Integrated Case Study Analysis of Airbnb: Challenges and Solutions

This report provides an integrated case study analysis of Airbnb, covering the challenges faced by the company in achieving growth and meeting organizational objectives. The report includes a description of the background of the organization, different theories and models, and strategic approaches such as Porter's five forces, marketing mix tool, SWOT Analysis, and more. The report also discusses the current positions faced by the company and proposes solutions to the problems.

Integrated Case Study
Analysis

Executive Summary
This report is based on integrated case study analysis of a company and for demonstrating
multiple perspectives of this report, case study of organisation named Airbnb is taken into
consideration. The different prospects of this report consist of the problems that are faced by
respective company towards attainment of business objectives. It also covers background of
organisation for making various analysis and along with it, challenges faced by Airbnb will also
be discussed for attaining its growth. Different theories and models as well as strategic
approaches such as Porter's five forces, marketing mix tool, SWOT Analysis and many more will
be considered in this report. Furthermore, current positions faced by the chosen organisation is
also going to be discussed. In addition to it, the solutions that best fit the problems of company
will also be mentioned in this existing report.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
Case Brief: Description of the situation...........................................................................................4
Problem Statement and Plan of Analysis.........................................................................................5
Statement of the problems in the case:...................................................................................5
Proposed Plan of Analysis:.....................................................................................................6
Analysis and Findings......................................................................................................................9
An assessment of the current positions facing by Airbnb......................................................9
Proposed solution to the problem..................................................................................................12
Limitations of the study........................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
A case study refers to an approach of research that helps in the creation of in-depth
analysis of a particular case, multi-faceted understanding of bigger issues in the context of real-
life. Integrated case study analysis provides an assessment of the professional capabilities along
with the skills as well as it enhances the perceptions of the reporter on the effectiveness of the
integrated case study. The perspective of integrated case study analysis consists of the
comprehensive cases which provide assistance in the process of reflecting several prospects that
are concerned with issues of marketing, situations and challenges. In order to conduct this type
of analysis, a person can enhance its written and verbal communication skills by analysing
different cases. This report includes an analysis of the case study which will be explained and for
conducting such analysis, case study of Airbnb is taken into consideration in order to
demonstrate various aspects of this report. The key aspects of this report consist of the problems
that are faced by the chosen organisation in the path of its achieving development and growth
and meeting organisational objectives. Within this existing report, there will be a description on
the background of the chosen organisation to make an analysis on the business performance. The
respective organisation is facing some of the challenges while attaining its business growth,
therefore these challenges are going to be taken into consideration. Various kinds of theories and
models will also going to be discussed in this report for conducting analysis on different aspects.
Moreover, the current positions which are faced by the chosen company will also be explained
along with the solutions to such problems which will provide assistance to the chosen
organisation in attaining its growth effectively.
Case Brief: Description of the situation
Within this report, case study of Airbnb is taken into consideration in order to
demonstrate multiple aspects of this project. This company is an American-based organisation
that is operating an online marketplace in order to offer various kinds of services such as lodging
mainly homestays for vacation rentals as well as tourism activities.
Before pandemic situation of COVID-19, Airbnb had been on an explosive growth path.
This was founded in the year 2008 as a platform for the homeowners for renting spare space
within their houses, the company had disrupted the hotel industry and had become one of the
most precious “unicorn” of the nation. By the year 2020, the respective organisation has featured

home as well as Experience listings in more than 100000 cities throughout 200 nations and this
company has also planned to go public later within the same year. The CEO of Airbnb dubbed it
an organisation for the 21st century, a company that would have an infinite horizon, improve
society as well as serve all of its stakeholders that consist of the employees, guests, communities,
hosts and shareholders of business. However, the epidemic of COVID-19 was suddenly testing
its vision and was also not clear that how long this pandemic will last, with some forecasting that
it would be for the multiple years before vaccines would allow a return to normal life of people
where they felt comfortability in travelling once again. On other hand, Airbnb had quickly
increased $2 billions of cash that provide it some safety against short-time losses. Within the
company, the leadership team would has to navigate the crisis in such a way that was consistent
with the mission and core values of the organisation. From the year 2010 to 2011, bookings on
Airbnb has enhanced by 800% and the respective organisation has hit the milestone of 1 million
nights rented in 89 nations. Within the year 2011, the second round of fundraising took place and
in the same year the company has developed German home sharing site, Accoleo, for the
international presence expansion.
Problem Statement and Plan of Analysis
Statement of the problems in the case:
The company Airbnb has faced various challenges or problems in the path of its
achieving success and meeting organisational aspirations. The statement of the problems which
are included in the case study of the respective company is mentioned as follows:
 The company has faced the problem regarding the coronavirus concerns and it continued
to spread which will be challenging situation for company to convince market-base than
its rentals are safe.
 Another problem that is faced by the respective company is associated with the
profitability as tech investors had increasingly want organisations to concentrate on
profits instead of its growth at any cost.
 Problem related to rebuilding the trust is also faced by Airbnb as it has had its fair share
of incidents which have upset its guests as well as hosts and those could complicate the
matters for its IPO.

 The problem that is associated with the damage to property has also faced by the
organisation as it was unusual for guests to damage or break property.
 Unexpected emergencies is another type of problem that is faced by Airbnb as there was
power outages, Wi-Fi interruptions and faulty appliances that have disastrous impact on
experiences of guests of home.
These all are statement of problems which are faced by Airbnb in the path of achieving
its growth and success.
Proposed Plan of Analysis:
Within this section, there will be description and evaluation of different models,
approaches and theories in relation to Airbnb for the success and growth of its business. Hence,
first of all Stakeholder Analysis will be discussed in context to the company Airbnb.
Stakeholder Analysis
This is undertaken as the procedures of evaluating a system as well as potential
modifications to it as they associate to appropriate and interested parties. Additionally, it is the
process to identify these individuals before the project initiates; grouping them based upon its
participation level, interest and influences into project as well as ascertaining how best to
includes as well as communicate every off these stakeholder groups throughout. Within
respective analysis, entity is grouping its stakeholders into groups based upon its participations,
influences, interests within business practices, ascertainment of how they may involve into firms
and others. In addition to this, it may be effective perform with uses of power interest grid that
are described below:

 High power, low interest: Within particular stakeholder matrix, stakeholders who re having
higher power for influencing the business operations but possess lower interests into it are
being undertaken into particular category. In respect to Airbnb, guest, investors,
governments and sponsors are those stakeholder who have high power but less interests. So,
it is crucial for them to keep satisfied those stakeholders about the various activities
performed in firm.
 High power, high interest: Within particular category of stakeholder matrix, stakeholders
who are having higher power for influencing business operations but possess higher interests
into it are being undertaken into this category. In respect to Airbnb, owner of the firm, board
of directors, shareholder, general managers and others are those stakeholder who have
higher power and higher interests. Additionally, these are considered to be those
stakeholders who should totally engage as well as develop the great potential for satisfying
them.
 Low power, high interest: Within particular category of stakeholder matrix, stakeholders
who are having lower power for influencing business operations but possess higher interests
into it are being undertaken into this category. In respect to Airbnb, staff and suppliers are
those stakeholder who have higher interests but power is less. Additionally, these forms of
stakeholder have to kept informed related to the project which are consider by firm and also
these are very helpful for organisation.
 Low power, low interest: Within particular category of stakeholder matrix, stakeholders
who are having lower power for influencing business operations but possess lower interests
into it are being undertaken into this category. In respect to Airbnb, receptionists, security

guard, cleaning workers and others all these stakeholders have lower interests and lower
power. Additionally, all these have only be observed from time to time as well as not get
bored with additional communications.
PESTLE ANALYSIS
Political factors
Airbnb is an exceptional plan of action. Individuals lease their extra rooms and condos to
outcasts, guests and travelers. In any case, this organization is likewise confronting a few
legitimate and administrative issues in numerous nations. Many individuals lease their areas
don't keep country lodging regulations.
Economical factors
Airbnb is a genuine illustration of shared economy likewise cooperative utilization where
individuals share their assets with the people who need it for a brief timeframe.
It has two viewpoints to consider, it is viewed as a type of revenue for the individuals who lease
space. Then again, it has shown itself a demonstrated contender to the inn business. less
expensive costs is a decent open door against its rivals "inns and inns".
Social Factors
Airbnb is a stage where it mixes societies and social orders from various regions of the
planet. Each host and inhabitant present their assumptions and encounters. For this situation,
virtual entertainment additionally assume its part and spread the voices of both host and
inhabitant. Airbnb is working in 191 nations and in excess of 34000 urban communities. Both
occupant and host have their own way of life, standard and issues. It should comprehend and
regard each culture and society to say in the common economy business.
Technological Factors
Technology is an association between networks all over the planet. Airbnb is utilizing
innovation to associate individuals. Guest can download application and use site for booking.
This kind of plan of action is absolutely depending on surveys and rating. A terrible view can
hurt the standing of the host. Hardly any awful survey and you are out of the business. Airbnb is
completely robotized and helps the two has and occupants to get associated in a positive way. It
utilizes an informing framework to confirm individual profiles of visitors and hosts.
Legal Factors

Airbnb is functional in excess of 193 nations. Each territory, state and nation have a
remarkable arrangement of lodging guidelines, Taxation Laws. It is very hard for Airbnb to meet
the guidelines of each and every country. The explanation is Airbnb is depending on individuals
hosts and visitor and they ought to meet the nearby regulations and guidelines. This is why
Airbnb is confronting claims and court procedures in New York, Florida and numerous urban
areas. Has know their neighbourhood regulations, lodging and the travel industry guidelines and
they should observe the guidelines while consenting to Airbnb terms and condition while leasing
space.
Environmental Factors
The Airbnb home-sharing model is a reasonable decision for hosts, visitors and the planet.
By picking it you can decrease squander use, energy, and squanders. As of late, Airbnb
distributed a report brought up that home sharing decidedly affects climate. Their common
economy business depends on using the current assets and going in a more well disposed and
green climate.
Analysis and Findings
An assessment of the current positions facing by Airbnb
Airbnb has confronted relentless resistance from a few significant urban communities,
because of an apparent expansion in the expense of lease for local people. Barcelona,
Amsterdam, Paris, Venice and San Francisco, among others, have established guidelines
explicitly designated at the transient rental market Airbnb advocated. In 2016, Airbnb extended
its administration to incorporate encounters, in which a host could offer visits or passes to
occasions through the application. The organization wanted to send off an aircraft, in spite of the
fact that with the Covid pandemic those plans have been deferred endlessly. For the beyond three
years, Airbnb has united its situation on the lookout. It obtained Luxury Retreats in 2017 for
$200 million, trailed by a $400 million procurement of HotelTonight in 2019. Indeed, even with
these acquisitions, it is as yet thought to be a somewhat "light" resource organization in contrast
with its fundamental opponents, Expedia and Bookings.com. Airbnb has been one of the hardest
hit stages by the COVID-19. At the pandemic situations, new appointments were down 85%,
despite the fact that application use has bit by bit expanded as nations have loosened up
movement limitations. Numerous Airbnb has in significant urban communities changed to long

haul rentals as the transient market imploded in March, as a method for keeping a consistent (if
lower) pay. To keep has on the stage, Airbnb as of late sent off month to month stays, like an
Airbnb wanted to IPO in mid 2020, yet with the pandemic it deferred its public send off until
December 2020 (Airbnb Revenue and Usage Statistics (2022), 2022).
(Source: Airbnb’s Growth Strategy: How to Make $3.4B in ARR & IPO During A
Pandemic. 2022)
Airbnb (February 3, 2022) revealed that Airbnb Hosts have procured a sum of $150bn
starting around 2010, incorporating $60bn in the US. Moreover, with the pandemic prodding a
reestablished interest in homegrown travel and staycations, Airbnb has had the option to climate
the Covid-19 tempest. As per Airbnb's Q3 2021 investor letter, Airbnb kept its most elevated
ever incomes in Q3 2021, up almost 70% year-over-year and outperforming Q3 2019 levels by
36%, exhibiting the strength of the movement bounce back for Airbnb. Sharing economy stages

have arisen on the rear of revolutionary changes in customer propensities, with Generation
Hashtag driving the pattern. As per GlobalData's Q4 2021 Consumer Survey*, 12% of
worldwide respondents utilized a convenience sharing site, for example, Airbnb the last time
they booked an occasion. This ascents to 14% of GenZ and 16% of Millennial respondents.
Additionally, convenience dividing stages have the biggest entrance between customers in the
Philippines (22%), South Africa (21%), Mexico (19%), Indonesia (19%) and Malaysia (18%).
Likewise, Airbnb saw its incomes increment by 73% in 2021, after a 31% lessening in income in
2020 due the Covid pandemic closing down movement (Airbnb has built a $150bn host
community, but challenges persist, 2022).
(Source: Airbnb Revenue and Usage Statistics (2022). 2022)
Key insights
 Airbnb produced $5.9 billion in income in 2021, a 73% year-on-year increment
 Airbnb has 150 million clients, however that number has not been refreshed beginning
around 2018.
 In 2021, 300 million appointments were made on Airbnb, a 55% increment on 2020

 There are north of 7,000,000 postings on Airbnb, show to 4,000,000 hosts
Proposed solution to the problem
Based upon the problem, some solution are proposed which are described below:
 The respective organisation have to focus on maintaining the hygiene as hospitality sector
may follow appropriate hygiene into its property that aids them in attracting much
customers. Moreover, if it is strictly follow through firms, thereafter clients would have
lower concern for health . Additionally, it would assists them in boosting its sales and
gain much revenues.
 It has been also recommended to adopt advanced technologies within respective
organisation which would be helpful in meeting the consumers desires and overcome
from the problems.
Limitations of the study
This has been analysed that limitation of study drives towards having negative impacts on
projects as well as this might effect to accomplish specified results. Moreover, it is crucial
constraints of particular study are shortage of timing for guiding the task. Additionally, there are
various study limitations which are related with current research which restricted access of
information, lack of data and others. Also, it is crucial for researcher for dealing with particular
limitation in effective way so that objectives may be accomplished.
CONCLUSION
As per the above report, it has been concluded that The COVID-19 pandemic situation have
negative impacts on organisation like Airbnb. Moreover, the epidemic of COVID-19 was
suddenly testing its vision and was also not clear that how long this pandemic will last, with
some forecasting that it would be for the multiple years before vaccines would allow a return to
normal life of people where they felt comfort ability in travelling once again. In addition to this,
Airbnb has faced various challenges or problems in the path of its achieving success and meeting
organisational aspirations as it has had its fair share of incidents which have upset its guests as
well as hosts and those could complicate the matters for its IPO. Also, unexpected emergencies
is another type of problem that is faced by Airbnb as there was power outages, Wi-Fi
interruptions and faulty appliances that have disastrous impact on experiences of guests of home.

Apart from this, stakeholder analysis is performed as it is the process to identify these individuals
before the project initiates; grouping them based upon its participation level, interest and
influences into project as well as ascertaining how best to includes as well as communicate every
off these stakeholder groups throughout.

REFERENCES
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Online
Airbnb has built a $150bn host community, but challenges persist. 2022. [Online]. Available
through:<https://www.hotelmanagement-network.com/comment/airbnb-150bn-host-
community/>.
Airbnb’s Growth Strategy: How to Make $3.4B in ARR & IPO During A Pandemic . 2022.
[Online]. Available through:<https://www.process.st/airbnbs-growth-strategy/>.

Airbnb Revenue and Usage Statistics (2022). 2022. [Online]. Available
through:https://www.businessofapps.com/data/airbnb-statistics/.