IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i2p1703-d1037449.html
   My bibliography  Save this article

Multiscale Effects of Hedonic Attributes on Airbnb Listing Prices Based on MGWR: A Case Study of Beijing, China

Author

Listed:
  • Chunfang Zhao

    (Department of Electronic Business, South China University of Technology, Guangzhou 510006, China
    International Business College, Guangzhou City Polytechnic, Guangzhou 510405, China)

  • Yingliang Wu

    (Department of Electronic Business, South China University of Technology, Guangzhou 510006, China)

  • Yunfeng Chen

    (General Education College, Jinan Engineering Polytechnic, Jinan 250200, China)

  • Guohua Chen

    (Network Center, South China Normal University, Guangzhou 510006, China
    Guangdong Artificial Intelligence and Digital Economy Laboratory (Pazhou Lab), Guangzhou 510335, China)

Abstract

An investigation into the pricing mechanism of Airbnb is crucial for achieving the sustainable development of sharing economy accommodations and has great academic and practical significance. The existing pricing studies on sharing economy accommodation have identified a set of important factors impacting prices based on the hedonic price model. However, the spatial scale of the impact of various hedonic attributes on Airbnb listing prices is not yet clear. This study takes Beijing, China, as a case study; develops a conceptual framework that incorporates four categories of hedonic attributes; and uses a spatial heterogeneity perspective to investigate the multiscale spatial effects of various attributes on the prices of Airbnb listings. Our findings revealed the following: (1) The explanatory power of different categories of attributes towards listing prices varies from high to low, as follows: functional attributes, locational attributes, reputational attributes, and host status attributes, among which the functional attributes are the most important determinants of Airbnb listing prices. (2) There are multiscale, spatially heterogeneous relationships between Airbnb listing attributes and prices. Specifically, the functional attribute variables have local influencing scales, the reputation attribute variables have regional scales, and the variables of host status and locational attributes have global scales. (3) Compared with ordinary least squares (OLS) regression and geographically weighted regression (GWR), multiscale geographic weighted regression (MGWR) improves overall modelling ability by introducing multiple scales and is better suited to illuminating the hedonic pricing of sharing economy accommodations. This study provides new insights into the spatially varied relationships between listing attributes and Airbnb listing prices, which can deepen our understanding of sharing economy accommodation and help hosts formulate location-based pricing strategies.

Suggested Citation

  • Chunfang Zhao & Yingliang Wu & Yunfeng Chen & Guohua Chen, 2023. "Multiscale Effects of Hedonic Attributes on Airbnb Listing Prices Based on MGWR: A Case Study of Beijing, China," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1703-:d:1037449
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/2/1703/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/2/1703/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Martin, Chris J., 2016. "The sharing economy: A pathway to sustainability or a nightmarish form of neoliberal capitalism?," Ecological Economics, Elsevier, vol. 121(C), pages 149-159.
    2. Harrison, David Jr. & Rubinfeld, Daniel L., 1978. "Hedonic housing prices and the demand for clean air," Journal of Environmental Economics and Management, Elsevier, vol. 5(1), pages 81-102, March.
    3. V. Raul Perez-Sanchez & Leticia Serrano-Estrada & Pablo Marti & Raul-Tomas Mora-Garcia, 2018. "The What, Where, and Why of Airbnb Price Determinants," Sustainability, MDPI, vol. 10(12), pages 1-31, December.
    4. Fang, Bin & Ye, Qiang & Law, Rob, 2016. "Effect of sharing economy on tourism industry employment," Annals of Tourism Research, Elsevier, vol. 57(C), pages 264-267.
    5. Lutz, Christoph & Newlands, Gemma, 2018. "Consumer segmentation within the sharing economy: The case of Airbnb," Journal of Business Research, Elsevier, vol. 88(C), pages 187-196.
    6. Insu Hong & Changsok Yoo, 2020. "Analyzing Spatial Variance of Airbnb Pricing Determinants Using Multiscale GWR Approach," Sustainability, MDPI, vol. 12(11), pages 1-18, June.
    7. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    8. Goodman, Allen C., 1978. "Hedonic prices, price indices and housing markets," Journal of Urban Economics, Elsevier, vol. 5(4), pages 471-484, October.
    9. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    10. J.M. Espinet & M. Saez & G. Coenders & M. FluviÃ, 2003. "Effect on Prices of the Attributes of Holiday Hotels: A Hedonic Prices Approach," Tourism Economics, , vol. 9(2), pages 165-177, June.
    11. Lawani, Abdelaziz & Reed, Michael R. & Mark, Tyler & Zheng, Yuqing, 2019. "Reviews and price on online platforms: Evidence from sentiment analysis of Airbnb reviews in Boston," Regional Science and Urban Economics, Elsevier, vol. 75(C), pages 22-34.
    12. Mok, Henry M K & Chan, Patrick P K & Cho, Yiu-sun, 1995. "A Hedonic Price Model for Private Properties in Hong Kong," The Journal of Real Estate Finance and Economics, Springer, vol. 10(1), pages 37-48, January.
    13. Juying Wang & Xiaoqing Yu, 2021. "The Driving Path of Customer Sustainable Consumption Behaviors in the Context of the Sharing Economy—Based on the Interaction Effect of Customer Signal, Service Provider Signal, and Platform Signal," Sustainability, MDPI, vol. 13(7), pages 1-16, March.
    14. A. Stewart Fotheringham & Wenbai Yang & Wei Kang, 2017. "Multiscale Geographically Weighted Regression (MGWR)," Annals of the American Association of Geographers, Taylor & Francis Journals, vol. 107(6), pages 1247-1265, November.
    15. Irem Önder & Christian Weismayer & Ulrich Gunter, 2019. "Spatial price dependencies between the traditional accommodation sector and the sharing economy," Tourism Economics, , vol. 25(8), pages 1150-1166, December.
    16. Gelfand A.E. & Kim H-J. & Sirmans C.F. & Banerjee S., 2003. "Spatial Modeling With Spatially Varying Coefficient Processes," Journal of the American Statistical Association, American Statistical Association, vol. 98, pages 387-396, January.
    17. Robbin Deboosere & Danielle Jane Kerrigan & David Wachsmuth & Ahmed El-Geneidy, 2019. "Location, location and professionalization: a multilevel hedonic analysis of Airbnb listing prices and revenue," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 6(1), pages 143-156, January.
    18. Augusto Voltes-Dorta & Federico Inchausti-Sintes, 2021. "The spatial and quality dimensions of Airbnb markets," Tourism Economics, , vol. 27(4), pages 688-702, June.
    19. McMillen, Daniel P., 1996. "One Hundred Fifty Years of Land Values in Chicago: A Nonparametric Approach," Journal of Urban Economics, Elsevier, vol. 40(1), pages 100-124, July.
    20. Ching-Fu Chen & R. Rothschild, 2010. "An Application of Hedonic Pricing Analysis to the Case of Hotel Rooms in Taipei," Tourism Economics, , vol. 16(3), pages 685-694, September.
    21. Zhihua Zhang & Rachel J. C. Chen & Lee D. Han & Lu Yang, 2017. "Key Factors Affecting the Price of Airbnb Listings: A Geographically Weighted Approach," Sustainability, MDPI, vol. 9(9), pages 1-13, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yongxin Liu & Yiting Wang & Yiwen Lin & Xiaoqing Ma & Shifa Guo & Qianru Ouyang & Caige Sun, 2023. "Habitat Quality Assessment and Driving Factors Analysis of Guangdong Province, China," Sustainability, MDPI, vol. 15(15), pages 1-23, July.
    2. Zahyah H. Alharbi, 2023. "A Sustainable Price Prediction Model for Airbnb Listings Using Machine Learning and Sentiment Analysis," Sustainability, MDPI, vol. 15(17), pages 1-19, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Insu Hong & Changsok Yoo, 2020. "Analyzing Spatial Variance of Airbnb Pricing Determinants Using Multiscale GWR Approach," Sustainability, MDPI, vol. 12(11), pages 1-18, June.
    2. Yifei Jiang & Honglei Zhang & Xianting Cao & Ge Wei & Yang Yang, 2023. "How to better incorporate geographic variation in Airbnb price modeling?," Tourism Economics, , vol. 29(5), pages 1181-1203, August.
    3. Bobrovskaya, Ekaterina & Polbin, Andrey, 2022. "Determinants of short-term rental prices in the sharing economy: The case of Airbnb in Moscow," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 65, pages 5-28.
    4. Xiandeng Jiang & Zheng Pan & Ningru Zhao, 2023. "Relative Value vs Absolute Value: Housing Wealth and Labor Supply," The Journal of Real Estate Finance and Economics, Springer, vol. 66(1), pages 41-76, January.
    5. de la Peña, Mario Raúl & Núñez-Serrano, Juan A. & Turrión, Jaime & Velázquez, Francisco J., 2016. "Are innovations relevant for consumers in the hospitality industry? A hedonic approach for Cuban hotels," Tourism Management, Elsevier, vol. 55(C), pages 184-196.
    6. Josep Lladós-Masllorens & Antoni Meseguer-Artola & Inma Rodríguez-Ardura, 2020. "Understanding Peer-to-Peer, Two-Sided Digital Marketplaces: Pricing Lessons from Airbnb in Barcelona," Sustainability, MDPI, vol. 12(13), pages 1-19, June.
    7. Ante Mandić & Elza Jurun, 2018. "The Determinants of Small and Family Owned Hotel Room Rates," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 11(2), pages 17-22, September.
    8. Loïc Lévi & Jean Jacques Nowak & Sylvain Petit & Hakim Hammadou, 2022. "Industrial legacy and hotel pricing: An application of spatial hedonic pricing analysis in Nord-Pas-de-Calais, France," Tourism Economics, , vol. 28(4), pages 870-898, June.
    9. David Boto-García & Veronica Leoni, 2023. "The Economic Value of Coastal Amenities: Evidence from Beach Capitalization Effects in Peer-to-Peer Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 529-557, February.
    10. Natalia Porto & Manuela Cerimelo & Iván Albina & Juan Luis Schiavonni & Francisco Pizzi, 2020. "Atributos, puntuacion y precios hedonicos en la Provincia de Buenos Aires y CABA: un analisis basado en Booking y Airbnb," Asociación Argentina de Economía Política: Working Papers 4392, Asociación Argentina de Economía Política.
    11. Radmila Datsenko, 2013. "House Price Dynamics : The French Case," Post-Print halshs-03373717, HAL.
    12. Latinopoulos, Dionysis, 2018. "Using a spatial hedonic analysis to evaluate the effect of sea view on hotel prices," Tourism Management, Elsevier, vol. 65(C), pages 87-99.
    13. V. Raul Perez-Sanchez & Leticia Serrano-Estrada & Pablo Marti & Raul-Tomas Mora-Garcia, 2018. "The What, Where, and Why of Airbnb Price Determinants," Sustainability, MDPI, vol. 10(12), pages 1-31, December.
    14. Yujiao Chen & Zhengbo Luo, 2022. "Hedonic Pricing of Houses in Megacities Pre- and Post-COVID-19: A Case Study of Shanghai, China," Sustainability, MDPI, vol. 14(17), pages 1-21, September.
    15. Augusto Voltes-Dorta & Federico Inchausti-Sintes, 2021. "The spatial and quality dimensions of Airbnb markets," Tourism Economics, , vol. 27(4), pages 688-702, June.
    16. Cirer-Costa, Joan Carles, 2017. "Estrategias de fijación y ofuscación de precios en los hoteles de sol y playa [Pricing and obfuscation strategies for sun and beach hotels]," MPRA Paper 81823, University Library of Munich, Germany.
    17. de Oliveira Santos, Glauber Eduardo, 2016. "Worldwide hedonic prices of subjective characteristics of hostels," Tourism Management, Elsevier, vol. 52(C), pages 451-454.
    18. Trinath Sai Subhash Reddy Pittala & Uma Maheswara R Meleti & Hemanth Vasireddy, 2024. "Unveiling Patterns in European Airbnb Prices: A Comprehensive Analytical Study Using Machine Learning Techniques," Papers 2407.01555, arXiv.org.
    19. Yang, Yang & Mueller, Noah J. & Croes, Robertico R., 2016. "Market accessibility and hotel prices in the Caribbean: The moderating effect of quality-signaling factors," Tourism Management, Elsevier, vol. 56(C), pages 40-51.
    20. Abrate, Graziano & Viglia, Giampaolo, 2016. "Strategic and tactical price decisions in hotel revenue management," Tourism Management, Elsevier, vol. 55(C), pages 123-132.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1703-:d:1037449. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.