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Airbnb: Airbnb is a community built on sharing

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Added on  2021-03-24

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Ariel Castillo 23th of October, 2020 Airbnb is an online marketplace where travellers get to stay at the property listed on the site by the local hosts and was born out of necessity. That forced Airbnb to implement several measures such as a “host guarantee” offering the protection of properties, a 24-hour hotline, the doubling of staff of the Airbnb Help Center, in order to recover the trust of the customers and in the end to control somehow supply and demand.

Airbnb: Airbnb is a community built on sharing

   Added on 2021-03-24

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AIRBNB CASE STUDYAlina ShutovaAnna LeibinaTHM 121: International Tourism and Hospitality ManagementProf. Ariel Castillo23th of October, 2020
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2 Airbnb is an online marketplace where travellers get to stay at the property listed on the site by the local hosts and was born out of necessity. It is a community built on sharing and started in 2007 as an original idea by two friends who had trouble paying huge rents and had spare rooms. They got a mattress and started selling it offline as rental space. Later they also began to provide breakfast and that is how Airbedandbreakfast, later Airbnb, was born. Over time the project got transformed and shaped so we have got the chance to get to know this phenomenon. Despite its growing popularity and opportunities, there are some troubling issues that the company needed to attend and faced with in order to improve its functionality. The case study will help us to navigate and identify the core problems, its symptoms as well as trace outcomes and solutions that were implemented. The first problem that has been detected is that Airbnb can't control neither supply nordemand. For instance, the company cannot guarantee the quality of the service such as the quality of the stay that is offered by the hosts and be responsible for the behaviour of the guests. In 2011, for example, one of the hosts got robbed by an Airbnb user. This terrifying situation reflected in the company's reputation since the name of the company started to appear in some shameful headlines of the famous newspapers and on Tv. That forced Airbnb to implement several measures such as a “host guarantee” offering the protection of properties, a 24-hour hotline, the doubling of staff of the Airbnb Help Center, in order to recover the trust of the customers and in the end to control somehow supply and demand. Another problem that obstructs the company's development relates to legal issues, in particular - legal unclarity. Thus, the action of Airbnb is not regulated properly in the current legislation on renting and subletting properties which impedes the expansion of the platform. The evidence of this problem is the fact that in some places the process of renting the property via Airbnb is controlled or even prohibited. For instance, in New York exists the lawthat bans the landlords from letting or subletting real estate for less than 30 days except for
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