Opening book details…
Can I read Optimal pricing strategies for Airbnb when competing with incumbents on two sides on EtoBox?
Optimal pricing strategies for Airbnb when competing with incumbents on two sides by Qing Zheng; Da Ke; Xuan Li is a Business, Management and Accounting article available to read on EtoBox.
What is Optimal pricing strategies for Airbnb when competing with incumbents on two sides about?
Emerging sharing accommodation such as Airbnb provides additional options to both guests with short-term accommodation needs and hosts with spare rooms, which challenges the traditional hospitality industry. This paper explores Airbnb’s optimal pricing strategies when competing with incumbents on both supply and demand sides in the accommodation market. Firstly, we employ the willingness-to-pay model to obtain Airbnb’s and hotel’s proportions on short-term accommodation demand side, and proportions of Airbnb and long-term rentals on spare room supply side. Then, we obtain Airbnb’s optimal pricing in different market situations by optimisation models that maximise the profit. Finally, optimal price and wage strategies are given in friendly, neutral and unfriendly markets by simulations. It is found that Airbnb may drive incumbents out of the accommodation market under certain conditions. And different pricing strategies should be taken for Airbnb to compete with different levels of hotels. Suggestions to traditional platforms and governments are offered.
Who reads Optimal pricing strategies for Airbnb when competing with incumbents on two sides?
It is typically read by researchers, students, and practitioners in Business, Management and Accounting.
- Author
- Qing Zheng; Da Ke; Xuan Li
- Publisher
- Elsevier BV
- Published
- 2023
- Language
- EN
- Field
- Business, Management and Accounting (Social Sciences)