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The Effect of Dynamic Pricing Strategy on Sales Performance through the Airbnb Platform: Evidence from Private Villas in Canggu, Bali

Year: 2025

Type: article

Abstract: This study investigates the impact of dynamic pricing strategy on sales performance in private villas listed on the Airbnb platform, focusing on the Canggu area of Bali. Market conditions were examined both as antecedent and moderating variables. Data were drawn from a population of 1,681 private villas in Canggu, with a sample of 323 villas selected using Slovin’s formula (e = 5%). Secondary data were obtained from Airbtics and AirDNA, leading platforms that provide analytics for Airbnb listings. The research applied Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate relationships among variables. Key performance indicators included Average Daily Rate (ADR), Revenue per Available Room (RevPAR), occupancy rate, and total revenue. The findings reveal that dynamic pricing strategy significantly improves sales performance. Market conditions significantly affect sales performance and strengthen the effect of dynamic pricing as a moderator. However, market conditions do not have a significant direct effect on the adoption of dynamic pricing. These results highlight the adaptive nature of pricing strategies to market dynamics and suggest that villa managers should design responsive and context-based pricing policies to maximize revenue.

Source: Formosa Journal of Multidisciplinary Research

DOI: 10.55927/fjmr.v4i9.506

Authors: I Gusti Ayu Eka Widiningsih, Komang Agus Rudi Indra Laksmana, I Gusti Ayu Diah Werdhi Srikandi Wedasteraputri Suyasa

Institution: Universitas Mahendradatta

Language: English

Topic: Sharing Economy and Platforms

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Sustainable cities and communities

Open Access status: diamond

OpenAlex ID: W4415178086

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