The impact of review sentiments on occupancy: Evidence for signalling theory from peer-to-peer accommodation

SAHADEV, Sunil, SEILER, Andreas and SCARF, Phil (2023). The impact of review sentiments on occupancy: Evidence for signalling theory from peer-to-peer accommodation. Journal of Vacation Marketing.

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Abstract

Using data from 16,144 peer-to-peer properties in London, we study the impact of the two components of user-generated content – rating and sentiment – on occupancy rate. Our methodology is innovative because, firstly, we control for price variation when estimating these review-occupancy effects and secondly, we estimate interaction and curvilinear effects. We find that sentiment and rating have significant positive effects on occupancy rate; there is some evidence that sentiment and rating interact, one reinforcing the other; for a typical property among those analysed, an outstanding review increases occupancy by a fifth in relative terms. Thus, we interpret these associations as evidence that rating and sentiment signal value, and we estimate the strength of the signal in the peer-to-peer accommodation sector.

Item Type:	Article
Uncontrolled Keywords:	Accommodation; peer-to-peer; occupancy rate; rating; sentiment; signalling theory; 1505 Marketing; 1506 Tourism; 3506 Marketing; 3508 Tourism
Identification Number:	https://doi.org/10.1177/13567667231201406
SWORD Depositor:	Symplectic Elements
Depositing User:	Symplectic Elements
Date Deposited:	28 Nov 2023 10:38
Last Modified:	04 Dec 2023 17:14
URI:	https://shura.shu.ac.uk/id/eprint/32744

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