Exploring the effect of Airbnb hosts' attachment and psychological ownership in the sharing economy

Previous research on the sharing economy has not typically focused on organizational structure and its management in spite of the fact that the essence of recent peer-to-peer business practices is the collaboration of online platforms and sharable assets owned by market peers. This paper critically examines a theoretical model to explore how these market partners engage in this platform organization and how their perceptions of attachment and ownership are established within the new organizational structure. The results of structural equation modeling applied to 224 Airbnb hosts indicate that attachment to a platform firm plays a vital role in achieving a sense of psychological ownership that ultimately influences citizenship behaviors toward the organization as well as toward peer hosts. The results suggest that the newly formed structure should acknowledge an establishing mechanism of attachment and psychological ownership in partnering with individual service providers in its operational management.     

Price determinants of sharing economy based accommodation rental: A study of listings from 33 cities on Airbnb.com

The advent of the “sharing economy” challenges not only the business of hotel industry but also the theories and models based on the conventional hotel industry. A key dimension of the hospitality industry is pricing. The aim of this study is to identify the price determinants of sharing economy based accommodation offers in the digital marketplace. Specifically, a sample of 180,533 accommodation rental offers in 33 cities listed on Airbnb.com is investigated using ordinary least squares and quantile regression analysis. Twenty-five explanatory variables in five categories (host attributes, site and property attributes, amenities and services, rental rules, and online review ratings) are explored for the intricacies of the relationships between pricing and its determinants.     

Trust and reputation in the sharing economy: The role of personal photos in Airbnb

‘Sharing economy’ platforms such as Airbnb have recently flourished in the tourism industry. The prominent appearance of sellers' photos on these platforms motivated our study. We suggest that the presence of these photos can have a significant impact on guests' decision making. Specifically, we contend that guests infer the host's trustworthiness from these photos, and that their choice is affected by this inference. In an empirical analysis of Airbnb's data and a controlled experiment, we found that the more trustworthy the host is perceived to be from her photo, the higher the price of the listing and the probability of its being chosen. We also find that a host's reputation, communicated by her online review scores, has no effect on listing price or likelihood of consumer booking. We further demonstrate that if review scores are varied experimentally, they affect guests' decisions, but the role of the host's photo remains significant.     

The construction of home feeling by Airbnb guests in the sharing economy: A semantics perspective

Although the literature of peer-to-peer accommodation is increasingly recognizing the importance of home feeling, little has been done to theorize the construction of home feeling and its impacts on Airbnb guests’ future intention. To fill in this gap, this study systematically unpacked how Airbnb guests construct the feeling of home. A total of 42,085 review comments containing the feeling of home from three major cities in the USA were analyzed from a semantics perspective. Based on our findings we conceptualize home feeling as a PASS_h process, which contains multiple dimensions: physical and spatial, social, and affective, coupled with hospitality. Essentially, the home feeling with the interaction of these dimensions fulfills the daily hybrid needs of the guests.This article also launches the Annals of Tourism Research Curated Collection on Peer-to-peer accommodation networks, a special selection of research in this field.     

Core and supplemental elements of hospitality in the sharing economy: Insights from semantic and tonal cues in Airbnb property listings

Advances in peer-to-peer sharing, made popular by platforms like Airbnb, have altered previous conceptualizations of the lodging hospitality product. This study performs semantic and tonal analyses on a large-scale dataset collected from Airbnb. Our results support a concept of lodging hospitality that comprises core products and services, supplemental customer care, and a third factor we term ‘host sharing.’ Furthermore, the study offers insight into the topics and rhetorical tactics currently defining lodging hospitality marketing on the Airbnb platform. These findings can be used to provide guidance for Airbnb hosts to provide suitable information in their listings.     

Pricing in the sharing economy: a hedonic pricing model applied to Airbnb listings

ABSTRACT

This paper examines the impact of a variety of variables on the rates published for Airbnb listings in five large metropolitan areas in Canada. The researchers applied a hedonic pricing model to 15,716 Airbnb listings. As expected, the results show that physical characteristics, location, and host characteristics significantly impact price. Interestingly, more reviews are associated with a drop in price. This information is useful to hosts who are forming a pricing strategy for their listings as well as for Airbnb, who needs to support them. The paper raises important questions about pricing in the sharing economy and suggests avenues for future research in this area.     

Using segmentation to compete in the age of the sharing economy: Testing a core-periphery framework

Airbnb has emerged as a credible competitive threat to the hotel industry. Consequently, hotel brands are having to rethink the experiences they provide to customer in an increasingly competitive environment. Despite these trends in the industry, experience-related research that examines and informs these developments remains under-represented in the hospitality and tourism literature. The present study offers a systematic approach to examine the potential differences in experiential consumption in the accommodations industry. Using a multiple-group analysis approach, it examines the moderating effects of individual characteristics and situational factors on the nature and dynamics of experiential consumption in the accommodations industry. The findings of the study culminate in the core-periphery framework of the hospitality consumption experience that can provide a relevant theoretical lens for future research into the different sectors and types of experiences within the hospitality and tourism industry. The study also outlines important implications for the hotel industry’s strategic experience design initiatives, from the standpoint of product development, the segmentation, targeting and positioning (STP) process, and marketing communications.     

The Airbnb paradox: Positive employment effects in the hospitality industry

The purpose of this study is to examine the extent to which Airbnb supply affects employment in the hospitality, tourism, and leisure industries. Accordingly, we analyzed the effects of Airbnb supply on various sectors in the hospitality, tourism, and leisure industries in 12 major metropolitan statistical areas in the United States for the period between July-2008 and February-2018. The results showed that Airbnb supply positively affects employment in all sectors of the hospitality, tourism, and leisure industries. The magnitudes of these effects are not only statistically but also economically significant. Although prior studies have showed that Airbnb has an adverse impact on hotels' financial performance measures, our results show that employment in the hotel sector increases with increased Airbnb listings. While this outcome might be contradictory to the general conjecture, such evidence calls for a comprehensive investigation of Airbnb's overall economic impact. Research and practical implications are further discussed.     

The effects of Airbnb on hotel performance: Evidence from cities beyond the United States

Although Airbnb's impact on hotels has been quantified for major hotel markets in the United States, these effects have not been quantified in international hotel markets. Accordingly, the purpose of this study is to examine the effects of Airbnb listings on key hotel performance metrics in an international context. In particular, we examine the effects of Airbnb listings on hotel revenue per available room (RevPAR), average daily rate (ADR), and occupancy rate (OCC) in major international hotel markets, namely London, Paris, Sydney and Tokyo. The results show that Airbnb listings in these major cities have been increasing more than 100% year over year and that the effect of Airbnb on hotel RevPAR and OCC is negative and statistically significant. In particular, a 1% increase in Airbnb listings decreases hotel RevPAR by between 0.016% and 0.031% in these hotel markets. The implications of these findings for destinations and hoteliers are discussed.     

Investigating the whole picture: Comparing the effects of Airbnb supply and hotel supply on hotel performance across the United States

This study examines and compares the extent to which Airbnb and hotel supply affect key hotel performance measures in the United States. The results show that although both Airbnb and hotel supply adversely affect hotel revenues (i.e., RevPAR), the magnitude of the impact of hotel supply on RevPAR is much larger than that of Airbnb. Airbnb adversely affects hotel room prices (i.e., ADR), however; it does not affect occupancy rates (i.e., OCC). Yet, increasing hotel supply negatively affects OCC but not ADR. The results from the state-level analyses further showed that the negative effects of Airbnb and hotel supply on RevPAR, ADR and OCC persist only in states with high hotel supply. Analyzing the joint effects of Airbnb and hotel supply on hotel performance in a manner that is both geographically-comprehensive and spatially-meaningful, this study provides a more complete and nuanced understanding on the economic dynamics of the accommodation industry.     

40 years of sharing economy research: An intellectual and cognitive structures analysis

This study aims to analyze the intellectual and cognitive structures of the sharing economy as a field of research. Adopting an integrated bibliometric approach of citation, co-citation, and co-word analysis, this study analyses 941 articles published on Web of Science from 1978 to 2019. Findings reveal that despite there being a latent concentration in citations distribution, the ascending and descending influence patterns discovered over time indicate a dynamic flow and healthy growth of the field. The analysis of the intellectual structure identifies four main areas of research, with hospitality and tourism being the most developed, and the journals about hospitality being the preferred channel for research into the sharing economy. Finally, for the cognitive structure analysis, in-depth strategic diagrams, thematic evolution, and trend analysis disclose some research gaps. Thus, we contribute to the sharing economy literature by inductively synthesizing, and organizing SE research, and by proposing future research directions.     

New measuring stick on sharing accommodation: Guest-perceived benefits and risks

As an emergent phenomenon fueled by advanced technology, the sharing economy enables people to capitalize on underutilized physical assets that would otherwise be wasted. Despite the rapid growth, existing empirical studies are limited to the adoption of scales from other disciplines, although collaborative consumption differs from commercial consumption. The purpose of the study is to examine guests’ perceived risks and benefits of sharing accommodation. Using three folded studies, this research attempts to yield key theoretical contributions by developing a scale for perceived benefits and risks in the context of sharing accommodation. Furthermore, this study provides initial insights into why consumers would avoid sharing accommodations while at the same time identifying potential benefits and risks in relation to attitude and behavioral intentions. The findings from this research will enable sharing accommodation hosts to understand consumers’ perceived benefits and risks and thus provide enhanced experiences to users.     

Stars vs lemons. Survival analysis of peer-to peer marketplaces: the case of Airbnb

This paper analyses the determinants of listings' survival on peer-to-peer marketplaces. Working on a dataset of Airbnb listings in Ibiza, we implement survival analysis to estimate the relationship between listings' key attributes and the probability to leave the platform. In addition, we highlight the importance of user-generated content to reduce the asymmetry of information and prevent adverse selection. Results confirm that listings' characteristics, location, degree of local competition and hosts' managerial skills, significantly affect the survival chance. Moreover, we found that low quality listings (proxied by the customer rating) are intended to disappear: the reviewing system successfully signals the quality on this market and drive the market selection process.     

Effect of crowd wisdom on pricing in the asset-based sharing platform: An attribute substitution perspective

Technological advancement has led to the emergence of online platforms fueled by the sharing economy across various industries. This study focuses on Airbnb - a specific asset-based sharing platform in the hospitality industry. Applying the theory of attribute substitution, we explore the wisdom of the crowd manifested in online reviews, in impacting pricing. We found that online review valence and volume have a positive association with room price. Depending on the crowdedness of the location this association is stronger or weaker. Customers care more about room popularity (volume) in a certain area when the fast system of decision-making is triggered. When, however, the slow system is triggered, customers consider the crime rate of a location (valence). Findings show how environmental stimuli and customer reviews decide room price - a variable that was decided traditionally by companies (e.g., hotels). The research furthers our understanding on asset-based platforms in the sharing economy.     

The eruption of Airbnb in tourist cities: Comparing spatial patterns of hotels and peer-to-peer accommodation in Barcelona

In recent years, what has become known as collaborative consumption has undergone rapid expansion through peer-to-peer (P2P) platforms. In the field of tourism, a particularly notable example is that of Airbnb. This article analyses the spatial patterns of Airbnb in Barcelona and compares them with hotels and sightseeing spots. New sources of data, such as Airbnb listings and geolocated photographs are used. Analysis of bivariate spatial autocorrelation reveals a close spatial relationship between Airbnb and hotels, with a marked centre-periphery pattern, although Airbnb predominates around the city's main hotel axis and hotels predominate in some peripheral areas of the city. Another interesting finding is that Airbnb capitalises more on the advantages of proximity to the city's main tourist attractions than does the hotel sector. Multiple regression analysis shows that the factors explaining location are also different for hotels and Airbnb. Finally, it was possible to detect those parts of the city that have seen the greatest increase in pressure from tourism related to Airbnb's recent expansion.     

Spanning across the boundary of Airbnb host community: a network perspective

The success of Airbnb has not only provided people with an alternative way of managing their living spaces but also created a rapidly growing number of Airbnb host communities. Guided by boundary spanning theory, this study examines how Airbnb host online communities evolve through novel organizational forms. Data for this study were collected from an online Airbnb host community from which two stages of analysis were performed. These included social network analysis and content analysis. The findings indicate that the online community functions as an informal specialized sub-unit of Airbnb and that hosts’ roles in the organization involve a number of boundary spanning aspects. The research contributes to an evolving understanding of hosts in the peer-to-peer (P2P) accommodation literature as well as extending the theory of boundary spanning in its application to the sharing economy context.     

Measuring perceived risk in sharing economy: A classical test theory and item response theory approach

Sharing economy is considered as a disruptive innovation in the Internet age and inevitably brings huge concerns and risks for tourists. This study aims to develop a multidimensional scale to understanding the tourist risk perception in the sharing economy (TPRSE). First, focus group interviews, and online text analysis were conducted to elicit the initial items. Second, pilot survey involving a sample size of 218 was conducted, confirmatory factor analysis (CFA), and item response theory (IRT) were applied to refine this preliminary item pool. Third, the TPRSE scale was further validated using the CFA and IRT (n = 745). The TPRSE scale was successfully developed and validated, which including five dimensions of financial risk, social risk, privacy risk, performance risk and physical risk. This study advances the theories of risk perception in the context of sharing economy and provides management strategies to reduce perceived risks in Airbnb accommodations.     

A pathway to consumer forgiveness in the sharing economy: The role of relationship norms

The emergence of peer-to-peer accommodations has revolutionized the hospitality industry. Yet, research on peer-to-peer service failures and consumer forgiveness remains scant. This paper shows that relationship type—whether communal ("Airbnb host") or exchange ("hotel")—influences consumer forgiveness in a post-recovery context. Across five studies, this research demonstrates how peer providers (focusing on communal norms) versus conventional providers (focusing on exchange norms) influence consumer forgiveness and their responses to service recovery efforts. Our findings indicate that focusing on social service recovery is particularly effective for Airbnb hosts. These findings have important implications for crafting effective service recovery strategies based on the type of accommodation provider-customer relationship. Finally, our findings can also help peer-to-peer and conventional hospitality providers alleviate consumers’ negative responses to service failures.     

Exit and transition: Exploring the survival status of Airbnb listings in a time of professionalization

This study analyzes the survival status of shared and non-shared listings in the peer-to-peer accommodation market. Using a large data set from Airbnb in Beijing, we identify 8640 shared listings and 50,741 non-shared listings. We then investigate the exit event and the identity transition event for both types of listings by applying a discrete-time hazard model. Our results suggest that, for the exit event, the two types of listings show significant differences in terms of survival determinants, including response time, tourism specialization, market volume, professionalization, and Covid-19. For the identity transition event, we find that internal flow exists in the market, mainly from shared listings to non-shared listings, and this flow is influenced by certain factors (i.e., capacity, facility, rating, reviews, minimum stay, service quality, tourism specialization, market volume, platform professionalization, and Covid-19).     

Exploring the Role of Travel and Tourism in Sharing Economy Activities: A Case Study of South Korea

This study explores the role of travel and tourism in sharing economy activities by using a case study of Seoul, South Korea. The findings reveal 1) significant associations between respondents’ demographic and socio-economic characteristics and their participation level in diverse sharing economy activities; 2) significant differences in future intention to participate in diverse sharing economy activities among groups; and 3) interest in travel and tourism was most strongly related to future intention to participate in diverse sharing economy activities. Policy making implications of the sharing economy focused on the role of travel and tourism are discussed in the conclusion.