Determinants of Guest Experience in Airbnb: A Topic Modeling Approach Using LDA

This study inductively analyzes the topics of interest that drive customer experience and satisfaction within the sharing economy of the accommodation sector. Using a dataset of 1,086,800 Airbnb reviews across New York City, the text is preprocessed and latent Dirichlet allocation is utilized in order to extract 43 topics of interest from the user-generated content. The topics fall into one of several categories, including the general evaluation of guests, centralized or decentralized location attributes of the accommodation, tangible and intangible characteristics of the listed units, management of the listing or unit, and service quality of the host. The deeper complex relationships between topics are explored in detail using hierarchical Ward Clustering.