Airbnb pricing:iIdentifying primary determinants through hedonic pricing methods

Abstract

In this thesis, we examine what determinants are the most significant in pricing an Airbnb listing, using the city of Athens as a case study and Rome as a testing ground for our findings. As far as we know, Athens has not been tested in empirical studies as a standalone example, so we hope this study will add to the knowledge of Airbnb hosts, policymakers and stakeholders in general. We present certain descriptive statistics that give an intuitive understanding of Airbnb’s presence in Athens. Furthermore, we identify nine core variables that can explain adequately the pricing of a listing and give additional weight to the distance variable, measured with different metrics as to better understand how a listing’s position can increase or decrease its price. Finally we give some views as to what the next steps might be in better comprehending how a listing is priced and how Athens stands out as a case study.