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Good fences make good revenue: An examination of revenue management practices at peer-to-peer accommodations

Author

Listed:
  • Yoon Koh

    (14743University of Houston, USA)

  • Amanda Belarmino

    (14722University of Nevada Las Vegas, USA)

  • Min Gyung Kim

    (65686Hongik University, Korea)

Abstract

While hotel revenue managers utilize tools such as pricing, market segmentation, rate fences, and forecasting to maximize revenue, hosts in peer-to-peer (P2P) accommodations often have limited knowledge and lack the sophisticated pricing tools. Despite online resources for revenue management available, there has yet to be an examination regarding how widely spread these practices are in the P2P accommodation segment. Based on daily best available rates and booking restrictions information for P2P accommodations listed on Airbnb from top 10 cities with highest room inventories in the United States, this study aims to shed light on the current state of revenue management adoption on Airbnb. Utilizing a total of 307,955 Airbnb property’s daily data for 32 months, this study found that there are significant differences in revenue management practices by host characteristics (multi-unit hosts vs. single-unit hosts: Superhosts vs. non-Superhosts) for three revenue management tactics: dynamic pricing, minimum night’s stay, and restricted cancellation, and the hosts practices changes as their experience accumulates.

Suggested Citation

  • Yoon Koh & Amanda Belarmino & Min Gyung Kim, 2020. "Good fences make good revenue: An examination of revenue management practices at peer-to-peer accommodations," Tourism Economics, , vol. 26(7), pages 1108-1128, November.
    • Handle: RePEc:sae:toueco:v:26:y:2020:i:7:p:1108-1128
    DOI: 10.1177/1354816619867579
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    References listed on IDEAS

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    2. Juliet B. Schor, 2017. "Does the sharing economy increase inequality within the eighty percent?: findings from a qualitative study of platform providers," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(2), pages 263-279.
    3. Sheryl E Kimes, 2016. "The evolution of hotel revenue management," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 15(3), pages 247-251, July.
    4. Alexandrea J. Ravenelle, 2017. "Sharing economy workers: selling, not sharing," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(2), pages 281-295.
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    Cited by:

    1. Kiczmachowska Ewa E., 2022. "Revenue Management Practices in Peer-to-Peer Accommodation: The Case of Airbnb," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 30(2), pages 135-152, June.
    2. Meijian Yang & Enjun Xia, 2021. "A Systematic Literature Review on Pricing Strategies in the Sharing Economy," Sustainability, MDPI, vol. 13(17), pages 1-28, August.
    3. Kiczmachowska Ewa E., 2022. "Revenue Management Practices in Peer-to-Peer Accommodation: The Case of Airbnb," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 30(1), pages 135-152, June.

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