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AirBnB's Pricing Algorithm

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Re: AirBnB's Pricing Algorithm

#31
post #21

I still don't understand how's staying at an airbnb rental is more compelling than staying at a hotel. From my experience, Airbnb has only a single upside: you get to stay at someone else's place, which has a quite different vibe from a hotel. One the flip-side, compared to a hotel, the prices are considerably higher, you have to negotiate with a host on checkin time (most of the times), and overall you don't have an…

This is anecdotal, but staying in Airbnbs made my cross country drive from Richmond, VA to Seattle much better than if I had stayed in hotels.

1) The prices were significantly cheaper. I stayed in a room in a beautiful home in Spokane for $35 a night. Sure, you can find rundown 2 star "hotels" for $50 - $60 a night, but trying to find something of comparable quality in a hotel would increase that substantially. Where Airbnb was great was in little towns and areas in the midwest. I stayed in the entire top floor of the most amazing, one hundred year old creamery turned bar turned home in Fertile, IA for $65. Hotels in any nearby city / town were much more and couldn't come close to matching the value.

2) Being able to stay in interesting places really is a benefit. I stayed with an amateur chef in Cincinnati who cooked a fantastic breakfast that otherwise would have cost me $15 at a hotel. I stayed with Yellowstone guides in Belgrade, MT that told me exactly where I need to go the park next time I visit. When I was tired some days and wanted the hotel experience, hosts were more than happy to let me have that.

3) If you want to be really sure you're staying somewhere great, look for superhosts. I never had an experience that didn't match up with the reviews that a host received. Reviews on airbnb actually make hosts and guests accountable for the quality of the stay.

4) The local experience is what you make of it. Hosts typically will let you control the amount of interaction you want to have. It's impossible for them to predict what everybody wants, so you have to communicate.

All of your points don't match up at all with what my experience has been. I love the experience and quality Airbnb helps provide and hotels are always my second choice now.

Re: AirBnB's Pricing Algorithm

#32
post #29
post #21

I still don't understand how's staying at an airbnb rental is more compelling than staying at a hotel. From my experience, Airbnb has only a single upside: you get to stay at someone else's place, which has a quite different vibe from a hotel. One the flip-side, compared to a hotel, the prices are considerably higher, you have to negotiate with a host on checkin time (most of the times), and overall you don't have an…

I'll typically use Airbnb for business travel - it's always been cheaper than the average hotel (after some searching), and it fits well with my preference against neatly-packaged things. That said: in my experience, the "local experience" schtick is pure BS. Airbnb is at an awkward midpoint between hotels and Couchsurfing: it lacks both the predictable experience of the former and the possibilities for awesome inter…

I used the word "predecessor" with a more of an ironic connotation. The awkward midpoint is spot on.

Like it or not, but all of the hospitality exchange networks seem to have failed so far (provided that a success implies creating value, with an indicator being profit and/or number of members). Even Couchsurfing, the most "successful" one of those was originally started as a service to find a free place to stay. It just happened that a great community formed around it. If we leave the community out, Airbnb in its essence is a "paid" hospitality exchange network.

In a way Airbnb derives from the ideals of sharing economy, being a more of a peer-to-peer marketplace which promotes itself as a hospitality exchange service.

Re: AirBnB's Pricing Algorithm

#33
post #21

I still don't understand how's staying at an airbnb rental is more compelling than staying at a hotel. From my experience, Airbnb has only a single upside: you get to stay at someone else's place, which has a quite different vibe from a hotel. One the flip-side, compared to a hotel, the prices are considerably higher, you have to negotiate with a host on checkin time (most of the times), and overall you don't have an…

You're forgetting families, folks who prefer to cook their own food, and the fact that in many places, AirBNBs can let you sleep more people than a hotel room for less money. Also, depending on your destination, there might be AirBNBs where there aren't hotels (in city neighborhoods, near your relatives, etc.).

Hotels still work for some folks, some of the time. Likewise AirBNBs/VRBOs, etc. Different benefits, but they're definitely there.

Re: AirBnB's Pricing Algorithm

#34
post #21

I still don't understand how's staying at an airbnb rental is more compelling than staying at a hotel. From my experience, Airbnb has only a single upside: you get to stay at someone else's place, which has a quite different vibe from a hotel. One the flip-side, compared to a hotel, the prices are considerably higher, you have to negotiate with a host on checkin time (most of the times), and overall you don't have an…

Some Airbnb listings offer discounts for 7+ day or 30+ day stays, and the savings can then be substantial. Even for shorter stays, it can often still be cheaper than comparably clean+handy hotels, especially if you factor in that things like Internet and parking are almost always included for free.

I've found evaluating a listing basically means reading every review and assuming any negative element mentioned will be arbitrarily bad, even if the reviews are positive and say it's "no big deal." I remember seeing one listing where multiple reviewers complained there was structural damage to the building through which feral cats entered and urinated on guests' property but said it wasn't a major problem.

If the reviews mention street noise, assume there will be drunken revelers outside until dawn all night. If the reviews mention shedding pets, assume every surface will be covered in cat or dog hair. If they say the host is overly talkative, picture a humorless version of Robin Williams trying to be your personal genie.

If the negatives don't bother you--you love animals, you don't mind noise, you're not bringing a car so nonexistent parking isn't an issue--then go ahead and rent the place.

Re: AirBnB's Pricing Algorithm

#35
post #21

I still don't understand how's staying at an airbnb rental is more compelling than staying at a hotel. From my experience, Airbnb has only a single upside: you get to stay at someone else's place, which has a quite different vibe from a hotel. One the flip-side, compared to a hotel, the prices are considerably higher, you have to negotiate with a host on checkin time (most of the times), and overall you don't have an…

I use AirBNB on nearly every trip my family takes. AirBNB has the best interface for vacation property rentals. VRBO and HomeAway have improved a lot in the past few years, so it's less of a win now, but for an important window, the dynamic AirBNB interface blew the old static VRBO interface out of the water.

As for why I prefer an apartment rental, that's entirely down to family stuff. With two adults and two kids, we can share two queen beds in a hotel room, but that's tight. When the kids go to bed at 8pm, I have to take my computer down to the lobby to work or play. We can get two adjoining rooms, but that's expensive. In an AirBNB, I close the door to their bedroom, and sit in the living room right next door with my wife and all the amenities of the listing. When they get up at 5am due to jetlag, I can sleep in in the master bedroom while they play in the living room and watch TV. AirBNBs also usually have full kitchens. That's nice both for making full breakfasts in the morning (my wife likes eggs, and it's a lot cheaper to make a quick scramble on the kitchen stove than go out), and for re-heating the kids leftovers from the restaurant meal we had the night before.

Hotels also generally provide full daily housekeeping services. That adds to the cost. I don't need someone to make my bed for me every day. I can do it myself in 2 minutes.

Re: AirBnB's Pricing Algorithm

#36
post #24
post #21

I still don't understand how's staying at an airbnb rental is more compelling than staying at a hotel. From my experience, Airbnb has only a single upside: you get to stay at someone else's place, which has a quite different vibe from a hotel. One the flip-side, compared to a hotel, the prices are considerably higher, you have to negotiate with a host on checkin time (most of the times), and overall you don't have an…

I travel frequently and have tried replacing the usual hotel chain with an airbnb. I totally agree, the hassle of dealing with hosts and being left disappointed a few times, it's not worth it (for me). Where I found airbnb more useful (and cheaper) is when my family is in town and we're traveling somewhere and we usually book a whole apartment/house with multiple bedrooms. That is usually cheaper than booking 2 or 3…

Homeaway and VRBO are the same site now.

Also, when AirBNB launched, their web interface was vastly better than VRBOs. VRBO is a lot better now, but it's still clearly an older site with some improvements.

Re: AirBnB's Pricing Algorithm

#37
post #25

Earlier quoted context omitted.

It's kind of fun to stay in somebody else's place. I do think there's something to be said for that. And, it IS frequently cheaper than a hotel. Many times, depending on where you're staying, it could also be more convenient. It's a B(nB) for the masses, and I don't really mind that. There of course is still room for the hotel industry, and I don't really think this is making a dent in their business. It's just diffe…

Outside of US it seems that the main customers of Airbnb rentals are Americans, and therefore often you see a price tag a few times higher than a price of a hotel in the area. I've never seen an Airbnb cheaper than a hotel. If you want a local price, you got to use local websites, or simply ask around or walk in a hotel/bnb. Nothing beats an offline price negotiation with a hotel manager, especially for long-term sta…

Just as an example, I booked an AirBNB in Brighton UK for around $100/night with hotels in the area running $200+/night.

Re: AirBnB's Pricing Algorithm

#38
post #7

This is the difference between airbnb and google. Google would have Hal Varian look at this. Airbnb has a music major re-invent the wheel (not sure if the managed to re-invent the whole thing). There is a whole field of study called pricing mechanisms. For example, second price auctions work well because of a reason.

so what you are saying is that someone with a creative background also managed to do non-trivial data science work that affects more than a million decisions made?

I admire that, a lot, actually.

Re: AirBnB's Pricing Algorithm

#39
post #21

I still don't understand how's staying at an airbnb rental is more compelling than staying at a hotel. From my experience, Airbnb has only a single upside: you get to stay at someone else's place, which has a quite different vibe from a hotel. One the flip-side, compared to a hotel, the prices are considerably higher, you have to negotiate with a host on checkin time (most of the times), and overall you don't have an…

It sounds like you are ignorant of airbnb's services and have likely never used them.

> I still don't understand how's staying at an airbnb rental is more compelling than staying at a hotel.

> the prices are considerably higher

I am in the middle of the valley and I rent bedrooms for $60-$120 depending on season and demand. I've seen entire apartments for less than $100 a night in my area as well. When I first moved here I stayed in a shared space for ~$40 / night for a few weeks.

I challenge you to show me a nice hotel for less than twice that price. The Sheraton near my office is usually > $350 / night.

> Once you checked into you Airbnb rental, you are on your own

Any good host will be more than willing to provide recommendations on local services. Many will also already have their guidebook on airbnb filled out which has a map of local recommendations. Airbnb is built on two way feedback between hosts and guests. As a host would you really risk a poor review over not spending 5-20 minutes to help orient a guest?

Re: AirBnB's Pricing Algorithm

#40
post #17

> We selected a machine-learning model called a classifier. Almost all machine learning tools are classifiers of some sort. It's like saying: we selected a car technology called "wheel".

I think you have an overly narrow view of machine learning or a very broad view of what classifications are.
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