The Influence of Linguistic Styles in Property Titles on Room Rates: A Hedonic Pricing Model

Abstract

Consumers are drawn to the inherent quality of a product or service and how it is portrayed and described. This study investigated the impact of language used in property titles on pricing strategies and financial performance in peer-to-peer (P2P) accommodations by adopting the Language Expectancy Theory (LET) as a theoretical framework. The findings of this study demonstrate the significance of linguistic styles in property titles for determining P2P room rates, rental volume, and overall performance. Property titles that exhibit formal, logical, and hierarchical thinking are perceived as more sincere, personalized, and informative, resulting in higher rates, more significant rental volumes, and improved overall performance. On the contrary, properties with titles that convey expertise, and confidence, or adopt a positive and upbeat style tend to put lower room rates and yield lower performance yet generate higher volumes. This study expands the application of LET to P2P communication between an Airbnb host and a potential guest.