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A first look at online reputation on Airbnb, where every stay is above average

Author

Listed:
  • Georgios Zervas

    (Boston University)

  • Davide Proserpio

    (University of Southern California)

  • John W. Byers

    (Boston University)

Abstract

Judging by the millions of reviews left by guests on the Airbnb platform, this trusted community marketplace for accommodations is fulfilling its mission of matching travelers with hosts having room to spare remarkably well. Based on our analysis of ratings, we collected for millions of properties listed on Airbnb worldwide, we find that nearly 95% of Airbnb properties boast an average star-rating of either 4.5 or 5 stars (the maximum); virtually none have less than a 3.5 star-rating. We contrast this with the ratings of roughly 700,000 hotels, B&Bs, and vacation rentals worldwide that we collected from TripAdvisor. We find that hotel and B&B average ratings are much lower—3.8 and 4.1 stars, respectively—with much more variance across reviews. TripAdvisor vacation rental ratings are more similar to Airbnb ratings, but only about 85% of properties have an average rating of 4.5 or 5 stars. We then consider properties cross-listed on both platforms. For these properties, we find that even though the average ratings on Airbnb and TripAdvisor are more similar than hotels and B&Bs, proportionally more properties receive the highest ratings (4.5 stars and above) on Airbnb than on TripAdvisor. Moreover, there is only a weak correlation in the ratings of individual cross-listed properties across the two platforms. Finally, we show that these differences are consistent when considering data from two different time periods: 2015 and 2018.

Suggested Citation

  • Georgios Zervas & Davide Proserpio & John W. Byers, 2021. "A first look at online reputation on Airbnb, where every stay is above average," Marketing Letters, Springer, vol. 32(1), pages 1-16, March.
  • Handle: RePEc:kap:mktlet:v:32:y:2021:i:1:d:10.1007_s11002-020-09546-4
    DOI: 10.1007/s11002-020-09546-4
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    2. Nicolas Eschenbaum & Helge Liebert, 2021. "Dealing with Uncertainty: The Value of Reputation in the Absence of Legal Institutions," Papers 2107.11314, arXiv.org.
    3. Josef Zelenka & Tracy Azubuike & Martina Pásková, 2021. "Trust Model for Online Reviews of Tourism Services and Evaluation of Destinations," Administrative Sciences, MDPI, vol. 11(2), pages 1-21, March.
    4. Anna Isabelle Gomes Pereira Santos & André Riani Costa Perinotto & Jakson Renner Rodrigues Soares & Tiago Savi Mondo & Priscila Cembranel, 2022. "Expressing the Experience: An Analysis of Airbnb Customer Sentiments," Tourism and Hospitality, MDPI, vol. 3(3), pages 1-21, August.
    5. Dalia Perkumienė & Milita Vienažindienė & Biruta Švagždienė, 2021. "The Sharing Economy towards Sustainable Tourism: An Example of an Online Transport-sharing Platform," Sustainability, MDPI, vol. 13(19), pages 1-18, October.
    6. Dai Yao & Chuang Tang & Junhong Chu, 2023. "A Dynamic Model of Owner Acceptance in Peer-to-Peer Sharing Markets," Marketing Science, INFORMS, vol. 42(1), pages 166-188, January.
    7. Arslan Aziz & Hui Li & Rahul Telang, 2023. "The Consequences of Rating Inflation on Platforms: Evidence from a Quasi-Experiment," Information Systems Research, INFORMS, vol. 34(2), pages 590-608, June.
    8. Bobrovskaya, Ekaterina & Polbin, Andrey, 2022. "Determinants of short-term rental prices in the sharing economy: The case of Airbnb in Moscow," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 65, pages 5-28.
    9. David Dann & Timm Teubner & Sunil Wattal, 2022. "Platform Economy: Beyond the Traveled Paths," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 64(5), pages 547-552, October.
    10. Tao Liu & Kewei Shi & Lingli Hu & Yuqing Liu & Yunyao Liu, 2023. "A New Instrument for Measuring Customers’ Perceptions of Service Warmth: A Big Data and Machine Learning Approach," SAGE Open, , vol. 13(4), pages 21582440231, December.
    11. Andrey Fradkin & Elena Grewal & David Holtz, 2021. "Reciprocity and Unveiling in Two-Sided Reputation Systems: Evidence from an Experiment on Airbnb," Marketing Science, INFORMS, vol. 40(6), pages 1013-1029, November.
    12. Xue, Lan & Leung, Xi Y. & Ma, Shihan (David), 2022. "What makes a good “guest”: Evidence from Airbnb hosts' reviews," Annals of Tourism Research, Elsevier, vol. 95(C).
    13. Steffen, Nico & Wiewiorra, Lukas & Kroon, Peter, 2021. "Wettbewerb und Regulierung in der Plattform- und Datenökonomie," WIK Discussion Papers 481, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    14. Karl Taeuscher & Eric Yanfei Zhao & Michael Lounsbury, 2022. "Categories and narratives as sources of distinctiveness: Cultural entrepreneurship within and across categories," Strategic Management Journal, Wiley Blackwell, vol. 43(10), pages 2101-2134, October.
    15. Gössling, Stefan & Larson, Mia & Pumputis, Aurimas, 2021. "Mutual surveillance on Airbnb," Annals of Tourism Research, Elsevier, vol. 91(C).
    16. Lena Abou El-Komboz & Anna Kerkhof & Johannes Loh, 2023. "Platform Partnership Programs and Content Supply: Evidence from the YouTube “Adpocalypse”," CESifo Working Paper Series 10363, CESifo.
    17. Asad Mohsin & Jorge Lengler, 2021. "Airbnb Hospitality: Exploring Users and Non-Users’ Perceptions and Intentions," Sustainability, MDPI, vol. 13(19), pages 1-20, September.

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