Online reviews can make or break a business, and for Airbnb hosts, a bad review doesn’t just influence future guests—it can also change how hosts present their properties.
A new study from The University of Manchester, working with researchers at the University of Oxford and the University of Alberta, shows that negative reviews often push Airbnb hosts to re-categorize their listings, sometimes in surprising ways.
The research analyzed more than 80,000 Airbnb hosts across major U.S. cities.
It found that when guests left poor reviews, hosts were far more likely to switch their property from one category to another—for example, relabeling a “loft” as an “apartment,” or a “tiny house” as a “cottage.”
These changes weren’t usually part of an ongoing marketing strategy. Instead, hosts typically made the switch only after something went wrong.
“Negative reviews are powerful—they don’t just influence potential guests, but they also make hosts question whether they’ve chosen the right category for their property,” explained Dr. Karl Taeuscher of Alliance Manchester Business School, lead author of the study.
“If customers say a listing isn’t what they expected, hosts often switch categories in the hope of avoiding more complaints.”
The effect was strongest in categories where expectations vary widely. Take the term “villa” or “loft”—different guests might picture very different things when they see those labels.
In these more ambiguous categories, hosts were particularly likely to reposition their properties after receiving negative feedback.
On the other hand, listings with more straightforward categories—such as “houseboat” or “tent”—tended to remain stable, since customer expectations in those cases are much clearer.
When hosts did decide to make a change, they rarely jumped to something entirely different. Instead, they tended to choose categories that were close to their original one, usually opting for a broader or less restrictive label that could better accommodate what the property actually offered.
The study highlights an important reality: most Airbnb hosts are individuals or small businesses who don’t have the time or resources to constantly refine their marketing strategies.
Instead, they tend to respond reactively, adjusting their positioning only when problems arise.
The findings also apply beyond Airbnb. Many online platforms—from Amazon to Etsy—rely heavily on categories to guide customers.
When sellers miscategorize products, it can create a mismatch between what buyers expect and what they receive. This research suggests that while getting the category right the first time is ideal, negative feedback plays a valuable role in alerting sellers when they’ve made the wrong choice.
“Categories play a central role in how consumers form expectations about products and services,” said Dr. Taeuscher.
“Choosing the right one is an essential part of any positioning strategy. When businesses get it wrong, it hurts the customer experience—but negative feedback helps them recognize the mismatch and correct it.”
Source: University of Manchester.
