Introduction

Established in 2008, the Airbnb is an online platform or rather a marketplace whereby hosts as
well as guests have the opportunity of renting or properties in an effective and prompt manner.
This business concept has literately changed the lives of people as it has transformed the manner
in which individuals travel. Through the Airbnb platform, people can comfortably rent cheap
and well-furnished accommodation for some days. These accommodation places are often
conveniently situated and hosted by an individual. From humble beginnings, the company has
managed to rise up the ladder and even recording more than ten million nights as far as booking
is concerned. By 2015, the company had nearly twenty-five million users.
Internal Environment
Looking at the case study, it is quite evident that the Airbnbs financial growth is significantly
augmenting over the years. In essence, the companys operating revenue has grown from $93.3
million in 2014 to nearly $139 million in 2015, which represents an increase of nearly 48%
increase. Much of the revenue comes from the multi-unit operators who often rent two units on
Airbnb. Looking at the latest recording of the companys growth, the revenue derived from the
multi-unit operators from $ 13.2 million in 2014 to nearly 26.7 million in 2015, which represents
over 98% increase. Besides, the number of these multi-unit operators increased from 2,215 in
November 2014 to 3,690 in October 2015. On the other hand, the mega-operators recorded the
largest increase between 2014 and 2015. In essence, the mega-operators grew from 1,398 in
2014 to nearly 2018 in 2015; this represents a 67% increase. The mega-operators are often those
who often rent more than three units. A close analysis of the case study indicates that the mega
operator managed to generate more than $20 million worth of revenue in 2014 for nearly $30
million in 2015; this indicates a 49% increase.