HOW DOES THE SUPERHOST STATUS AFFECT AIRBNB RENTAL PRICES IN SINGAPORE?

Abstract

Airbnb is an alternative accommodation option specializing in home-sharing that has entered the market in recent years. This study examines the impact of the Superhost status on Airbnb rental prices in Singapore. It contributes to the growing number of literature done on the hospitality sector, in particular, the alternative accommodation segment. The objective of this study is to investigate the prices of Airbnb listings in Singapore, and examine the impact of the Superhost status on the prices. The study postulates that the Superhost status will enable Airbnb hosts to command higher prices on the Airbnb market. One main hedonic regression model is used to determine the impact of the Superhost status. The findings reveal that Superhost status does in fact have a significant relationship to both listing prices and the total cost required for a night on Airbnb. This provides concrete insights into the impact of Airbnb’s unique Superhost badge system, which can be used to provide hosts with a better understanding of how they can price their listings more competitively amidst a currently aggressive hospitality market, as it is important hosts to develop a keen sense of market awareness and understand Airbnb’s unique features such as the Superhost badge system, which will allow them to better improve their listings as well as price their accommodations more competitively.