DESCRIPTIVE

STATISTICS AND
DATA
VISUALIZATION

By:

Manohar Sivvala-2327435

Subject: Statistics for Business

CIA 1 Project

Class: 1 MBA- Section E

Prof Name: Dr. Ramanatha H R

Dataset Gathered: New York City Airbnb 2023

Description of Dataset

Airbnb, Inc. is a San Francisco-based American corporation that operates an online

marketplace for short and long-term homestays and experiences.

This dataset describes the listing activity and metrics to be measured for the listings in New
York City for the year 2023. It helps us understand the trend of listing customers are going in
New York City. For the first half of 2023, around a million customers have stayed in Airbnb
listings. It has been reduced to 996 records for better understanding. The customers stay in
different listings listed in Airbnb at an affordable price.

It also shows us as to how the customers are giving good reviews based on the listings which
has significantly impacted the HORECA (Hotels, Restaurant and Catering) industry in USA.

Reason for choosing dataset

Based on recent incident from Forbes, Airbnb launched a lawsuit against New York City over
an amendment that it calls a "de facto ban" on short-term rentals, threatening $85 million in
annual earnings generated by the home-sharing platform on June 1st.

According to New York City Local law 18, it compels city residents who intend to rent out a
room or apartment to first register with the Mayor's Office of Special Enforcement (OSE) and
testify that they will follow the rules. Therefore, to help us analyse the impact of the NYC
law on short-term rentings, this dataset has been gathered to allows us whether that customers
are moving towards long-term renting and also whether it has a significant impact on Airbnb
revenue

List of Variables

Customer_ID: Airbnb's unique identifier for the customer (Nominal)

Customer_Name: Name of the host. Usually just the first name (Nominal)

Listing_Name: Name of the listing registered on Airbnb website (Nominal)

Neighbourhood: The neighbourhood group is geocoded using the latitude and longitude
against neighborhoods as defined by open or public digital shapefiles (Nominal)

Room_type: All homes are ranked into the following five room types based on space area-
Entire home/apt, Private room, Hotel room and Shared room (Ordinal)

Price: The price per night in the particular listing (Ratio)

Nights_Stayed: Minimum nights stayed by customer in a particular listing in a year (Interval)

Number_of_guest: To find out how many guest along with the customer stayed together
(Ratio)

Number_of_reviews: How many reviews have been given by the past customers staying in
the particular listing (Ratio)

Relationship between variables

 Neighbourhood and Listing Name: The listing name and area have a relationship in
that the listing name frequently contains the name of the neighbourhood or
surrounding landmarks to give potential visitors a sense of the property's location.
This allows travellers to quickly determine whether a listing is in their desired area
and fits their trip plans.
 Neighbourhood and Room Type: The difference between room type and
neighborhood lies in the fact the room type is unique to each listing, but the
neighborhood is a feature that puts numerous listings together depending on their
geographical closeness. Different room types can be offered by hosts in the exact
same neighborhood, and the room type may not always correspond to the
neighborhood.
 Neighbourhood and Price: The relationship between neighbourhood and price is
significant as listing costs are influenced by a variety of criteria such as proximity to
prominent attractions, safety, proximity to public transport, and local amenities.
Because of a rise in demand from travelers wanting an enjoyable and simple stay,
desirable communities with outstanding reviews are inclined to charge higher prices.
In contrast, less desirable or isolated neighborhoods frequently have lower pricing.
 Room Type and Nights Stayed: The link between room type and number of nights
stayed is going to exhibit a variety of patterns. Different sorts of rooms, such as
complete homes/apartments, private rooms, and shared rooms, attract different types
of guests and travelers. Families or groups seeking solitude and facilities may select
entire homes/apartments for longer visits, which leads to higher average nights stayed.
Private rooms may entice solitary tourists or couples to stay for shorter periods of
time, reducing their average duration. Because of their low cost, shared rooms may
have shorter stays and appeal to economical or lone tourists.
 Number of reviews and Neighbourhood: The association between neighborhood and
number of reviews might provide useful information about the popularity and guest
contentment of various locations. In a beneficial feedback loop, desirable
communities generally create more positive ratings, drawing more guests. Less
desirable or isolated communities, on the other hand, may earn fewer ratings due to
reduced demand. Hosts in prominent areas gain from increased visibility, higher
occupancy rates, as well as the possibility of higher rental pricing.
 Room Type and Neighbourhood: comprehending the link between neighborhood and
room type is critical for comprehending the various accommodation alternatives
accessible in various places. A higher proportion of full homes/apartments appropriate
for families or parties wanting a private comfortable stay may be found in areas with
more affluent or touristy neighborhoods. Urban or densely inhabited districts, on the
opposite hand, may provide more private or shared rooms that can accommodate
solitary travelers or economical guests.
 Number of reviews and Night stayed: The link between number of reviews and
nights stayed can provide useful insights on guest preferences and the effect of room
type on the experience of guests. In general, complete homes or apartments earn more
positive feedback than private rooms. This is most likely due to the fact that
customers who book complete lodgings enjoy greater space, privacy, and facilities,
resulting in a more pleasant and thorough experience, which encourages them to
submit more evaluations. When compared to individual rooms or complete homes,
shared rooms, such as dorm-style or shared quarters within a larger property, may
garner less evaluations. Guests residing in shared rooms may have distinct
expectations, and their likelihood of submitting evaluations may be influenced by the
communal aspect of the lodging.
Visualizations
1. Locations and Number of Listings (Using Pivot Table)
Data Input
Count of
Neighbourhood Neighbourhood
Bronx 13
Brooklyn 458
Manhattan 444
Queens 72
Staten Island 9

Visualization

Location of listings of NYC Neighbourhood

500
458 444
450
400
350
No of Listings

300
250
200
150
100 72
50 13 9
0
Bronx Brooklyn Manhattan Queens Staten Island
Neighbourhood

Business Insights:

 Airbnb is witnessing a huge number of listings being registered in their website from
Brooklyn and Manhattan than any other neighbourhood which means that there is
more demand and popularity in these regions for short-term or long-term renting good
profit margin of around $2,000 per week after paying commission and expenses to
Airbnb respectively
 There are less listing present in Bronx and States Island which means that the
standards of living in these regions which are located in the outskirts of New York
neighbourhood, tells us that there aren’t many listings or rooms available in these
regions either due to lack of demand from the customers or the area has been used as
manufacturing area for factories
 Queens is receiving a moderate amount listing in Airbnb website because due to law
which says that short-term renting which is quite common in Queens is being
considered illegal, which means that the moderate number are representing room
suitable for long-term renting.
 With immense investment in Brooklyn and Manhattan (Facebook has leased a
730,000-square-foot lease in midtown Manhattan. Amazon, for its part, paid $1.15
billion in March purchasing the former Lord & Taylor Fifth Avenue property, with
intentions to create 2,000 jobs there) in the upcoming years ahead, it will give an
opportunity for Airbnb to grab it and gain more listings in their website which will
help increase the revenue and profits for Airbnb in the future.

2. Proportion of room types present in dataset (Using Pivot table)

Data Input
Count of
Row Labels Room_Type
Entire
home/apt 608
Hotel room 4
Private room 377
Shared room 7
Grand Total 996

Visualizations

Room Types in Airbnb NYC Listings

0.70%

37.85% Entire home/apt

Hotel room
Private room
Shared room
61.04%

0.40%
 Business Insights
 There are more listings which rent out entire home/apt and private rooms
which accounts to approx. 98% of the listings present in Airbnb due the
stringent laws which didn’t encourage the sale of rooms which has a small
area especially shared room and Airbnb provide incentives or features that
encourage hosts to list their full home/apartment, making it more appealing for
hosts to market their entire properties. Certain advertising tools or visibility
increases, for example, may be offered just for whole property listings.
 However, we see that hardly any see any listing for hotel room (4) and for
shared room (1), which tells those private accommodations, such as complete
homes or private rooms, may be preferred over communal areas or hotel
rooms. This could be due to worries about privacy or personal preferences.
However, the main focus of Airbnb is to also shared room as well. But we can
see that not many hosts have kept their listings (both hotel room and shared
rooms) in the website. This is a main concern for Airbnb which have to be
taken care.
 Due to competitive pricing strategy implemented by Airbnb’s competitors, we
can see that around 38% of the listings are private rooms, because of which
many hosts are shifting to competitors websites , which is seriously impacting
their revenue stream from this room type. Many tourist love to have a separate
private room for themselves or for their families so that a sense of privacy is
being followed. This shows that the marketing activities and financial
incentives for the particular room type is not enough to increase the number of
listings in Airbnb website.

3. Average Cost per night in NYC Neighbourhood (Using Pivot Table)

Data Input
Average of
Row Labels Price ($)
Bronx 77.38461538
Brooklyn 165.6266376
Manhattan 209.6441441
Queens 116.1388889
Staten
Island 119.8888889
 Data Visualization

Average Cost per night in Airbnb NYC

Neighbourhood $120

$116

$77

$166

$210

Bronx Brooklyn Manhattan Queens Staten Island

Business Insights:
 Manhattan and Brooklyn ($210 and $166 respectively) have the highest rent
cost per night irrespective because of the Airbnb growing influence in these
regions as majority of the company's rentals are centered in tourist regions and
gentrifying districts in Manhattan and Brooklyn. This makes the demand of
these room high, which means that the tourists will need to have a higher
budget before making a visit or having a vacation in Brooklyn and Manhattan.
 However, Staten Island and Queens ($120 and $ 116 respectively) are seeing a
moderately high cost of rent per night in Airbnb because Staten Island and
Queens both include activities and services that may appeal to tourists and
travelers. While they may not have as much tourist traffic as Manhattan or
Brooklyn, their proximity to prominent New York City landmarks and cultural
institutions makes them enticing to travelers. Staten Island and Queens are
also well-known for their beauty, safety, and local attractions. These features
may make them appealing to visitors seeking a more casual and authentic New
York experience. This means that Airbnb can attract middle-class people who
want to spend their journey away from the major metropolis to these
neighborhoods.
 Bronx has the cheapest rent of all NYC neighbourhood even though it
constitutes as one of borough in New York City because although the Bronx
 boasts a number of attractions, like the Bronx Zoo, Yankee Stadium, and the
New York Botanical Garden, it does not have the same concentration of
popular tourist spots as Manhattan or Brooklyn. Because many visitors do not
stay in the Bronx, but rather visit and end their journey during the day,
reduced tourist traffic may translate into lower demand and, as a result, more
inexpensive pricing for Airbnb rentals. It is regarded as an outskirt location of
New York by Airbnb.

4. Average No of Nights stayed in Respective NYC Neighbourhood (Using Pivot

Table)

Data Input
Average of
Neighbourhood Nights_Stayed
Bronx 17
Brooklyn 23.08952
Manhattan 25.49324
Queens 25.66667
Staten Island 21.77778

Data Visualization

Average Nights Stayed in NYC Neigh-

bourhood

Staten Island 22

26
Neighbourhood

Queens

Manhattan 25

Brooklyn 23

Bronx 17

0 5 10 15 20 25 30

Average of Nights_Stayed

Business Insights
 Customers are spending on an average 20 nights per year staying in four out of
five boroughs of NYC (Queens, Manhattan, Brooklyn and Staten Island)
because customers are undoubtedly drawn to NYC's most popular boroughs,
 which also provide a diverse range of restaurants, stores, and cultural
activities, making them popular tourist and business trip destinations. As a
result, Airbnb should be prepared to give discounts for longer stays. Due to
local NYC limitations placed on short-term rent, this could help to attract
clients searching for a cheaper option for long-term rent.
 However, from Bronx perspective, we can see that less than 20 nights are
being stayed there which means that Airbnb hosts within Bronx should
concentrate on marketing their accommodations to guests searching for a low-
cost option. This might include focusing on families, students, or people
relocating to New York City. They should also be willing to give discounts on
their listings. Customers who are seeking a cheaper means of arranging their
stay may benefit from this.
 In order for Airbnb to increase the vacation rental industry to more than 25%
(currently their market share is 20%), they need to increase the number of
nights per year stayed by customers in listings based on respective
neighbourhood. On an average according to Searchlogistics.com and
Hostyapp.com, the number of nights per year minimum standards should be
(393000*4.4)/40000 = 43.23 nights per year. However, the number of nights
stayed in these neighbourhood is far way from the standards. Therefore,
Airbnb should change their pricing strategy for their hosts and to their
customers so that many hosts will displaying on the Airbnb website and many
customers will avail the same.

5. Average number of guests stayed based on Room Type (Using Pivot Table)
Data Input

Row Labels Average of Number_of_Guest

Entire
home/apt 3.61
Hotel room 4
Private room 3.44
Shared room 3.14
 Data Visualization

Business Insights:

 By having at least 3 guests in each room types present in Airbnb database, it shows
the exposure of the company towards the general public as more people will be shown
to them. This is due to the fact that Airbnb's search algorithm favors properties that
are capable of accommodating more guests. This will lead to increase for the host
listing their properties as well for Airbnb for displaying these listing on their website
to the public because they have the potential to earn as much if more number of guest
are being accommodated to their room type of their choice.
 In terms of space area, we can see that hotel room and shared room are having at
leaset 3 guests in their room because hotel rooms and shared rooms may be more
common in prominent tourist destinations or urban regions with few inexpensive
accommodation options. These solutions may be preferred by travelers because of
their ease of access and convenience to attractions.
 Also we can see that the space area is more in entire home/apt followed by private are
having between 3-4 guest in a listings. This will discourage customers to go and book
listings in Airbnb as they prefer to have a huge space to conduct parties and other
function in listings which fall under these two room types in Airbnb. It will signal
 Airbnb to relax some of their restriction towards having a limit on the number of
guests in each listings, in order for them to increase their revenue in the near future.

Descriptive Statistics
1. Price
Price ($)

Mean 180.1064
Standard Error 7.404484
Median 134
Mode 150
Standard
Deviation 233.6816
Sample Variance 54607.07
Kurtosis 214.6834
Skewness 12.07154
Range 5035
Minimum 30
Maximum 5065
Sum 179386
Count 996

Managerial Insights:

 The dataset's mean listing price is roughly $180.1, whereas the median (middle value)
is $134. As the mean is greater than the median, this implies that the price distribution
of Airbnb room in New York City is likely right-skewed.
 The significant gap between the minimum and maximum values ($30 and $5065,
respectively) indicates the presence of outliers. The large price range ($5035) shows
that there may be some outliers in the pricing distribution of rooms that are distorting
the mean and standard deviation.
 The price distribution is substantially skewed to the right, as indicated by the positive
skewness value (12.07154). Similarly, the strong positive kurtosis (214.6834)
indicates that the price distribution has extreme outliers and hefty tails. This means
that Airbnb need to rectify their pricing strategy for room being advertised in New
York as the kurtosis indicates extreme outliers present in the dataset.
 The standard deviation is extremely large, at around $233.7. This implies that prices
deviate greatly from the mean, which may have been attributed to factors such as
 location, unit type, amenities, and demand. This implies that the costs for Airbnb
properties in New York vary greatly.

2. Nights Stayed

Nights Stayed

Mean 24.25602
Standard Error 1.137582
Median 30
Mode 30
Standard
Deviation 35.90148
Sample Variance 1288.916
Kurtosis 51.79001
Skewness 6.390318
Range 369
Minimum 1
Maximum 370
Sum 24159
Count 996

Managerial Insights:

 The average number of nights stayed by guests is about 24.26, with a median (middle
value) of 30. The fact that the median is greater than the mean indicates that the
distribution is biased to the left, with more guests staying for longer periods of time
with the sudden effect of law which prohibit the implementation of short-term stays.
 The wide gap between the minimum and greatest nights stayed (1 and 370,
respectively) indicates the presence of outliers. The large range of nights suggests that
there may be some outliers in the sample altering both the standard deviation and the
mean.
 The positive skewness (6.390318) and extremely high positive kurtosis (51.79001)
values suggest that the distribution is significantly skewed to the left and has a long
tail. The reality that the skewness is significant indicates that there are greater
numbers of guests who stay for a longer amount of time than those who stay for
shorter durations of time.
 This could be due to Airbnb becoming more prevalent for more long-term stays, for
instance for those relocating or looking for a less expensive option to rent an
apartment. A high kurtosis also indicates that there are greater numbers of guests who
remain for short or long lengths of time, and less guests who stay for moderate
durations of time.
 The standard deviation is fairly high, around 35.90. This implies that the duration of
stays varies greatly from the norm, with certain guests staying for just a short amount
of time and others staying for much more prolonged periods of time. This means that
some people are breaking the law despite the fact that Airbnb is compelled to do so.
They may utilize this data to imply that certain people prefer short-term stays.

3. Number of Guest

Number of Guest

Mean 3.544177
Standard Error 0.054403
Median 4
Mode 6
Standard
Deviation 1.716914
Sample Variance 2.947795
Kurtosis -1.27405
Skewness -0.00892
Range 5
Minimum 1
Maximum 6
Sum 3530
Count 996

Managerial Insights:

 The standard deviation is minimal, around 1.72, implying that the number of visitors
per booking does not deviate significantly from the norm. This implies that the vast
majority of reservations have a comparable number of visitors.
 The average number of guests per booking is at 3.54, with a median (middle value) of
4. As demonstrated by the negative skewness value (-0.00892), the data is slightly
 negatively skewed. This implies that more bookings have a greater number of guests,
with the bulk of bookings having approximately four guests. The somewhat negative
skewness shows that there happen to be slightly greater listings with fewer visitors
than with greater numbers of guests.
This is possible because Airbnb is becoming increasingly popular among individual
travelers, like those traveling for business or pleasure. Also, the mere fact that the
coefficient of kurtosis is negative indicates that the number of visitors distribution is
flat than a normal distribution. This indicates that there are greater listings with a
reasonable number of guests and less listings with a small or large number of guests.
 The number of outliers is low, with a range of 5 (from 1 to 6 guests). The data appears
to be evenly distributed, with no outliers that could significantly alter the mean and
standard deviation.
 The dataset's mode, which represents the most frequently observed amount of guests,
is 6. This means that bookings for 6 people may be rather usual. It suggests that many
Airbnb customers use the service for group trips, such as vacations or business visits.

4. Number of reviews

Number of reviews

Mean 84.36245
Standard Error 3.338059
Median 43
Mode 0
Standard
Deviation 105.3474
Sample Variance 11098.07
Kurtosis 4.918337
Skewness 2.063131
Range 646
Minimum 0
Maximum 646
Sum 84025
Count 996

Managerial Insights:
 The average number of reviews for listings is at 84.36, with 43 being the median
(middle value). The positive skewness number (2.063131) indicates that the data is
 positively skewed. Because the skewness is positive, it implies there's are a greater
number of listings having more reviews than listings with less reviews.
This could be due to the fact that guests generally more likely to post evaluations for
listings with whom they believe they had a pleasant encounter. Also, kurtosis is
positive, indicating that the pattern of distribution of the total amount of reviews is
more skewed than a normal distribution. This indicates there's are numerous listings
with very few or very few reviews, and fewer ones with a moderate amount of
reviews.
 The huge range (646) and high standard deviation (105.3474) indicate that certain
listings have an unusually high number of reviews. These properties could be well-
known and well-reviewed.
 A mode of 0 means that there are no reviews on the listings. This could be because of
newly listed homes that haven't yet received ratings or properties with extremely low
demand. It also implies that numerous listings have still to be vetted. This could be
due to the fact that the postings are new, or that the hosts have neglected to ask guests
to write reviews. This would be major concern for Airbnb because its goodwill will be
damaged as they fail to get recommendation from the customer’s side.

Conclusion

The Airbnb New York dataset 2023 has had a big impact on New York City's new rule
regulating the usage of short-term stays. According to the data, Airbnb listings are having an
adverse effect on the region's housing market as well as residents' quality of life.

According to the research, Airbnb postings, for example, are boosting the expense of rent in
New York City neighbourhoods. This is due to the fact that Airbnb hosts are frequently able
to ask for more on their listings than long-term renters. This raises the overall price of
housing for everybody, rendering it more difficult for individuals to live in the city.

According to the research, Airbnb listings are also responsible for the loss of affordable
homes in New York City. This is due to the fact that Airbnb hosts frequently convert short-
term rentals into long-term rentals. This implies fewer long-term rentals are available, making
it harder for people to find inexpensive homes.
Furthermore, the statistics further demonstrates that Airbnb rentals contribute to New York
City's noise and nuisance levels. This is due to the fact that Airbnb guests frequently arrive
and depart at all periods of the day and night. Residents, particularly people who live in
heavily crowded areas, may find this disruptive.

Thus, Airbnb can file therefore right with the given statistics as an evidence to provide to
New York administration, that the impact of short-term rentals is affecting the citizens
livelihood.

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