Analysis of Short-term Rental Market in Prague
|Author:||Bc. Karolína Štollová|
|Year:||2020 - summer|
|Leaders:|| Mgr. Barbara Pertold-Gebicka M.A., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||This paper investigates determinants of daily rate of Airbnb listings in Prague, Czech
Republic. Sample of 13 500 properties was examined to identify a relationship between
property attributes and rental price using the ordinary least squares estimation method.
The study provides an empirical evidence that twenty-five independent variables
describing space, reputational, location, commerciality attributes or management
policies significantly impact the average daily rate. According to the analysis the most
relevant rental price determinants are property location, its size in terms of number of
bedrooms, bathrooms and capacity. Author demonstrated in two robustness checks that
the results are stable. The study is conducive to better understanding of the Prague
Airbnb market. Insights from the analysis could help hosts in developing a suitable
pricing strategy as well as Airbnb or similar platforms in designing a pricing tool to
increase hosts efficiency.