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The What, Where, and Why of Airbnb Price Determinants

Building Sciences and Urbanism Department, University of Alicante, Carretera de San Vicente del Raspeig s/n, San Vicente del Raspeig, 03690 Alicante, Spain
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Sustainability 2018, 10(12), 4596; https://doi.org/10.3390/su10124596
Received: 31 October 2018 / Revised: 26 November 2018 / Accepted: 3 December 2018 / Published: 5 December 2018
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Abstract

Breakthrough changes in the rental market have occurred with the introduction of peer-to-peer accommodation services such as Airbnb. This phenomenon is attracting tourists who contribute to the sustainability of local trade and the economic development of the city. This research enriches the current debate on the range of factors that influence Airbnb accommodation prices. To that end, a method was developed to understand the relationship between Airbnb accommodation attributes and listing prices; and to consider variables related to the properties’ location and surrounding urban environment, considering the touristic characteristics of the four Spanish Mediterranean Arc cities selected as case study. A multivariable analysis technique is used for estimating a hedonic price model that adopts the ordinary least squares and the quantile regression methods. The findings obtained for the impact of location on listing prices are contrary to previous studies. In fact, accommodation prices increase incrementally by 1.3% per kilometer from the tourist area, which in all four cases are situated in the historic area of the city. However, at the same time, accommodation prices decrease incrementally as distance from the coastline increases. Lastly, results related to how the listings’ accommodation, host, and advertising characteristics impact Airbnb prices concur with previous studies. View Full-Text
Keywords: Airbnb; price determinants; touristic cities; accommodation prices; ordinary least squares; quantile regression method; sustainability; urban environment; collaborative consumption Airbnb; price determinants; touristic cities; accommodation prices; ordinary least squares; quantile regression method; sustainability; urban environment; collaborative consumption
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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Perez-Sanchez, V.R.; Serrano-Estrada, L.; Marti, P.; Mora-Garcia, R.-T. The What, Where, and Why of Airbnb Price Determinants. Sustainability 2018, 10, 4596.

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