From Hospitality to Hostility: The Impact of Polarity Difference in Managerial Responses on Subsequent Guest Satisfaction

Previous research has identified the effects of location bias in online product marketing and online communication. This study delves into these effects by analyzing sentiment polarity differences in managerial responses. Specifically, it investigates how hosts' location bias towards local versus non-local guests affects guest satisfaction after booking within the context of P2P accommodation platforms. We collect actual host response data from Airbnb and employ a panel regression model with fixed effects to address our research questions. The empirical findings reveal that if hosts have more positive attitudes towards local guests compared to non-local guests, such location discrimination results in a reduction in ratings posted by subsequent guests. Furthermore, the depth of hosts' descriptions and the number of listings moderate the impact of the polarity variance in managerial responses based on hosts' location bias on guest satisfaction. These results carry important managerial implications, suggesting that hosts should actively address and minimize their location bias to enhance their reputation and marketing efforts.