Valuation Models for Holiday Rentals’ Daily Rates: Price Composition Based on Booking.com

José António C. Santos, Manuel Á. Fernández-Gámez, Miguel Ángel Solano-Sánchez, Francisco José Rey-Carmona and Lorena Caridad y López del Rio
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José António C. Santos: ESGHT (School of Management, Hospitality and Tourism) and CinTurs (Research Center for Tourism, Sustainability and Well-Being), Universidade do Algarve, 8139 Faro, Portugal
Manuel Á. Fernández-Gámez: Department of Finance and Accounting, University of Malaga, 29016 Malaga, Spain
Miguel Ángel Solano-Sánchez: Faculty of Law and Business and Economic Sciences, University of Cordoba, 14071 Cordoba, Spain
Francisco José Rey-Carmona: Faculty of Law and Business and Economic Sciences, University of Cordoba, 14071 Cordoba, Spain
Lorena Caridad y López del Rio: Faculty of Law and Business and Economic Sciences, University of Cordoba, 14071 Cordoba, Spain

Sustainability, 2020, vol. 13, issue 1, 1-15

Abstract: In recent years, the number of sharing economy accommodations has grown exponentially due to the Internet and peer-to-peer networks, which has made researchers increasingly interested in analysing this new type of lodging. This study sought to develop models that determine the significant variables for the daily price of staying in holiday rentals based on data extracted from Booking.com and other sources. The hedonic pricing method (HPM) was selected to conduct the research as this methodology has been widely used in real estate valuation and hotel daily rate determination; however, the HPM is still rarely used for holiday rentals. The study focused on the city of Seville, where a notable increase in holiday rentals has been observed in recent years. Variables related to the accommodation typology, including location, size and equipment, as well as seasonality, are the most influential factors in the proposed models. These results are of interest to both owners and users of holiday rentals and can help these individuals to determine if the price of a stay is what would commonly be offered in the market under normal circumstances.

Keywords: holiday rental; daily rate pricing; sharing economy; hedonic pricing method; Booking.com (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
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