Airbnb: Challenges and Implications for the Online Marketplace and Hospitality Service

Running head: AIRBNB
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Name
Course
Lecturer
Date

AIRBNB
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Introduction
Airbnb is one of the largest online marketplace and hospitality service offering the
organization. Although it’s a company that does not own any lodging, it enables individuals lease
and rent lodging for a short-term period. This company targets more so tourist and those visiting
new places for vacation and offer them vacation rentals, apartment rental, homestays for
immigrants, hostel beds and hotel rooms. Generally, we can state this company acts like a broker
since it owns none of the above property of its own. This company is known to be growing very
fast globally and benefiting from both sides of the customers, that is the people who want to
access accommodation and those who own the property offering accommodation. Both parties
pay some commission. It’s a huge company now having a list of more than 30000 lodgings in
more than 200 countries. The company has managed to market and develop its services at these
fast and in different new geographical areas due to the employment of market development
strategy. However, the company is facing lots of opposition different countries due to regulation.
(Coldwell, 2014) The reason behind the opposition is basically because it’s preventing business
owners owning this accommodation service company to Flagg and lack market.
From a research point of view, this company is in position to overcome these restrictions.
Though it is facing and will face the challenge it may end up penetrating the market and even
practice monopoly type of market ownership. This is so since the company is an online platform
that offers services and people don’t need to travel to book for the house. The booking,
negotiations, and payments are domes online. This, therefore, makes its customers work easier
and they will definitely prefer this service than traveling to look for the service manually. The
company can also succeed because it has excess production of its service. This company is not
limited to only one geographical area and therefore the restriction to some part does not mean