Airbnb, hotels, and saturation of the food industry: A multi-scale GWR approach

Airbnb, hotels, and saturation of the food industry: A multi-scale GWR approach

Zahratu Shabrina; Boyana Buyuklieva; Matthew Ng Kok Ming
arXiv 2019
21
ming2019airbnb

Abstract

This paper evaluates the relationship between the food industry and the local variations of temporary accommodation (TAs, including hotels and short-term rentals). The aim is to capture the variance of the local statistic and pinpoint areas where food and beverages (F&B) presence is highly related to TAs in London. We explain the phenomena using OLS and compare the result with the local model - Geographically Weighted Regression (GWR) and multi-scale GWR (Fotheringham et al., 2017) allowing the use of different optimal bandwidths instead of assuming that relationship varies at the same spatial scale. The comparison is presented and the result shows that the GWR model shows significant improvement over Ordinary Least Square (OLS), increasing the R-squared from 0.28 to 0.75. MGWR further improves the model estimate, increasing the R-squared to 0.77, indicating the relationship happens in different spatial scales. Lastly, as an estimate for F&B, hotels appear to perform better in a high concentration of commercial and transport links functions, whilst Airbnb seems to perform better in highly residential areas proximate to the mainstream tourist attractions. Overall, this paper describes the use of the MGWR method in cases where localities is an important aspect of the spatial analysis process.

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