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Airbnb Market Analysis: Miami vs. Paris

Project Overview

  • This project analyzes Airbnb markets in Miami and Paris using structured listing data and unstructured review text. Log-linear regression and LDA topic modeling are applied to identify key occupancy drivers and extract guest sentiment from reviews. The results reveal meaningful cross-market differences in pricing sensitivity, space preferences, host type effects, and guest feedback, which motivated our tailored, market-specific marketing recommendations.

  • This was completed as a group collaboration with Liz Ji, Bella Liu, and Hamy Vu.

📌 Objectives

  • Identify key drivers of occupancy using regression modeling
  • Extract and analyze guest review themes using NLP and topic modeling
  • Compare demand dynamics across Miami and Paris
  • Translate analytical findings into actionable marketing recommendations

📌 Methodology

1. Regression Analysis (Marketing Mix Modeling)

  • Feature engineering, variable transformation, and multicollinearity checks
  • Log-linear regression on occupancy (last 90 days)
  • Cross-market comparison of coefficients and explanatory power

2. Text & Sentiment Analysis

  • Review preprocessing (tokenization, stopword removal, stemming)
  • Sentiment scoring using dictionary-based NLP methods

3. Topic Modeling (LDA / STM)

  • Topic extraction from guest reviews
  • Identification of topics associated with high vs. low ratings
  • Visualization via word clouds and topic–rating relationships

📌 Key Insights

  • Occupancy is strongly driven by ratings, review sentiment, space, and entire-home listings
  • Price and minimum-night sensitivity differs meaningfully across markets
  • Miami guests value space and privacy more heavily while Paris guests prioritize host warmth, design, and flexible stays
  • Professional hosts underperform in Paris, likely due to misalignment with guest expectations

📌 Tools & Techniques

  • Language: R
  • Modeling: Log-linear regression, interaction terms
  • NLP: Sentiment analysis, LDA / Structural Topic Modeling
  • Packages: sentimentr, syuzhet, tm, stm, wordcloud

About

This project analyzes Airbnb markets in Miami and Paris using structured listing data, log-linear regression, and LDA topic modeling. NLP-based review analysis and cross-market comparisons are used to identify key occupancy drivers and generate market-specific marketing recommendations.

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