What Factors drives the Airbnb Listing’s Prices?

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.