Airbnb revenue generation in the urban context: An analysis of renting patterns and dynamics

Abstract

Cities are multifunctional entities that attract a large variety of differently motivated travelers, and new approaches allowing to evaluate the economic impacts generated by tourists in the age of ICT and sharing economy are now definitely needed. More particularly, the spread of a digitally-enabled peer-to-peer accommodation system such as Airbnb is transforming the hospitality domain: if its economic consequences may affect cities and territories at large, the first stakeholders involved in this new economic dynamic are hosts renting their under-used properties to guests. In this framework, this article aims at providing an overview on Airbnb revenue generation patterns, focusing on Turin (Italy) as a case study. Firstly, the article provides insights about the performance of different types of accommodations (i.e. entire homes/apartments and private rooms), suggesting that hosts may adopt different strategies not only to get the most from their properties and appeal different targets of potential guests, but also depending on the physical attributes of their properties. Then, the article advocates for the implementation of methodological approaches combining quantitative and qualitative perspectives, as to better contextualize data-analysis and deepen the interpretation of this innovative economic phenomenon.