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

Ulrich Gunter and Irem Önder
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Ulrich Gunter: MODUL University Vienna, Austria
Irem Önder: MODUL University Vienna, Austria

Tourism Economics, 2018, vol. 24, issue 3, 270-293

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.

Keywords: Airbnb; city tourism; demand modeling; sharing economy (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:24:y:2018:i:3:p:270-293

DOI: 10.1177/1354816617731196

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