PRICE FORECAST AirBnB Price Prediction – This study is an exploration into key factors that determine the pricing of an AIRBNB which allows home-owners and renters ('hosts') to put their properties ('listings') online, so that guests can pay to stay in them; whether they are entire apartments owned by the host or part of their own living space.
Hosts are expected to set their own prices for their listings or they can pay a fee to use a service () such as "Be-yond Pricing" and others like "Smart Pricing" which will change pricing according to Supply and Demand and other typical factors such as holidays, special events and the like. Although Airbnb and other sites provide some general guidance, there are currently no free services which help hosts price their properties. Airbnb Hosts typi-cally pay between 3 and 14% of their earnings to use the Airbnb platform. *Source here. These 3rd party algorithms will change each daily price around that base price on each day depending on day of the week, the season, how far away the date is, and other misc. factors. In order to truly maximize revenues and get pricing strat-egy correct, it is important to understand the factors involved.
The Notebooks
Methodology
- Preprocessing and Cleaning using Python
- Feature Extraction and Data Visualizations
- NLP WordCloud to analyze the most effective words to attract guests
- Analysis of various supervised learning methods such as XG Boost and the Spatial Hedonic Price Model (HPM)