TS311 INDIVIDUAL

ASSIGNMENT
University of the South Pacific
Introduction
An Airbnb is any listings that contains a variety of property on the Airbnb website (e.g.
residence, apartment, villa, tent, bed and breakfast, etc.) spanning three types of listing (full
home, private room, and shared room).[ CITATION Sth19 \l 3081 ]. “It has more than 7 million
listings in 191 countries and regions worldwide today (Airbnb, 2020). The sharing economy
has experienced significant progress in the last decade over different divisions , specifically
in accommodation (Airbnb), and the lodging or accommodation industry such as Airbnb has
been proposed as a more ecologically friendly substitute to traditional types of
accommodation or lodging services ”[ CITATION Che20 \l 3081 ]"In recent years , the growth of
the collaborative tourism economy is primarily due to the exposure of companies such as
Airbnb 's online social platforms that allow customers to function as a network, to help one
another and profit from the Sustainable Development Alliance"[ CITATION Tre20 \l 3081 ].

[ CITATION Sth19 \l 3081 ] Cited Sigala as "From a supply perspective , Airbnb allows
sequestered individuals or else renters of homes , flats, and spare rooms to give their
properties on the demand to tourists for short-term rentals," Airbnb serves the needs of
travellers, such as lower-priced lodging and ability to connect with the local community.”.
According to [ CITATION Mid17 \l 3081 ] “Sustainable tourism seeks to mitigate all detrimental
effects of this industry while enhancing all constructive impacts and increasing sustainability.
Tourism businesses can help decrease their environmental impact while making a larger
commitment to their society. The ability of Airbnb to mitigate environmental impacts is an
attraction of choosing Airbnb.

According to [ CITATION Ric19 \l 3081 ] “The abundance of central neighbourhoods of Airbnb

properties has an influence on the identity of these communities. [ CITATION Ric19 \l 3081 ]
cites (Gonzalez and Waley, 2013) as “At the cost of the local community, the requirement for
further homegrown, green, moral and genuine experiences by affluent tourists is reforming
places and "this leads to the problem of redevelopment, described as" a process of socio-
spatial transition whereby communities are changed according to the needs of affluent users,
residents and visitors alike” [ CITATION Ric19 \l 3081 ]. This incremental urbanization has
detrimental consequences and alienates locals.

[ CITATION Mid17 \l 3081 ] In their research cite (Weaver, 2006) as saying “Although many
owners of tourist accommodation are focused on improving the sustainability of their
businesses. Several problems with the implementation of such policies are also present. Such
problems include total absence of understanding of adequate ways to successfully incorporate
sustainability in tourism, insufficient commitment to adhere with sustainable initiatives (i.e.
low cost processes, trivial initiatives like recycling only), failure in concentrating on the other
aspects of the triple bottom line as the financial aspect weighs too heavily, and failure of
workers to comply along with sustainability practices”.

A rapid expansion of short-term rentals can change the environment of a city. However, by
promoting places that need tourists the most and reducing congestion in tourist hotspots, it
also helps diversify tourism. [ CITATION Pal17 \l 3081 ] cite (Novel,2014) as “In line with living
and business sustainability, the shared economy is elevated because it often increases the life
cycle of products by reusable markets, thus potentially decreasing the need for the production
of goods and hence for the use of virgin commodities. Although, it has also been portrait as a
concept promoting excessive expenditure and offers people who have not been able to afford
them before, providing access to consuming”[ CITATION Pal17 \l 3081 ].

“Airbnb and Uber have been judged by its vanguards as a market that generates unregulated
trading and unfair advantage in terms of business competitiveness, allows tax frauds and
avoidance and passes risk to its customers. These numerous factors of the shared economy
indicate that this is a disputed trend.”[ CITATION Pal17 \l 3081 ].

[ CITATION Pal17 \l 3081 ] cites Botsman and Rodgers, 2011, McLaren and Agyeman, 2015) as
“Sharing markets advocates claim that sharing economy is a more efficient way to live and
operating a business as less items are required to be created to provide users with cost
effective service. The shared economy has been predicted to increase the lifetime of
numerous goods by establishing second-hand businesses and growing the intensity of use of
resources from traditional methods.'”[ CITATION Pal17 \l 3081 ] . Similarly, [ CITATION Pal17 \l
3081 ] cites Sundararajan, 2014) as “there is a presumption that in the sharing economy,
apartments, flats and other assets owned by individuals will be available, thus reducing their
downtime. This will allow physical capital, such as real estate, to be used more efficiently
and, therefore, less money will be required to develop new properties.”.

As cited in [ CITATION Pal17 \l 3081 ] “However, there are fears that instead of being a
replacement for the development of new products, the shared economy increases demand and
gives customers who have not been able to afford it before with access to items.”. Botsman
and Rodgers, 2011 as cited in [ CITATION Pal17 \l 3081 ] “Indeed, in the accommodation
industry, by sharing agreements, individuals who have not previously had the opportunity to
experience tourism accommodation can now do so. Lower rates and even free shared
accommodation can result in increased demand for accommodation and travel, so-called
direct or first-level rebound effects.”[ CITATION Pal17 \l 3081 ]. A research by Tussyadiah and
Pesonen (2015)  as cited in [ CITATION Pal17 \l 3081 ] demonstrates that the use of peer-to -
peer facilities increases the choice of destinations, increases the duration of travel and the
duration of stay at the destination.

The increase in the demand also results in over consumption, thus increasing environmental
impacts from higher emissions of greenhouse gases (GHGs) or the use of energy. This effects
can be reduced if more emphasis is given to sharing rooms and accommodation rather than
more conventional hotels.”[ CITATION Pal17 \l 3081 ]. A study by Chenoweth (2009) as cited in
[ CITATION Pal17 \l 3081 ] concluded that there is less impact on the environment when
choosing sharing accommodation to hotels”.
GUEST PERSPECTIVE
“For example, Airbnb sharing economy users are subjected to risks other than monetary loss
and unreliable strangers; visitors may carry the risk of unfavourable hosts or even personal
safety. Although majority of the circumstances, owner of the property leases the
accommodation to strangers via hosts and the quality of the accommodation service depends
heavily on their hospitality.”[ CITATION Sth19 \l 3081 ]. As a result, there will be several
unexpected accidents, as guests will not assess the reliability of each other in advance. Such
negative encounters will definitely occur, contributing to scepticism and also preventing
future tourists from using Airbnb as an alternative to traditional types of housing.”[ CITATION
Sth19 \l 3081 ]. (Tussyadiah & Pesonen, 2018) as cited in [ CITATION Sth19 \l 3081 ] “Recent
studies have demonstrated scepticism or distrust as one of the key obstacles to the use of
Airbnb by customers.

“Since Airbnb is a third-party policy that provides vendors and users with online
accommodation services, risk is a very important consideration. Furthermore, Airbnb users
can only get information on various risks through information only because they will not
encounter experience until arriving at their selected assets.”[ CITATION Sth19 \l 3081 ] . Hosts'
unpleasant behaviour was also one of the concerns of guests according to reviews posted on
Airbnb, 22 out of 216 reviews emphasised on Airbnb hosts unfavourable attitude which led to
distrust in the hosts.

HOST PERSPECTIVE
From a host’s perspective Financial risk is one factor: “The risk of losing large sum of
money through fraudulent online transactions or adverse changes in the currently market. A
fine will be imposed on the hosts if they are oblivious to the laws/policies of the towns where
they are based. Owners asked business regarding damages sustained as a result of the stay
and insurance providers take an ambiguous view. Airbnb, renowned for its short-term
accommodation site, is also providing events and activities. However, potential risks need to
be fully scrutinized and contemplated”[ CITATION Mal18 \l 3081 ]

“Functional risk, Service risk: The risk of invading an individual’s privacy. For example, if
hosts have installed surveillance equipment for safety purposes, it will be their responsibility
to ensure that visitors are aware of it by making it very clear in the explanation of the
accommodation. Anything other than that, although the host might have to comply with fines,
the guest may have the option to rescind the reservation and request a refund. Legitimacy of
the accommodation is required from the hosts in the sense of confidence and reliability. Hosts
shall ensure compliance with all housing requirements (e.g., referring to electricity, heat,
running water and cleanliness)”[ CITATION Mal18 \l 3081 ].

“Physical risk, Safety and security risk: Airbnb providers are additionally at risk of liability
due to the fact that insurance plans for landlords and tenants do not cover daily business
operation in the house. Political danger for political reasons or fears of engaging in a
confrontation with the visitor due to political reasons, the host's disapproval of some
countries. The one-size-fits-all solution is not advised in the context of political risk, as
shared accommodation facilities can differ in security depending on venue.”[ CITATION
Mal18 \l 3081 ].

“Psychological risk: Mental overload due to responsibilities as a host. It is noted that

“Human susceptibility to mental prejudices and irrational behaviour;, it would often be
wasteful to completely evaluate the danger of any confident decision”[ CITATION Mal18 \l 3081
]

According to [ CITATION Fij18 \l 3081 ], “Pacific Trade Invest (PTI) Australia and Airbnb A
collaboration that will encourage inclusive , sustainable tourism and empower Pacific Island
communities has been announced. As terms of the arrangement, through a series of
workshops with locals and aspiring accommodation providers around the Pacific Islands, PTI
Australia and Airbnb will also provide training on the benefits of home sharing, as well as
share information on growing travel patterns,”[ CITATION Fij18 \l 3081 ]. “Pacific Island
households would have an opportunity via Airbnb to take full advantage of new travellers and
generate more revenue from a spare room or “fale” they may have. The framework for
hosting behind Airbnb is easy and open to several Pacific Islanders because they only require
access to a mobile phone.[ CITATION Fij18 \l 3081 ]. This initiative should be funded by the
government and tourism agencies as it will inspire people to be hospitality businessmen, help
develop the tourism sector and also help build communities on the Pacific Island. They can
take action to make their homes more sustainable for visitors by properly training and
educating landowners on sustainable tourism. "In friendly island countries, government
should promote more Airbnb as" despite these issues, Airbnb is probably a viable choice to
conventional staying facilities. Taking into account the socioeconomical aspects, the shared
market will be predicted to be a sustainable alternative to several conventional local
accommodation sector operators. Therefore, Airbnb will benefit the economy as well as it
more a sustainable compared to traditional accommodations.

To conclude, “Sharing the economy, with unique Airbnb examples, has a beneficial impact
on a triple bottom line in localities. The business can be seen as a leader in developing a
modern and stylish plan to integrate accommodation choices with sustainable methods. This
will also enable consumers to find affordable accommodation quickly and efficiently and
providing users with the opportunity to establish social links. Platform users will have the
prospect to create and enjoy unforgettable, exclusive tourism practises. Having a positive
effect on the local economy and communities and minimize negative environmental impacts
to a greater extent than conventional types of accommodation in localities will be a direct
result of this.”[ CITATION Mid17 \l 3081 ]. While a sustainable option, Airbnb's challenges and
weaknesses have an impact on its sustainability. Although some examples of accommodation
offered on the Airbnb platform are conventional, they still help a local person compared to
home-share alternatives, this will incorporate other aspects of sustainability as inspired by
Airbnb.[ CITATION Air20 \l 3081 ]. “ Drawbacks of Airbnb and the economy based on sharing
are clear, and some problems still being tackled, Although, no question that this sharing
platform is advancing opportunities for the next generation of vendors of tourism
accommodation.”[ CITATION Mid17 \l 3081 ].
BIBLIOGRAPHY
Airbnb, 2020. Airbnb Newsroom. [Online]
Available at: https://news.airbnb.com/about-us/
[Accessed 24 October 2020].

Cheng, M. et al., 2020. The sharing economy and sustainability – assessing Airbnb’s direct, indirect
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Fiji Sun Online, 2018. Airbnb Joint Venture To Drive Opportunities Into The Pacific. [Online]
Available at: https://fijisun.com.fj/2018/02/07/airbnb-joint-venture-to-drive-opportunities-into-the-
pacific/
[Accessed 25 October 2020].

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