Analysis of Airbnb's Challenges and Recommendations for Success in the Travel Industry Amidst COVID-19 Pandemic

This report analyses the challenges faced by Airbnb due to COVID-19 pandemic and provides recommendations for success in the travel industry. It examines stakeholder retention, effect of pandemic on sales, and strategies for success. The report suggests that Airbnb needs to focus on retaining stakeholders, improving customer experience, and following proper taxation policies. It also recommends strategies for attracting customers and maintaining a healthy relationship with stakeholders.

ANALYSIS OF CASE
STUDY

EXECUTIVE SUMMARY
The travel and tourism is been facing many challenges because of the pandemic of COVID
19 . Various restrictions were imposed on travel and rental spaces for recreation and enjoyment
which has adversely affected the Airbnb performance. The main motive of this report is for
studying and examining the concerns and situations faced by the business enterprise in the period
of COVID 19 out break. It has been analysed that the retaining of stake holders was the main
difficulty which organization was facing and because of that they were not partnering and
financing with others tourism and travel operators who have winded up the business operations.
Consumers have also shown negative activity which has halt the development and growth in the
current time. So the report is giving efficient and effective recommendations for achieving
success in the modern-day industry by putting more focus on consumers needs and choices.

Table of Contents
INTRODUCTION..............................................................................................................................4
MAIN BODY.....................................................................................................................................5
Statement of problem....................................................................................................................5
Assess the current situation faced by the Airbnb .........................................................................7
Assessment of an analysis with generation of the ideas and alternatives solutions which is best
fit to issues and problems.............................................................................................................9
.........................................................................................................................................................11
CONCLUSION ...............................................................................................................................11
REFERENCES.................................................................................................................................12

INTRODUCTION
This report focuses on studying and examining the effect of COVID 19 pandemic in stake
holders retention for the growth and success of the business organization. Pandemic of COVID 19
has created very bad condition for all the businesses who have to lessen the business operations
because of the precariousness and condition of COVID 19 pandemic. The tourism and travel
sector of all the world has got adversley impacted and turned out in negative conditions. The
reports will state the effects of pandemic of COVID 19 on Airbnb which has been explosively
growing since the year 2008 in the sector of tourism and travel. The business enterprise gives
opportunity to all the owner of homes for renting the sapces and property to the needy ones
(Chau and et. al., 2022). The enterprise is been performing brilliant in the sector post COVID 19
pandemic but now the difficulties of less profits is affecting in retaining of stakeholders. So the
report is examining the challenges and problems faced by Airbnb in COVID 19 pandemic. There
will also be a brief discourse discussion which will be based on different literature reviews and
sources for effective gaining of business organization performane information. Proper
recommedation and paln of action presented in the report for resolving and over coming which
are been faced by the business organization.
Aims
For examining the effect of pandemic of COVID 19 in stake holders retention for success of
busines enterprise.
Airbnb case study
Objectives
For examining the demands of retention of stake holders for success of Airbnb.
For identification the effect of pandemic COVID 19 on sales growth of Airbnb.
For analysing startegies for stake holders retention for success in long term for Airbnb.

MAIN BODY
Situation description
This case study orbit around the Airbnb which is a service oriented businss organization
which gives opportunity to persons for renting the spaces and houses to out siders and travellers
who are in search of places for staying. The business enterpise was established in the year 2008 in
Calofornia, United States. It was founded by 2 college friends Gebbia and Chesky as they wanted
to do business for paying the rents. Company givess services to the stake
holders,guests,workers,societies,hosts and holders of companys share the accomadation of home
for staying purpose separately with out any disturbance. They have been usinsg online platforms
and online sites for marjketing the business model which was very unique at that time. Company
experienced excellent growth in the year 2010 and 2011 as people used Airbnb fors booking rental
spaces which significantly increased the grwoth rate by 8%. Enterprise had expanded the business
activities in global markets and soon grew the business of rental spaces and properties in alomost
90 countries (Joshi and Gupta, 2021).
Company was very popular and was growing exponenetially but were facing many troubles and
issues in the business as many guests were damaging the rentals spaces and properties which
adversely impacted the business. When the pandemic of COVID 19 hit the business ite resulted in
less revenue and profits due to lock down.The lock down imposition and various other
restrictionss leaded to loss of jobs of the individuals who were doing jobs in Airbnb. The
pandemic of COVID 19 has changed the minds and thinking patterns of individuals who are
travellers who are preferring to stay in hotels rather in Airsbnbs due to different rules and norms.
Closed down of hotels, historical monuments, amusement parks, sports events and theatres
resulted in failing of travellers attraction which is negative factor for Airbnb.
Statement of problem
For examining the demands of stake holders retention for Airbnb success
According to the main person in the business organziation which controls ,monitors and
do investment of efforts and time for retaining the belief in business organization for long period
of time are known as stake holders. The business enterprise such as Airbnb has got significant
share in market and growth of sales because of innovative idea of giving services of house
finding and destinations for consumers. Business organization stake holders consists of workers,

guests,hosts, investors and communities who are crystal for success of enterprise (Özgit and
Uludağ, 2022). The business enterprise hass got short time finanace of 2 billion dollars even
before the pen of time which makes some how for performance of business operations. The grants
were given by financers and stake holderss who believed in getting of decent returns on
investment as the organization had effective vision and mission for long period of time. So the
stake holders must remain happy as the organization will function by building of trust and
contellation. Airbnb is facing trouble for consumer retention and also the stake holders as they are
not paying attention to giving better services online and quality. Because of this it has been
analyzed that the consumers are damaging the rental homess and properties which iss resulting in
negative effect for Airbnb. The business organization is lacking the experts advice and focus on
maintenance of good in environment towards the spaces which is a main challenge.
For analysing the effect of pandemic of COVID 19 on sales of Airbnb
According to the pandemic of COVID 19 has come with various ups and down for the
sector of tourism and travel. Airbnb has got great effect of COVID 19 pandemic on arrival of
consumers ,booking and giving rental spaces to travellers (Pardo, and Ladeiras, 2021). The
enterprise has reduced down the development of tourism industry as all business operations have
closed down the growth in tourism sector due to close of resorts and destination for travelling. The
enterprises was not been able to pay the investments returns to financiers and stake holders and
their capitalising is going down and they are facing issues for trust and confidentiality. Many
operations have failed because of misconduct of consumers by doing damage the spaces and
getting solution for it without any rent. The COVID 19 pandemic has lead to inflation in nations
which has also slow down the consumers purchasing power and because of it they are not been
able to contribute in business success. By this impact of low capital the Airbnb is not effective
for giving best services and online site for joint relationships and use of technology.
For analysis of effective strategies for stake holders retention for success in time for Airbnb
According to it has been found out that the stake holders are very important partners of
business. So it is compulsory to make strategies for improved engagement of consumers and
participation of stake holders (Servantie, Schorch and Collazos, 2022). It can done by regulation
of precautions of safety in all rentals spaces provided by Airbnb on their site. Business needs
constant marketing after the pandemic of COVID 19 for attracting consumers from various
regions for increasing the market share. Also, Airbnb must needed the good relation with

suppliers ,consumers,financiers which are the major contributors for increasing the organizations
potential. Various other strategies used by the Airbnb is making good relations with authorities
and follows all the law before renting spaces. There should be a proper law frame work for
consumers also for damage to spaces which will not harm the cost of owners and consumers will
not do same behaviour (Suthatorn, and Charoensukmongkol, 2022). By providing the services
online by making application which will give all details and brief of rental spaces will not
creates the hustle of searching. It will give the best consumer experience and take less time. So
the business must give best facilities which will not harm intentions of stake holders and
sentiments and awarded with profits and better services. Business need to examine the present
trends of travel industry after pandemic for ex- health and safety precautions ,social distancing
etc. for more authenticity and safe environment.
Assess the current situation faced by the Airbnb
Airbnb's idea is very unique in which they have generated a high revenue within very
short time period by gaining attention of large customer base from entire world. It provide a
platform to many organization that help them in promoting their properties and advertise them in
an attractive and unique way. Many travel agencies that use online website with the purpose to
promote their properties including Booking. Com and Trip adviser uses Airbnb platform to rent
their properties and home to peoples (Abuhussein, Barham and Al-Jaghoub, 2021). By this
practices, online travel agencies cut down the customer's bargaining power and establish a positive
brand image of their respective hotels. In relation to Airbnb, it has faced various problem which
are mentioned below:
 In pandemic, many online travel agencies had to face a reduction in their sale and visitors
who came their hotel through Airbnb. It impact the Airbnb's revenue and profitability
directly that disturb overall operation of respective company. Such travel agencies face
many problems in paying their mortgage payment, day to day bills and providing salaries
to employees. It create a critical situation for the Airbnb as due to COVID 19 many
individual has canceled their trip's plan that impact company's operation adversely.
Therefore, in order to maintain an effective brand image host have to refund their client's
amount due to which company's cash reserves get impacted. It become very challenging to
host and Airbnb to obey the government guidelines when maintaining their profitability
that is a negative factor for the organization.

 As during pandemic, due to many health or safety reason, individuals were feeling very
unsafe in booking Airbnb. The individuals cancellation regarding trip had decreased the
revenue record of Airbnb by 44 %. Employees working in Airbnb faced many challenges
to survive as company failed to pay basic salaries to its workers (Becken and Hughey,
2021). Market value of company also decreased as its shareholder were not capable to
afford share of respective company and they lost their faith form the organization.
Stakeholders had also terminated their agreements with the Airbnb and start their operation
as a separate business with the motive to earn profit.
 It is very challenging for Airbnb to manage a healthy relationship with its stakeholders ad
they are operating a hotel chain but do not pay tax like the other hospitality organization.
The have make a collaboration with several host but they do not follow a proper policy
regarding taxation that create a negative brand mage of the Airbnb. In business expansion,
stakeholders play a major role in term of brand promotion and financial support. Thus, by
maintaining an effective relation with stakeholder and hots, help the company to gain
various competitive benefit that is very significant for any business like Airbnb to
compete with various challenges. As other rivals also providing same service, in this case
it is another issue for Airbnb. To overcome from such issue Airbnb need to create
strategies and policies that can help them in competing with its rivals and attract a large
number of the customers effectively (Chen, Huang, and Li, 2022).
 Airbnb has collaborated with various local hotel that are strength of respective travel
agencies and support it for its smooth functioning. But sometime, host failed in fulfilling
the customer satisfaction level because of the few reasons that put company's profitability
in a decreasing side. Individuals writhe negative comment on the social media regarding
Airbnb's service as resulting it decreases its booking. Customer also face many problem
there as they have to wait for a long time during check in or check out process. Unexpected
emergencies also faced by the hosts due to certain technical errors in their internet
connection or power outage that impact the customer's experience.
 Apart from the pandemic challenges, there are other various issue that are faced by the
Airbnb. These challenges include decreasing in customer base, miss use of the property
and many more. It mat interpret a wrong idea to its customer that lead a high decline in
customer base. Poor hospitality services may impact customer's travel experience that

creates an adverse impact on Airbnb's brand image. Sometimes customers refuse to pay an
additional charges for hospitality or other services that is necessary for maintaining a
clean environment of property (Wilks and et. al., 2021). Illegal practices of customers and
property damage is another issue for the Airbnb as individuals slender changes their
perceptual experience due to these kind of reasons that is not good for organization.
Assessment of an analysis with generation of the ideas and alternatives solutions which is best fit
to issues and problems
As Airbnb is facing various issues or problem in its operation that lower down company's
revenue generation on a regular basis. Therefore, it become significant for Airbnb to overcome
such challenges so that it become able to acquire a large market area. Airbnb has very unique idea
that can enhance its visitors traveling experience. Airbnb has faced a lot of difficulties in
managing its stockholders along with meeting criteria of the taxation. Due to pandemic
company's operations get stricken on a large scale that have to be adjusted with situations
(Hambira, Stone and Pagiwa, 2022). Therefore, Airbnb has implemented certain solution with the
purpose to overcome such problems in the different aspects that are discussed below:
 Airbnb can attain its target effectively by maintaining a good relationship with its
stakeholders and other other supply chains. For this, respective transition need to formulate
a contingency plan that result into high level of the providing services to its customers. If
stakeholder become Airbnb's host by collaborating with it the respective firm can acquire
a large market area as it will become able to meet the customer's requirement timely.
Airbnb's host should modify their service in such a manner that can meet its customer
requirement as it help in an effective customer engagement form across the world within
short time period. They should be more focused on maintaining a proper infrastructure
that look presentable and attract customers.
 It is essential for Airbnb to ensure its compliance with effective safety regulation which
can aid them to compete with the pandemic impact. Before performing its promotional and
marketing practices, company must have to regulate all the organizational guidelines and
policies that fulfill COVID 19 requirements. It is mandatory for Airbnb to follow all the
regulation, laws and rules that are formulated by national government regarding COVID
19. hosts and properties should meet all the fixed criteria by maintaining a social

distancing and wear proper mask at workplace. They should also maintain a better hygiene
level that can boost company's sales by gaining customer's attention (Karsavuran, 2021).
 It is responsibility of Airbnb to complete all the taxation formalities so that government
can support them in its operation as per the current changing market trends. Assets and
properties of Airbnb must be legally accepted by country's government that provide a
support to the Airbnb. If respective organization want to avail all the benefits of society
then it should have to fulfill all its social corporate responsibilities and return to the
society effectively. All the activities performed by Airbnb should be carried out ethically
so that it does have to face any legal or social challenges. Company should formulate such
strategies that help them in fulfilling the customer's desires.
 In order to eliminate all the negative comment form social media platform, Airbnb need to
monitor its market practices to find out actual reason of such impact. It is very essential for
Airbnb as it help them to maintain its brand image across the globe that resulting into
higher revenue generation and profitability. By this, respective company will become
capable to find out unforeseen obstacles and challenges that may impact their long term
sustainability within marketplace (Lombardi, e Cunha, and Giustiniano, 2021). Airbnb
should conduct a productivity and performance reviews on monthly basis so that it can
eliminate all the errors and faults fro its operation management. It help the company to
modify its procedure and plans in such a manner that can satisfy all the community
including, shareholders, guest, customers and stakeholders.

CONCLUSION
The report states that the travel and tourism sector has leaded to many challenges in the
time of COVID 19 pandemic. It is the main challenge which is faced by organization for
achieving success and completing demands. Stake holders such ass investors,consumers,board of
directors and partners are not interested in organizations policies and performance as because of
low operations of markets and restrictions. Besides this the troubles also consists of consumers
behaviour and workers turnover which has lowed down the company's share in market. The report
also states the value bale recommendation for coping with challenges and development in future.

REFERENCES
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