrification in Thessaloniki and Greece, focusing on their economic and social impacts on urban neighborhoods. Utilizing data from 110 online publications and qualitative insights from ten semi-structured interviews with real estate agents, Airbnb stakeholders, residents, and experts, the research provides a nuanced view of these dynamics. The findings suggest that Airbnb influences housing markets by driving up rental and home prices, potentially exacerbating housing scarcity and displacing vulnerable populations in gentrifying areas. While this aligns with the existing literature, the results remain tentative due to the complexities involved. The trend toward corporate-hosted short-term rentals appears to shift Airbnb away from its original community-focused model, though this shift is still evolving. The COVID-19 pandemic introduced changes, such as a move from short-term to long-term rentals and the conversion of commercial spaces to residential use, impacting neighborhood dynamics. However, these effects may be temporary and do not fully address broader housing issues. While an oversupply of Airbnb accommodations might stabilize rental prices to some extent, its impact on the overall housing crisis remains uncertain. Future research should investigate the long-term effects on housing affordability and social equity, considering the limitations of current findings.

Local accommodation energy efficiency in Lisbon: a red flag for tourism, indoor thermal comfort, and energy renovation targets

Abstract Climate change affects all sectors of society, and tourism is no exception. Adaptation in this sector is challenging because of its vulnerability to rapid change and uncertainties of an environmental and political nature. Local accommodation (LA) (short-term rentals) plays a key role in the Portuguese economy and is, thus, potentially a key driver of increased energy efficiency and promoting buildings decarbonization, thereby contributing both to climate change adaptation and mitigation of this sector. However, there is limited research on energy efficiency and climate change resilience in the LA sector. To address this research gap, this study focuses on four civil parishes situated in the historic center of Lisbon, Portugal. Using a multidimensional approach and cross-sectoral datasets, we assessed the energy efficiency of LA in Lisbon and explored the cost of renovation measures. This analysis exposed poor energy performance in LA buildings and a low frequency of buildings with thermal insulation or double-glazed windows. Despite this, energy performance in the LA sector was comparatively better than in the residential sector. Additionally, LA s are equipped with more heating and cooling systems than the broader residential sector. This knowledge is relevant for researchers and policymakers, contributing to developing sustainable tourism approaches and reaching the objectives outlined in energy renovation policies.

Maximizing Profitability and Occupancy: An Optimal Pricing Strategy for Airbnb Hosts Using Regression Techniques and Natural Language Processing

In the competitive landscape of Airbnb hosting, optimizing pricing strategies for properties is a complex challenge that requires revenue maximization with high occupancy rates. This research aimed to introduce a solution that leverages big data and machine learning techniques to help hosts improve their property’s market performance. Our primary goal was to introduce a solution that can augment property owners’ understanding of their property’s market value within their urban context, thereby optimizing both the utilization and profitability of their listings. We employed a multi-faceted approach with diverse models, including support vector regression, XGBoost, and neural networks, to analyze the influence of factors such as location, host attributes, and guest reviews on a listing’s financial performance. To further refine our predictive models, we integrated natural language processing techniques for in-depth listing review analysis, focusing on term frequency-inverse document frequency (TF-IDF), bag-of-words, and aspect-based sentiment analysis. Integrating such techniques allowed for in-depth listing review analysis, providing nuanced insights into guest preferences and satisfaction. Our findings demonstrated that AirBnB hosts can effectively utilize both state-of-the-art and traditional machine learning algorithms to better understand customer needs and preferences, more accurately assess their listings’ market value, and focus on the importance of dynamic pricing strategies. By adopting this data-driven approach, hosts can achieve a balance between maintaining competitive pricing and ensuring high occupancy rates. This method not only enhances revenue potential but also contributes to improved guest satisfaction and the growing field of data-driven decisions in the sharing economy, specially tailored to the challenges of short-term rentals.

Complex tapestry of eBooking determinants: a moderation analysis of short-term rental

ABSTRACT The objective of this study is to investigate the multifaceted determinants influencing booking intentions in the dynamic landscape of short-term rentals. Drawing on established theories in consumer behaviour and hospitality management, the research aims to shed light on the interplay of factors such as price, occupancy rate, reviews, superhost status, instant book feature, listing type, and their potential moderation. By synthesising these insights, the study seeks to provide a deeper understanding of the complex decision-making processes of potential guests in the evolving context of modern hospitality and short-term accommodation platforms.

Fatal traffic accidents involving electric scooters in Poland in 2019–2023

With the introduction of mobile applications that allow short-term rentals, electric scooters (e-scooters) are gaining popularity as a means of micromobility in urban areas. The aim of the study was to assess the circumstances and causes of death in traffic accidents involving electric scooters in Poland. The inclusion criteria for the study were met by 9 cases (7 M,2F; mean age: 40.3 years). Accidents usually occur during working days during the warm months, especially during the morning traffic rush hour. Usually, these accidents involved another vehicle (4/9 cases). In addition, the victim was most often the driver (8/9 cases) and rarely uses a helmet (1/9 cases). In only two cases did the test reveal the presence of alcohol in the blood at the time of the accident. In studied cases, head injuries occurred in every case, and injuries to the limbs and chest occurred in more than half of the cases. Within the head, in addition to minor injuries like bruises and epidermal abrasions, skull fractures, and intracranial bleedings predominated. Similar minor injuries were also observed in the extremities, with significant fractures observed only in the lower extremities. Among chest injuries, lung contusions predominated. The most common cause of death was craniocerebral injury (6/9 cases), but there were two deaths each from chest injuries and polytrauma. To increase the safety of e-scooter users, it is recommended that measures be taken to educate users about the potential risks of using the vehicle and that measures be taken to increase the use of helmets, e.g. through legislative action. Further studies involving larger study groups are needed to assess the correlation between potential risk factors and the fatal outcome of the accident.

The motivations and practices of commercial short-term rental operators in the short-term/long-term “regulatory gap”

ABSTRACT Despite the rapid proliferation of short-term rentals (STRs) over the last decade, research contacting commercial operators to explore their business practices, motivations, and attitudes remains rare. Leveraging a comprehensive dataset of STR activity in Montreal alongside key-informant interviews, this study presents an in-depth portrait of commercial STR operators. We find that the experience of commercially operating STRs is marked by contradictions. While operating STRs can be time-consuming, the chief motivating factors are the potential for revenue maximization and the increased flexibility provided to property owners driven by a ‘regulatory gap’ between the long- and short-term rental markets.

Tourism and Urban Development: The case of a coastal village in a small island state

This paper discusses how Marsascala, a coastal town in Malta, has been urbanized over the years, with particular attention to the development of the tourist industry. Young’s (1983) “general model of the process of ‘touristization’ and landscape change” is engaged with to study the impact of tourism development on the locality and local community. Different research methods were used, including qualitative interviews via thematic analysis, fieldwork, orthophoto maps, and analysis of secondary data. Findings show that tourism plays a major role in the local economy. Overdevelopment and population increase (fuelled by tourism and influx of foreign workers) are major challenges in the locality. The former fishing village has as a result reached stage six (intensive tourism consolidation) of Young's model. While more services are available to locals and visitors, the quality of life in the locality is deteriorating. This has raised questions about the need to redevelop the Jerma Hotel which will partly be a real estate project. The authors propose a seventh stage to Young’s model - ‘real estatation’ whereby more areas are taken over by real estate projects including for short-term rentals. This paper is linked to the EU Cost Action CA221222 Rethinking the Blue Economy: Socio-Ecological Impacts and Opportunities (RethinkBlue), in particular in relation to the themes covered by Working Group 3 - Port cities & coastal communities.

A mixed approach to the heterogeneity of the short-term rentals’ regulation in Spain

A mixed approach to the heterogeneity of the short-term rentals’ regulation in Spain

Short-term rentals and residential rents: evidence from a regulation in Santa Monica

Purpose This study aims to investigate the relationship between Airbnb and long-term residential rents, using Santa Monica, California, as a case study. In 2015, Santa Monica adopted the home sharing ordinance (HSO), a stringent regulation aimed at restricting short-term rentals (STR). This research examines the implications of this ordinance on the local housing market. Design/methodology/approach The synthetic control method (SCM) is applied to a panel data set comprising Airbnb listings and residential rents from multiple cities in Los Angeles County. This approach is used to estimate the causal effects of Santa Monica’s HSO on two outcomes: Airbnb listings and residential rents. Findings The empirical results show a 60% reduction in Airbnb listings in Santa Monica within two years of implementing the ordinance. Despite this significant decrease, the effect of the regulation on rents was not significant. Suggestive evidence indicates that the ordinance’s ineffectiveness in increasing the number of houses allocated to long-term tenants may have contributed to its negligible impact on rental rates. Originality/value To the best of the author’s knowledge, this research is the first to use the SCM for evaluating the impact of STR regulations. It offers crucial insights to policymakers on regulating platforms like Airbnb. The study reveals a scenario where a marked decrease in Airbnb activity did not lower residential rents, highlighting the need for context-specific evaluations in understanding the housing market’s dynamics. Additionally, these findings are valuable for investors considering the implications of regulatory changes in the STR sector.

The effects of short-term rental regulation: Insights from Chicago

We provide an in-depth study of short-term rental (STR) regulation in Chicago. While many municipalities choose between outright bans or laissez-faire strategies concerning STR activities, Chicago pioneered a middle-ground ordinance, enabling the market to exist with limitations and registrations, and imposing a new tax. We show that compared to three control cities, the number of active Airbnb listings in Chicago declined 16.4% in the two years after the ordinance, but this effect is only significant after the city began receiving detailed data feeds from STR platforms. We further demonstrate (i) localized reductions in burglaries near buildings that prohibit STR listings as part of a new capability of the ordinance, (ii) Airbnb revenues declined more in zip codes with above-median hotel revenues, and (iii) Chicago's middle ground approach generated different and nuanced effects on different STR stakeholders, including the city itself in terms of its STR tax revenues.

How perceived justice leads to stickiness to short-term rental platforms: Unveiling the effect of relationship commitment and trust

The rise of the sharing economy has transformed traditional housing rental practices, with short-term rental (STR) emerging as a successful model in the accommodation sector. However, information asymmetry and trust issues pose significant challenges within STR platforms, emphasizing the importance of improving user stickiness. This study utilizes a two-stage, multi-method approach to validate the dimensions of perceived justice among guests in STR settings and their impact on user stickiness. The results demonstrate that guests’ perceptions of justice are primarily influenced by dimensions such as distributive, interpersonal, informational, and procedural justice, which in turn positively affect platform stickiness through the mediation of trust and relationship commitment. These findings offer valuable insights for addressing justice concerns and enhancing user stickiness in the STR landscape.

The effects of the professionalization of hosting on service quality: Towards quality standards and certifications within the short-term rental market

This paper explores how the increasing professionalization of the short-term rental market (previously dominated by individual hosts) fosters the implementation of formal quality standards in the sector. It is based on 36 in-depth interviews conducted with different stakeholders of the short-term rental industry in six European countries, namely, Croatia, Cyprus, Italy, Spain, Turkey, and the UK, and at EU level. The article maps different initiatives that outline some quality standards for short-term rentals. We found first, that to implement quality standardisation, it is important to distinguish between private and professional hosts; and, second, that consensus must be reached on: (1) whether quality would be standardised at national or EU level; (2) which governing body should be responsible for quality certifications (e.g., governments or private institutions as in the case of ISO standards); and (3) identification of practices that should be certified (e.g., property facilities/amenities, size, health & safety protection, etc.).

Short-Term Rental in the Socioeconomic Aspect in Kuala Lumpur

Short-Term Rental in the Socioeconomic Aspect in Kuala Lumpur