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

Sahadev, Sunil, Seiler, Andreas and Scarf, Philip 2023. The impact of review sentiments on occupancy: Evidence for signalling theory from peer-to-peer accommodation. Journal of Vacation Marketing 10.1177/13567667231201406

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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
Date Type:	Published Online
Status:	In Press
Schools:	Business (Including Economics)
Publisher:	SAGE Publications
ISSN:	1356-7667
Date of First Compliant Deposit:	12 March 2024
Last Modified:	12 Mar 2024 15:32
URI:	https://orca.cardiff.ac.uk/id/eprint/166787

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