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A sharing economy accommodation service like Airbnb, which provides trust between strangers to connect them for profiting from underutilized assets, was born and has thrived thanks to the innovations in the platform technology. Due to the unique structure of Airbnb, the pricing strategies of hosts are very different from the conventional hospitality industry. However, existing Airbnb pricing studies have limitations considering the varying scale of operation among hosts, spatial variances in pricing strategies, and crucial geographic information for estimating the influence of the pricing variables, as well as ignoring inter-city variances. In this research, we explored the spatially heterogeneous relationship between price and pricing variables using an innovative spatial approach, Multiscale Geographically Weighted Regression (MGWR). Analysis results for Airbnb listing in Log Angeles and New York in the US showed the effectiveness of MGWR regarding estimating the influence of pricing variables spatially. By revealing spatially heterogeneous and dependent relationships, this research fills gaps in Airbnb pricing research and deepens the understanding of the pricing strategies of the hosts.

Analyzing Spatial Variance of Airbnb Pricing Determinants Using Multiscale GWR Approach