Airbnb

Running head: AIRBNB ANALYSIS 1
Airbnb Analysis
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Institutional Affiliation
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AIRBNB ANALYSIS 2
Introduction
Airbnb, a leading provider of online hosting services, was founded in August 2008. This
company was founded in San Francisco, California by Brian Chesky, Joe Gebbia and Nathan
Blecharczyk. The idea was born in the fall of 2007, when Chesky and Gebbia could not
afford to rent the attic. They were both unemployed and had left New York; As a result, it
creates a difficult time to achieve financial goals. The project of renting their land as a home
for foreigners would generate the additional income needed for rent. The invention of a new
business probably looked. Chesky then joined his previous roommate, Blecharczyk, to create
the site, which should serve as a platform for peer-to-peer property (Capizzani, Kim and
Obersriebnig, 2015). Airbnb allows owners to rent their rooms, including private rooms,
common areas or all properties. Airbnb has gained popularity due to the fact that not all
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visitors can stay or tourists financially in a hotel, and sometimes it is difficult to find a room
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in a busy area. Since its inception in 2008, more than 260 million people have booked rental
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properties via Airbnb.
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As Airbnb's growth and highly profitable business continues to grow globally and globally,
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the company continues to face strategic challenges that can benefit or ultimately discredit it.
One of the major challenges and limitations of the company's success is trust between
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potential hosts, Airbnb hosts and (Parsons, 2011). The strategies outlined below can be
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implemented to avoid the reliability issues that occur in an Airbnb experience.
Operations
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Airbnb is an online business center and a thermal advantage that allows people to rent or
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lease. The contract includes escape routes, areas, rents, cabins or inflatable beds. The club has
no hostel; It is essentially a distributor and collects the cost of the tariff advantage for two of
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the guests and corresponds to the reservation. "It has more than 3,000,000 hotel publications
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in 65,000 urban areas and 191 countries." (Gallagher, 2017)
According to (Gallagher, 2017) "Airbnb is available through Airbnb goals or versatile

applications for iOS, Apple Follow and Android. Registration and registration creation are
free, the economy for each visitor is 6% -12% of the cost of organizations and 3% to 5%,
they share an advantage. Similarly, hosts can host experiences, such as travel, offered to
customers for an additional amount, from which Airbnb charges a 20% commission. look for
different hotel services in different ways. Such as the availability of accommodation, the
dates of the nights, the area they need and the costs that may increase. "When making the
AIRBNB ANALYSIS 3
reservation, the customer must have a known name, an email address, a telephone number, a
photo, payment information and, if the guest requests, specify an analysis of the ion
management card." Visitors are required to connect to any home.
The exchange economy proved undeniable. The inspiration for this test is whether and how
Airbnb's "here and now" rentals will affect hotel performance in the United States. Although
Airbnb is not the main place to hire "here and now", it has become a pioneer in the industry.
Airbnb is a leading organization in this new and growing offering. In parallel, it is used in the
private sector as a transitional hotel because it allows people to stay in a room, a chair or a
house, an unstable building to rent. (BusinessInsights, 2017).
By December 2015, Airbnb had 60 million customers with access to the territories of 34,000
urban communities in more than 190 countries, with an average of one million overnight
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stays. Contrary to popular belief, Airbnb is often not the most advantageous solution for those
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seeking a permanent agreement. "The standard fare paid for an Airbnb aircraft in a year
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ending September 2015 was $ 148.42, 25% more than the standard price of $ 119.11 paid for
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a period other than the STR."(Lane, 2014)
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Airbnb analysis
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Airbnb’s PEST Analysis

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PEST analysis is an important technique for studying the political, economic, social, and
technological factors that affect a business unit (Lee, 2016). In that sense, this technique will
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help Airbnb gain an adequate view of the nature of the business environment, enabling it to
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make informed decisions. Airbnb Trips is an online platform that allows users to access
services through mobile devices such as smartphones. As a result, the PEST analysis plays an
important role in assessing the firm's macroeconomic environment.
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(a) Political Factors
The political environment behind Airbnb's travel poses a major threat to the company's
business. Due to the increasing technological nature of global operations, the use of the
organization's online applications is in compliance with the strict laws and regulations of
governments of different nations (Lee, 2016). In addition, political turmoil in some countries,
such as the Middle East, is reducing the number of people with Internet access, disrupting
Airbnb's business.
AIRBNB ANALYSIS 4
(b) Economic Factors
Airbnb competes with companies offering similar hotel services. As a result, market share
may be reduced by the competitive replication of the Airbnb Trips model on the market. The
current global economic crisis may also force travelers to abandon their online hotel
reservations to find alternative spaces offered by other companies, which adds to the losses.
(c) Social Factors
The macroeconomic environment of Airbnb Trip also takes into account social opportunities
and threats. The application will enhance the social experience by developing habits related
to your personal or collective interests. In addition, the application will improve the change in
the global lifestyle, increasing the number of travelers, thus reinforcing the business model of
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the company (Yannopoulou, Moufahim and Bian, 2013). However, irresponsible individuals
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and negative ethical considerations can ruin the company's brand, which affects its reputation
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around the world.
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(d) Technological Factors
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The applicability of Airbnb Trip is determined by the ever-changing global technology
infrastructure. In that sense, mobile technology has increased the number of people who can
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access the Internet and have secured online hosting services. As a result, the company has a
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rich resource for expanding its public base through technological access. In addition, being
properly connected to the Internet allows management to collect enough data to improve and
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mitigate application weaknesses.

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Airbnb’s SWOT Analysis
SWOT analysis is an effective analytical tool that assesses the strengths, weaknesses,
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opportunities, and threats that influence the macroeconomic environment. The idea of Airbnb
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Travel Services is to share ideas and destructions with strangers, a strategy that can be
influenced by the existing SWOT elements. Because of these uncertainties, the SWOT
analysis is an important way to evaluate the business environment of Airbnb Trips to improve
the services offered.
(a) Strengths
Airbnb uses a peer-to-peer business model that allows customers to easily share their
resources. In addition, AirbnbTrips provides a strong image, developed by highly qualified
AIRBNB ANALYSIS 5
employees for customers. The application of the company will have more than 670 thousand
properties in 2019, with capacity for more than 10 million passengers and 4.5 million
registered and active users (Zervas, Proserpio and Byers, 2014). In addition, Airbnb Trips has
gained enough online confidence for your website to have a unique and sophisticated UI /
user interface design. It should be noted that these strengths provide the company with a
competitive advantage that allows it to focus on the central issues of hospitals through
innovative business strategies.
(b) Weaknesses
Airbnb does not pay enough attention to the positive environment that influences its
collaborative consumption model and its ability to replace, although the mobile application
has changed significantly. In addition, the company's travel application is not commercially
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differentiated, as it does not offer new services that affect competitiveness (Zervas, Proserpio
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and Byers, 2014, page 95). Another weakness that affects the operations of the company is
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the existence of rigid and obsolete local and central laws. The presence of these
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vulnerabilities disrupts end-to-end services that hinder the delivery of customer service to the
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classroom.
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(c) Opportunities
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As mentioned above, Airbnb uses the peer-to-peer business model to establish standards and
regulations based on its pioneering work in the hospitality industry (Zervas, Proserpio and
Byers, 2014, p.98). The use of the new application with Internet technology has increased the
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number of potential customers by 45% per year. The result is that the organization offers
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unique and alternative hotel and hosting services that differentiate it from other providers. For
this reason, Trips offers the opportunity to sign up for a co-owner and improve business by
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sending messages to people who are sitting without announcing their availability.
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(d) Threats
Airbnb's new business opportunity is about the fierce competition that companies face when
they copy their technologies and offer similar services. Clickandrent.com and 9flats.com are a
good example. Legal issues related to health and safety and, more importantly, tax laws have
discredited the capabilities of the company's potential customers (Zervas, Proserpio and
Byers, 2014, p.99). Third, administration's use of the new application addresses unexpected
issues arising from the applicable business model that affects the common economy. As a
AIRBNB ANALYSIS 6
result, inadequate integration prevents management from offering acceptable housing due to
non-Internet-related threats.
Impact on hotel operations
Airbnb hotels have an impact on classic accommodations. Demand reductions cause most of
the employees to lose to the motel. One can imagine if the Airbnb is large enough to affect
the usual comfort sharing. For example, Moyock also claimed in the article that industry
experts, who had commented on Airbnb, should have limited their size and showed little
potential effect. (Mayock, 2017) states that "Airbnb's total inventory of 300,000 publications
represents about a quarter of the number of nightclubs in the South Atlantic region of the
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United States." The Airbnb had 67,500 publications in 2013 The American Airbnb and the
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uncontrollable increase in supply, which represents only a small part of almost five million
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halls in 2011 in the United States of 2012. "This subject only speaks of a small allocation 500
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million overnight stays in the United States were sold for most of 2012. "Sleeves sold until
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June a record 500 million nights.
In the end, the effects are legitimate and focus on the three problems they contain. Airbnb
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does not want to talk to anyone because some of its visitors do not usually stay in a traditional
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establishment and never reach the size of the standard amenities segment. However, these
Airbnb attributes are fully predictable, even with the expected problematic premises. As
discussed above, the problematic process usually begins with an article that initially has only
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a small customer that meets regularly at the end of the market or another market, and the
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circuit breaker follows the lines rejected by large non-conforming organizations with limited
industry interest underlying economic situation. "(Guttentag, 2013), of course, this second
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hypothesis, far from paying for Airbnb certification, is fundamentally problematic, but it is
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recommended to test the appropriate and informed hypothesis.
Lessons hotels can learn from Airbnb
The hotel industry has always been competitive with alternative accommodations, from guest
houses to places of interest and cruises. However, in recent years, growth driven by the
shared economy has resulted in a rapid increase in the number of car rental sites of the same
type as Airbnb. Immediately after learning that Airbnb was worth $ 10 billion, more than
AIRBNB ANALYSIS 7
Hyatt and other major hotel brands, we wanted to share valuable information about how to
adapt to changing tastes of travelers.
1. Offer authentic local experiences.
Alternative hosting sites, such as Airbnb, attract travelers looking for unique and authentic
experiences. Instead of focusing on popular attractions and restaurants, travelers will find
restaurants in areas and attractions off the typical tourist road. Many are looking for hosts
who can give them a taste of local life.
The hotels also have the opportunity to give you an idea of your local life. Employees can be
encouraged to share their knowledge of the neighborhood and advise their clients at popular
access points. Small details such as craft beers and local wines in the minibar, or the
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exchange of local artwork exhibits in the lobby create a different and engaging experience.
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2. Know which amenities are actually necessities.
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Users expect more and faster, reliable, and preferably free Wi-Fi. A high price for what many
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consider necessary may make travelers dissatisfied, especially if internet access is free for
most rentals. Some of these features provide additional connectivity by providing local
phones or portable mobile hotspots for guests.
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To meet travelers with plugins today, hotels must offer similar services, either through loyalty
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programs or free to all customers. To learn more about the importance of Wi-Fi for travelers,
see "Why does Wi-Fi prevent hotels from getting a 5-star rating?"
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3. Human connection is powerful.
Airbnb is not just a booking engine. It's a Traveler Community To dispel travelers' concerns
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about safety and quality, the service focused on building trust and building personal
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connections. Guests and their guests communicate frequently: during the consultation phase,
once the reservation is confirmed, prior to arrival and throughout the stay. Customers can also
send greeting cards to old customers through the Airbnb website.
Online reputation management solutions, such as Revinate, can help hotels stay in touch with
their customers and create a climate of trust. Features such as social network monitoring and
answering assistant allow guests to connect with passengers and improve their connections.
AIRBNB ANALYSIS 8
References
Brochado, A., Troilo, M., & Shah, A. (2017). Airbnb customer experience: Evidence of
convergence across three countries. Annals of Tourism Research, 63, 210-212.
Capizzani, M., Kim, T. & Obersriebnig, S. (2015, December). Airbnb: What’s Next?
Prioritizing opportunities in Southern Europe. University of Navarra, IESE Business
School.
Coldwell, W. (2014, July 8). Airbnb’s legal troubles: what are the issues? Retrieved from
https://www.theguardian.com/travel/2014/jul/08/airbnb-legal-troubles-what-are-the-
issues
Guttentag, N. (2013). Airbnb: disruptive Innovation and the rise of an informal tourism
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accommodation sector. Current Issues in Tourism.
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Lee, D. (2016). How Airbnb Short-Term Rentals Exacerbate Los Angeles's Affordable
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Housing Crisis: Analysis and Policy Recommendations. Harv. L. & Pol'y Rev., 10,
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229.
Parsons, S. (2011, August 4). AIRBNB and The Internet Trust Issue: Who Can You Trust
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Online? Retrieved from

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https://www.forbes.com/sites/sabrinaparsons/2011/08/04/airbnb-and-the-internet-
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trust-issue-who-can-you-trust-online/#62db3540316a
Yannopoulou, N., Moufahim, M., & Bian, X. (2013). User-generated brands and social
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media: Couchsurfing and AirBnb. Contemporary Management Research, 9(1), 85.
Zervas, G., Proserpio, D., & Byers, J. W. (2014). The rise of the sharing economy: Estimating
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the impact of Airbnb on the hotel industry. Journal of Marketing Research.

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Running head: AIRBNB ANALYSIS 1

implemented to avoid the reliability issues that occur in an Airbnb experience.

in 65,000 urban areas and 191 countries." (Gallagher, 2017)

According to (Gallagher, 2017) "Airbnb is available through Airbnb goals or versatile

Airbnb’s PEST Analysis

(a) Political Factors

(b) Economic Factors

(c) Social Factors

mitigate application weaknesses.

Airbnb’s SWOT Analysis

Impact on hotel operations

recommended to test the appropriate and informed hypothesis.

Lessons hotels can learn from Airbnb

1. Offer authentic local experiences.

3. Human connection is powerful.

Online? Retrieved from

media: Couchsurfing and AirBnb. Contemporary Management Research, 9(1), 85.

the impact of Airbnb on the hotel industry. Journal of Marketing Research.

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