How to make money with credit information? Information processing on online accommodation-sharing platforms

Abstract

Abstract Online accommodation-sharing has experienced rapid growth and greatly attracted the interest of current scholars. This study develops a theoretical model to explore the factors determining future bookings based on the novel perspective of information processing. We examine the effects of basic room and host information and the contingent role of credit information. The research model is tested by using a dataset from xiaozhu. com, one of the largest accommodation-sharing platforms in China. The results show that basic room information plays a major role in affecting future bookings, with room price generating a negative effect and consumer reviews generating a positive effect. Similarly, host information (reply rate and acceptance rate) is also significantly related to future bookings. Moreover, credit information weakens the negative effect of the room price and strengthens the effects of consumer reviews and the host acceptance rate. This study contributes to the literature on online accommodation-sharing, consumer booking behavior, and information processing theory and provides practical implications.