Airbnb Super-Host Prediction
Forecasted Airbnb 'Super host' status in Chicago with an 84% accuracy using Logistic Regression and assessed potential returns on investment employing the Herfindahl Index for strategic investment insights.
Project Objective:
Utilized Airbnb's datasets to address real-time challenges within the Airbnb ecosystem in Chicago through robust modeling techniques.
Key Highlights:
Predictive Model for Superhost Status:
Developed a Logistic Regression model to forecast Airbnb 'Superhost' status with 84% accuracy.
Identified key factors influencing Superhost recognition, aiding hosts in understanding and achieving Superhost status.
Strategic Investment Insights:
Employed the Herfindahl Index to assess market concentration and competitiveness across various neighborhoods in Chicago.
Provided strategic recommendations for potential investors, focusing on optimizing return on investment (ROI) by identifying high-potential areas for new Airbnb listings.
Exploratory Data Analysis (EDA):
Analyzed trends and patterns in the raw data to differentiate between hosts and Superhosts.
Key findings showed that Superhosts generally have higher ratings, response averages, and booked days compared to regular hosts.
Data Preprocessing:
Enhanced data quality by removing irrelevant features and handling missing values using Gradient Boosting for imputation.
Addressed multicollinearity to improve model performance and ensure robust predictions.
Investment Decision Support:
Analyzed property prices and revenue to calculate potential returns on investment.
Suggested neighborhoods with high ROI potential, considering the competitive landscape and revenue generation capabilities.
Occupancy Rate Prediction:
Forecasted occupancy rates using a Random Forest model, achieving a MAPE of 3.80% on the test data.
Insights revealed an 8% increase in occupancy rate for properties predicted to achieve Superhost status.
Business Insights & Recommendations:
Promotion of Superhost Program: Continue promoting the Superhost certification to maintain high-quality standards and enhance guest satisfaction.
Support for New Hosts: Provide resources and incentives for new hosts to become Superhosts, particularly in areas with fewer Superhosts.
Neighborhood Marketing: Highlight neighborhoods with high concentrations of Superhosts in marketing campaigns.
Comprehensive Listings: Educate hosts on the importance of thorough and attractive property listings, emphasizing the impact of having 10-20 high-quality photos.
Strategic Location Focus: Leverage the reputation of high-performing neighborhoods like Lakeview and suggest competitive strategies for other areas.
Property Type Optimization: Recommend investing in studio apartments, as they have a higher likelihood of achieving Superhost status.