IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v24y2018i3p270-293.html
   My bibliography  Save this article

Determinants of Airbnb demand in Vienna and their implications for the traditional accommodation industry

Author

Listed:
  • Ulrich Gunter

    (MODUL University Vienna, Austria)

  • Irem Önder

    (MODUL University Vienna, Austria)

Abstract

This study identifies key determinants of Airbnb demand and quantifies their marginal contributions in terms of demand elasticities. A comprehensive cross-sectional data set of all Viennese Airbnb listings that were active between July 2015 and June 2016 is examined. Estimation results, which are obtained by cluster-robust ordinary least squares, show that Airbnb demand in Vienna is price-inelastic. Significant positive drivers include listing size, number of photos, and responsiveness of the host. Significant negative drivers include listing price, distance from the city center, and response time of the host. Implications for the traditional accommodation industry are that, on the one hand, it should better communicate its sought-after advantages (e.g. lower average minimum duration of stay). On the other hand, it should increase its offer of bigger and better equipped hotel rooms since hosting more than two guests at a time is one of the major benefits of Airbnb.

Suggested Citation

  • Ulrich Gunter & Irem Önder, 2018. "Determinants of Airbnb demand in Vienna and their implications for the traditional accommodation industry," Tourism Economics, , vol. 24(3), pages 270-293, May.
    • Handle: RePEc:sae:toueco:v:24:y:2018:i:3:p:270-293
    DOI: 10.1177/1354816617731196
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1354816617731196
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1354816617731196?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ert, Eyal & Fleischer, Aliza & Magen, Nathan, 2016. "Trust and reputation in the sharing economy: The role of personal photos in Airbnb," Tourism Management, Elsevier, vol. 55(C), pages 62-73.
    2. Fleura Bardhi & Giana M. Eckhardt, 2012. "Access-Based Consumption: The Case of Car Sharing," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(4), pages 881-898.
    3. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    4. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    5. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    6. Iis P. Tussyadiah, 2015. "An Exploratory Study on Drivers and Deterrents of Collaborative Consumption in Travel," Springer Books, in: Iis Tussyadiah & Alessandro Inversini (ed.), Information and Communication Technologies in Tourism 2015, edition 127, pages 817-830, Springer.
    7. White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, vol. 50(1), pages 1-25, January.
    8. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    9. Belk, Russell, 2014. "You are what you can access: Sharing and collaborative consumption online," Journal of Business Research, Elsevier, vol. 67(8), pages 1595-1600.
    10. 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.
    11. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    12. Breusch, T S & Pagan, A R, 1979. "A Simple Test for Heteroscedasticity and Random Coefficient Variation," Econometrica, Econometric Society, vol. 47(5), pages 1287-1294, 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. Giulia Contu & Luca Frigau & Marco Ortu, 2023. "VGLM proportional odds model to infer hosts’ Airbnb performance," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(5), pages 4069-4094, October.
    2. Juan Luis Jiménez & Armando Ortuño & Jorge V. Pérez-Rodríguez, 2022. "How does AirBnb affect local Spanish tourism markets?," Empirical Economics, Springer, vol. 62(5), pages 2515-2545, May.
    3. Matthias Wrede, 2022. "How Short-Term Rentals are Changing the Neighborhood," International Regional Science Review, , vol. 45(4), pages 417-443, July.
    4. He, Jiaxiu & Li, Bingqing & Wang, Xin (Shane), 2023. "Image features and demand in the sharing economy: A study of Airbnb," International Journal of Research in Marketing, Elsevier, vol. 40(4), pages 760-780.
    5. Juan L Eugenio-Martin & José M Cazorla-Artiles & Christian González-Martel, 2019. "On the determinants of Airbnb location and its spatial distribution," Tourism Economics, , vol. 25(8), pages 1224-1244, December.
    6. Bozana Zekan & Ulrich Gunter, 2022. "Zooming into Airbnb listings of European cities: Further investigation of the sector’s competitiveness," Tourism Economics, , vol. 28(3), pages 772-794, May.
    7. Patricia Valenzuela & Armando Ortuño & María Flor & Begoña Guirao, 2024. "Analysis of the Location Factors Affecting the Price of Tourist Houses: The Role of Accessibility to Public Transport Stations in Madrid," Sustainability, MDPI, vol. 16(11), pages 1-15, June.
    8. Ti-An Chen, 2022. "Business Performance Evaluation for Tourism Factory: Using DEA Approach and Delphi Method," Sustainability, MDPI, vol. 14(15), pages 1-19, July.
    9. Sainaghi, Ruggero & Chica-Olmo, Jorge, 2022. "The effects of location before and during COVID-19," Annals of Tourism Research, Elsevier, vol. 96(C).
    10. 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.
    11. Miguel Ángel Solano-Sánchez & José António C. Santos & Margarida Custódio Santos & Manuel Ángel Fernández-Gámez, 2021. "Holiday Rentals in Cultural Tourism Destinations: A Comparison of Booking.com-Based Daily Rate Estimation for Seville and Porto," Economies, MDPI, vol. 9(4), pages 1-16, October.
    12. Birgit Leick & Bjørnar Karlsen Kivedal & Mehtap Aldogan Eklund & Evgueni Vinogradov, 2022. "Exploring the relationship between Airbnb and traditional accommodation for regional variations of tourism markets," Tourism Economics, , vol. 28(5), pages 1258-1279, August.
    13. Nicola Camatti & Giacomo Tollo & Gianni Filograsso & Sara Ghilardi, 2024. "Predicting Airbnb pricing: a comparative analysis of artificial intelligence and traditional approaches," Computational Management Science, Springer, vol. 21(1), pages 1-25, June.
    14. Dolnicar, Sara, 2019. "A review of research into paid online peer-to-peer accommodation," Annals of Tourism Research, Elsevier, vol. 75(C), pages 248-264.
    15. Hongbo Tan & Tian Su & Xusheng Wu & Pengzhan Cheng & Tianxiang Zheng, 2024. "A Sustainable Rental Price Prediction Model Based on Multimodal Input and Deep Learning—Evidence from Airbnb," Sustainability, MDPI, vol. 16(15), pages 1-22, July.
    16. Ulrich Gunter, 2021. "Improving Hotel Room Demand Forecasts for Vienna across Hotel Classes and Forecast Horizons: Single Models and Combination Techniques Based on Encompassing Tests," Forecasting, MDPI, vol. 3(4), pages 1-36, November.
    17. Bozana Zekan & Irem Önder & Ulrich Gunter, 2019. "Benchmarking of Airbnb listings: How competitive is the sharing economy sector of European cities?," Tourism Economics, , vol. 25(7), pages 1029-1046, November.
    18. Yuting Chen & Rong Zhang & Bin Liu, 2021. "Fixed, flexible, and dynamics pricing decisions of Airbnb mode with social learning," Tourism Economics, , vol. 27(5), pages 893-914, August.
    19. Beatriz Benítez-Aurioles, 2022. "The exhaustion of the herding effect in peer-to-peer accommodation," Tourism Economics, , vol. 28(1), pages 27-43, February.
    20. Martin Thomas Falk & Yang Yang, 2021. "Hotels benefit from stricter regulations on short-term rentals in European cities," Tourism Economics, , vol. 27(7), pages 1526-1539, November.
    21. Bobrovskaya, EV. & Polbin, A., 2023. "Econometric modeling of the demand for short-term rental housing: The case of Airbnb in Moscow," Journal of the New Economic Association, New Economic Association, vol. 59(2), pages 64-84.
    22. Augusto Voltes-Dorta & Federico Inchausti-Sintes, 2021. "The spatial and quality dimensions of Airbnb markets," Tourism Economics, , vol. 27(4), pages 688-702, June.
    23. Türk, Umut & Östh, John & Kourtit, Karima & Nijkamp, Peter, 2021. "The path of least resistance explaining tourist mobility patterns in destination areas using Airbnb data," Journal of Transport Geography, Elsevier, vol. 94(C).
    24. Lee, Yong-Jin Alex & Jang, Seongsoo & Kim, Jinwon, 2020. "Tourism clusters and peer-to-peer accommodation," Annals of Tourism Research, Elsevier, vol. 83(C).
    25. repec:hal:journl:hal-04779130 is not listed on IDEAS

    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. Bozana Zekan & Irem Önder & Ulrich Gunter, 2019. "Benchmarking of Airbnb listings: How competitive is the sharing economy sector of European cities?," Tourism Economics, , vol. 25(7), pages 1029-1046, November.
    2. Asad Mohsin & Jorge Lengler, 2021. "Airbnb Hospitality: Exploring Users and Non-Users’ Perceptions and Intentions," Sustainability, MDPI, vol. 13(19), pages 1-20, September.
    3. Naoto Jinji & Xingyuan Zhang & Shoji Haruna, 2022. "Deep Integration, Global Firms, and Technology Spillovers," Advances in Japanese Business and Economics, Springer, number 978-981-16-5210-3, June.
    4. Michael Thorpe & Zhaoyang Zhang, 2005. "Study of the Measurement and Determinants of Intra‐industry Trade in East Asia," Asian Economic Journal, East Asian Economic Association, vol. 19(2), pages 231-247, June.
    5. Richard H. Spady & Sami Stouli, 2018. "Simultaneous Mean-Variance Regression," Bristol Economics Discussion Papers 18/697, School of Economics, University of Bristol, UK.
    6. Magdalena Olczyk, 2016. "International Competitiveness in the Economics Literature: A Bibliometric Study," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 2(4), pages 375-388, October.
    7. Akbari, Morteza & Foroudi, Pantea & Khodayari, Maryam & Zaman Fashami, Rahime & Shahabaldini parizi, Zahra & Shahriari, Elmira, 2022. "Sharing Your Assets: A Holistic Review of Sharing Economy," Journal of Business Research, Elsevier, vol. 140(C), pages 604-625.
    8. Steven Kane Curtis & Matthias Lehner, 2019. "Defining the Sharing Economy for Sustainability," Sustainability, MDPI, vol. 11(3), pages 1-25, January.
    9. Daniel Schlagwein & Detlef Schoder & Kai Spindeldreher, 2020. "Consolidated, systemic conceptualization, and definition of the “sharing economy”," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 71(7), pages 817-838, July.
    10. Haenssgen, Marco J. & Savage, Jessica & Yeboah, Godwin & Charoenboon, Nutcha & Srenh, Sorn, 2021. "In a network of lines that intersect: The socio-economic development impact of marine resource management and conservation in Southeast Asia," World Development, Elsevier, vol. 146(C).
    11. Shon M. Ferguson, 2015. "Endogenous Product Differentiation, Market Size and Prices," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 45-61, February.
    12. J. Hanna & L. L鶩 & S. Petit, 2015. "Intra-tourism trade, income distribution and tourism endowment: an econometric investigation," Applied Economics, Taylor & Francis Journals, vol. 47(21), pages 2184-2200, May.
    13. Valeria Andreoni, 2020. "The Trap of Success: A Paradox of Scale for Sharing Economy and Degrowth," Sustainability, MDPI, vol. 12(8), pages 1-17, April.
    14. Daisy Bertrand & Pierre-Yves Léo & Jean Philippe, 2019. "The New Go-Between Services: Peer-To-Peer Sharing Platforms In Hospitality Services," Post-Print hal-02299130, HAL.
    15. Ardelean, Adina & Lugovskyy, Volodymyr, 2010. "Domestic productivity and variety gains from trade," Journal of International Economics, Elsevier, vol. 80(2), pages 280-291, March.
    16. Fujita, Masahisa & Thisse, Jacques-François, 2009. "New Economic Geography: An appraisal on the occasion of Paul Krugman's 2008 Nobel Prize in Economic Sciences," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 109-119, March.
    17. J.Peter Neary, 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
    18. Martin Andersson & Sara Johansson & Hans Lööf, 2012. "Firm Performance and International Trade – Evidence from a Small Open Economy," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), The Regional Economics of Knowledge and Talent, chapter 13, Edward Elgar Publishing.
    19. Joachim Zietz, 2006. "Detecting neglected parameter heterogeneity with Chow tests," Applied Economics Letters, Taylor & Francis Journals, vol. 13(6), pages 369-374.
    20. Etro, Federico, 2017. "The Heckscher–Ohlin model with monopolistic competition and general preferences," Economics Letters, Elsevier, vol. 158(C), pages 26-29.

    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:sae:toueco:v:24:y:2018:i:3:p:270-293. 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: SAGE Publications (email available below). General contact details of provider: .

    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.