Dynamic pricing and benchmarking in AirBnB

AbstractSince Airbnb opened in 2008, renting private accommodation has evolved into a strong market presence worldwide. Recent research has focused on whether this new supply will negatively affect hotel performance. Studies mainly focus on market performance and professionalization, but there is an absence of research regarding available knowledge and experience of pricing considerations. This research focuses on pricing decisions for individual apartment rental, examining the relationship between Airbnb pricing and knowledge transfer from related fields, such as hotel revenue management, benchmarking and online travel agencies. The primary research was conducted through semi-structured interviews with industry professionals, complemented by data examples that show the relevance of individual pricing. Findings confirm that applied revenue management and benchmarking concepts can enhance a host’s booking performances. Motivation and pricing experience amongst professional/non-professional hosts differ. Benchmarking professionals identify that market research becomes a key activity for running a successful business