Airbnb Case- Assignment 2

Airbnb is an internet firm that helps travelers discover and book unique accommodations offered by hosts around the world, with a room or house available for short-term rental.

As of 2016, Airbnb offers more than 3 million listings in over 65,000 cities and nearly 200 countries and is valued at $30 billion.

Some local governments have deemed Airbnb as illegal or subjected it to severe local restrictions. Imagine a city, where listing homes on Airbnb was illegal due to concerns that it is raising home values and making ownership unaffordable, now decides to allow the firm to operate as long as it pays travel taxes.

To grow in local marketplace, Airbnb hires you to come up with a plan and execute it.

You run two studies in the Eugene, Oregon Market. The first study is a customer study and the second study is a host study.

Based on your reading of the case and the model estimates presented in this document, please answer the following questions.

Questions:

1. List each statistically significant predictor of a travelers likelihood to book on Airbnb (P-value < .10) (15 points)

2. Provide a brief description of what may cause a significant statistical relationship for each variable (15 points)

3. What would be your plan of attack to attract travelers to Eugene to book on Airbnb? (20 points)

4.List each statistically significant predictor of Hosts likelihood to remain on Airbnb (P-value < .10) (15 points)

5. Provide a brief description of what may cause a significant statistical relationship for each variable (15 points)

6. What would be your plan of attack to entice Hosts/Owners to list accommodations on Airbnb? (20 points)

Customer Study

Data from 3000 customers.

Table 1:Description of Variables

Variable	Description
Email_25	Promotion of $25 off on Airbnb (1), no promotion(0)
Email_Taxi	Promotion of free transportation from the airport to Eugene destination booked (1), no free transportation (0)
Base Case	Welcome email from Airbnb with a 30-second video of Eugene
*mail	Use *mail(1)
Yahoo	Use Yahoo mail (1)
Edu	Have a .edu email (1)
AlaskaFF	Alaska account status :1-not a frequent flier, 2-frequent flier member, 3-MVP frequent flier member
Address	1-out of state, 2-Oregon but not Eugene or Springfield, 3-Eugene or Springfield
Age	Customers Age
Tickets	Number of Tickets booked on itinerary
Round Trip	Roundtrip departing Eugene in less than 14 days (1), one way to Eugene (0)

Table 2:Customer Model Results

Variable	Coefficients	Standard Error	T-Values	P-Values
(Intercept)	-0.74	0.40	-1.86	0.06
Email_25	0.60	0.14	4.38	0.000
Email_Taxi	0.22	0.14	1.53	0.13
*mail	0.29	0.14	2.11	0.04
Yahoo	-0.17	0.18	-0.97	0.33
Edu	0.52	0.19	2.79	0.005
AlaskaFF	0.29	0.11	2.56	0.01
Address Oregon Vs out of state	-0.34	0.13	-2.70	0.007
Address Eugene/Springfield Vs out of state	-1.57	0.15	-10.28	0.000
Age	-0.05	0.007	-7.11	0.000
Tickets	-0.04	0.05	-0.68	0.50
Round Trip	0.47	0.21	2.30	0.022

Host Study

Data from 400 hosts.

Table 3: Description of Variables

Variable	Description
Choice	If the accommodation is still listed on Airbnb, Yes(1), No(0)
Length	How long they were on Airbnb in days
Type_Hm	Listing type: 0=shared room or private room, 1=entire home
Guests	Number of guests the listing accommodates
Zestimate_K	Zillow (real-estate marketplace) estimate of property value in thousands of dollars
ListPrice	Average listing price on Airbnb per night
Rating	Average rating by Airbnb guests
Rev_AbB	Revenue generated in one year for Airbnb via its property fee
Location	1= campus to downtown to whitakar, 2=Fairmont to Amazon to south Eugene Hills, 3=Friendly to west Eugene, 4=North Eugene, 5= Springfield, 6= other outskirt locations (base case)

Table 4: Host Model Results

Variable	Coefficients	Standard Error	T-Values	P-Values
(Intercept)	-3.214	1.084	-2.964	0.003
Length	0.002	0.001	2.138	0.033
Type_Hm	0.638	0.448	1.424	0.154
Guests	-0.246	0.114	-2.159	0.031
Zestimate_K	-0.001	0.003	-0.346	0.729
List Price	-0.001	0.004	-0.209	0.835
Rating	0.695	0.173	4.019	0
Rev_AbB	0.002	0.001	2.455	0.014
Loc_1	-0.035	0.494	-0.07	0.944
Loc_2	0.984	0.527	1.869	0.062
Loc_3	0.962	0.578	1.665	0.096
Loc_4	1.016	0.522	1.946	0.052
Loc_5	0.889	0.535	1.661	0.097
Loc_6 (base Case)