A follow-up on their previous research, ‘It’s only pixels, badges, and stars‘, this report by Teubner et al. measures the economic value of reputation on Airbnb. Based on listings from 86 German cities, the authors find that hosts’ average rating scores, a longer duration of platform membership, and more apartment photos contribute to higher rental prices.
Study highlights and key findings:
- An increase by one star is associated with an average price markup of 18 US$.
- An increase of one month of membership translates into a markup of about 0.5 US$ and the display of an additional apartment photo in 1 US$.
- The effect of ID verification and Superhost status are insignificant.
- Interestingly, there is a negative association between the number of ratings and listed price.
- The host’s personal attributes (appearance in profile photo or gender) do not significantly impact price.