Racial discrimination in online booking: how profile pictures affect host behaviors and platform actions

Research has shown that racial discrimination is detrimental to the ethnic minorities in accommodation and hospitality sectors. However, whether racial discrimination happens during the stage of online booking before check-in remains unclear. Leveraging a natural experiment of the anti-discrimination policy implemented on Airbnb and face recognition techniques to identify the racial information of hosts and guests, this study reveals that racism from hosts against ethnic guests indeed exists during the stage of online booking. The results indicate that the monthly proportion of ethnic guests increases 5% after the launch of anti-discrimination policy. We also find that discrimination exists between ethnic hosts and ethnic guests, which was not documented in previous studies. Moreover, the anti-discrimination policy in relieving racism plays a bigger role among hosts with severe racial discrimination. These findings are critical for online booking platforms to set anti-discrimination policies.