Data-driven study: impact of COVID-19 on airbnb

Abstract

Airbnb, the world’s largest platform that facilitates P2P accommodation had disrupted the renting economy over the past few years by its business model of sharing economy in various parts of the world. However, the COVID-19 pandemic, (referred to as COVID henceforth) has disrupted this very disruptor. Demand has declined dramatically across Airbnb listings across the world and several hosts have taken their listings off the platform. Thus, a data driven study shows the extent and nature of how, where and why this has happened. COVID has impacted the platform from demand and supply side. The number of active listings has declined in most major cities across all continents. Listings with a good track record of good ratings, especially cleanliness and a longer history of guesting have survived better than others. Hosts have also responded to decline in demand with a price reduction. COVID has also led to shift in customer segment with higher demand for long-term stays and reduced demand for short-term stays. In Amsterdam particularly, higher priced listings and ones with private rooms have seen a lesser decline in demand. Although the overall sentiment in review comments has remained positive, the extent of positivity has declined during the pandemic. This decline has been far more in Amsterdam than New York. Price of listings depends on credibility and successful guesting history of the host apart from basic factors influencing real estate rentals or prices. Vaccinations have improved the demand for listings, although their effect is still partially significant in Amsterdam.