Dynamic Pricing in Short-Term Rentals: An Empirical Examination of Airbnb Listings

Ran Ji; Xuting Huang; Yaxin Qian

doi:10.54254/2754-1169/2024.25024

Advances in Economics, Management and Political SciencesOpen access

Dynamic Pricing in Short-Term Rentals: An Empirical Examination of Airbnb Listings

Research Article

Open Access

Dynamic Pricing in Short-Term Rentals: An Empirical Examination of Airbnb Listings

Ran Ji ^1* Xuting Huang ², Yaxin Qian ³

¹ University of California, Irvine

² University of Washington

³ New York University

^*Corresponding author: rji6@uci.edu

Published on 11 July 2025

AEMPS Vol.202

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-263-8

ISBN (Online): 978-1-80590-264-5

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Abstract

With the rapid growth of Airbnb, the nature of the short-term rental market has changed. Therefore, getting an in-depth knowledge of those drivers that influence pricing strategies is essential. On a dataset of about 75,000 Airbnb listings, this paper analyzes variables related to room type, cancellation policy, and quality of amenities. This paper uses both linear regression and decision tree models to quantify the direct effects of these variables on rental prices. The results of this study underline strong influences from property type, accommodation capacity, and policy settings as critical factors on pricing, thus helping Airbnb hosts optimize their pricing strategies. This paper has further implications for the sharing accommodation market and provides valuable information to many policy decision-makers and market analysts. The results promote more informed decision-making for hosts and enhance customer satisfaction, benefiting both property owners and guests.

Keywords:

Airbnb, pricing strategy, linear regression, decision tree, short-term rental market

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References

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References

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Cite this article

Ji,R.;Huang,X.;Qian,Y. (2025). Dynamic Pricing in Short-Term Rentals: An Empirical Examination of Airbnb Listings. Advances in Economics, Management and Political Sciences,202,155-167.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of the 3rd International Conference on Financial Technology and Business Analysis

ISBN: 978-1-80590-263-8(Print) / 978-1-80590-264-5(Online)

Editor: Ursula Faura-Martínez

Conference website: https://2024.icftba.org/

Conference date: 13 June 2025

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.202

ISSN: 2754-1169(Print) / 2754-1177(Online)

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