Analysis of Airbnb: Challenges and Solutions during Covid-19 Pandemic

This project is based on conducting an in-depth analysis related to issues and challenges faced by Airbnb during the Covid-19 pandemic. The report covers key perspectives of a business which are essential to be taken into consideration while dealing with major issues. The report will also cover research and critical literature reviews which will provide a key competitive advantage to the company. The report includes a brief review of literature based on the organisational performance development. This project will also include key recommendations and strategies which are essential part of the project in order to analyse challenges that are present at the marketplace.

Integrated case study
analysis (Airbnb)

EXECUTIVE SUMMARY
The Covid-19 is a major pandemic which has created an obligation on many
organizations which has led to create economic loss. Covid-19 has created a major obligation on
various business organizations that are operating in the international marketplace. This project is
thus based on conducting an in depth analysis related to issues and challenges faced by a
business firm. The report covers key perspectives of a business which are essential to be taken
into consideration while dealing with major issues. The Project is going to evaluate key
perspectives of a business which are essential in making it more competent. This report will also
cover key perspectives of Airbnb organization to find out solutions of major problems. The
report will also cover research and critical literature reviews which will provide a key
competitive advantage to the company.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................5
Situation description...............................................................................................................5
Statement of problem.............................................................................................................6
Evaluation present condition faced by Airbnb.......................................................................7
Classification of the analysis along with ideas of generation and alternatives solutions which
is best fit for the issues and problems...................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The main aim of this project is to find out key obstacles and hurdles which are developed
by a business firm in order to achieve goals and targets (Meyer, Prescott, and Sheng, 2022).
Covid-19 pandemic is a major disaster which originated from Wuhan City of China and spread
all across the globe. This pandemic created major problems for the business organisations and
made them suffer from huge loss. In this project example of Airbnb company is taken into
consideration which is performing it operations in the hospitality industry since 2008. The
company is providing a chance to owner of the homes for taking weekend property to needy
people. The business organisation is performing well in the hospitality sector and developing
crucial approaches to increase profitability. In the recent times, the Airbnb is facing critical
issues related to effect of Covid-19 pandemic. The project will include a brief review of literature
based on the organisational performance development. This project will also include key
recommendations and strategies which are essential part of the project in order to analyse
challenges that are present at the marketplace.

Aim
The primary aim of this project is to analyse the way in which Covid-19 pandemic has
affected functioning of AirBnB through analysing a case study.
Objectives
 To analyse in brief what is the need of doing retention of major stakeholders in order to
gain success for Airbnb.
 To develop identification of impact created by Covid-19 on development of Airbnb.
 To identify the main strategies for interest holders retention for success of Airbnb in long
term based functioning.
TASK
Situation description
In this case study, Airbnb and its analysis is performed in order to know the strategic
evaluation of key sources. The Airbnb is a hospitality industry based major organisation which
provides property owners to rent their houses. This company was established in the year 2008 in
the California, United States. The company is founded by Chesky and Gebbia, who used to study
in the same institution. The various stakeholders of Airbnb are host, society, guests and
shareholders. The company has also established standards in business functioning by adopting
crucial strategic measures (Manuel, and Herron, 2020). Online platform of Airbnb is a direct
solution in the field of digital business and it is also helpful in providing quick and accurate
operations. The company is also experiencing an major improvements in its booking in the year
2011 rise by 8%. Airbnb is currently operating in and above 89 Nations.
Another issue which is faced by Airbnb is related to damaging property by major
customers. This issue is creating hard-side problems for the company and creating a major loss
situation. Covid-19 protocols also created key hurdles as well as obstacles which are essential to
be dealt with strategies and planning. The Covid-19 has also created closing of different business
entities in the era of pandemic.

Statement of problem
For analysing the needs of retention of stakeholders for success of Airbnb
As per the views of Pinzaru, Zbuchea, and Anghel, 2020, stakeholders of a company are
the precious resource for the organisation. The efforts and time should be formulated by a
business entity in order to take care of its stakeholders. The Airbnb is taking assistance of higher
level authorities in order to provide key solutions to business in dealing with key customers.
Airbnb is performing key operations in the international marketplace by adopting professional
approach to develop satisfaction in stakeholders. The majority of stakeholders who are attached
with the business should include key focus on business analytics to purchase products and
services. It is ethical duty of a business organisation to create a precise environment which is
effective in taking care of the stakeholders. Retention of majority of stakeholders is very much
essential to increase its goodwill and reputation. Key stakeholders who are attached to the
business should focus on developing investment opportunities by analysis of company statistics.
For identifying the effect of Covid 19 on growth of revenue of Airbnb
According to Bansal, Grewatsch, and Sharma, 2021, the identification of impact by
Covid-19 pandemic is essential for the business by focusing on all major approaches to lead the
competition. Covid-19 pandemic has a major curse for the hospitality industry which decreased
the revenue and profitability of a company. Airbnd company in the hospitality sector has also
being affected by this pandemic in travelling. The major shut down announced by government
impacted on the functioning of business organisation. It is one of the major roles of a business to
put emphasis on majority of business functions by analysing the impact created by Covid-19 on
operations. The Covid-19 pandemic has also increased chances of business downfall of many
companies.
For examining the effective strategies for reattainment of stake holders in success of
Airbnb for long term
According to Chang, McAleer, and Wong, 2020, it is necessary for a business firm to
execute best practices related to strategies and implementation. This is one of the major roles of
Airbnb to evaluate and provide assistance to stakeholders by performing best business practices.
Main role of the company is to develop and identify major factors that are related to functioning
of the business. In order to gain competitive growth in a short span of time, it is essential for the
management of Airbnb to develop focused and systematic approach in managing retention of the

stakeholders. Effective strategies which are helpful in making a business more dynamic are
related to retention of major stakeholders. The business entity should take help from higher level
authorities like board of directors and top level management to develop retention strategies. Main
development of a business depends on identification of stakeholders and impact of Covid-19
pandemic on them. This is major role of a business entity to evaluate best practices related to
business growth and development in order to achieve goals and objectives. The main aim of
organisation is to ensure success in the tough times by ensuring key practices related to welfare
of stakeholders. Business organisation like Airbnb has also took assistance of digital business
performing techniques which are helpful for growth and expansion. The main aspects which
need to be covered by an organisation are focused towards development of plans and policies.
Business organisations in the global and domestic marketplace have already stated that pandemic
can impact on them in a negative manner (Breier, Kallmuenzer, and Tiberius, 2021). Key role of
management of a business is to formulate best practices related to systematic growth by
analysing significance of strategies. The planning and strategic frameworks are also important
for the organisation in order to increase chances of business success.
Evaluation present condition faced by Airbnb
The Airbnb Company is providing crucial services in the hospitality sector since a long
time. In order to get revive from the current situation, it is important for a business organisation
to take assistance of tools and techniques that are based on information and technology. Digital
business is main type of business which includes focus on key operations through latest
technology based approaches. The company should formulate key and major practices which are
important for business growth and development (Fairlie, 2020). Airbnb Company is using
modern technological tools in order to develop its online functions. The online IT dealing
agencies are recently facing major downfall in relation to Covid-19 which is impacting on whole
travel and tourism industry. The tourism based industries are currently facing the following
problems in the contemporary business environment:
 The business entity is currently facing major property damage based issues which are
creating a major loss in assets. In current marketplace it is necessary for Airbnb to
eliminate this practice of property damage in order to protect the precious objects of
company. The major companies in the international and national marketplace are
focusing on evaluating best practices to deal with this property related issue.

 Another major challenge which is faced by Airbnb includes impact of Covid-19 on its
business operations and functions. This is one of the major roles of a business to focus on
analysing key factors that are external and internal and their affect on business entity. The
Covid-19 stopped functioning of business entity in a well defined manner in order to
increase chances of systematic growth The Covid-19 pandemic has also led to create
major competitive advantage based factors in order to increase the overall benefits related
to business functioning. The Covid-19 pandemic has also led to create an obligation on
business based development aspects which are creating majority of impacts. The situation
of lock down was also a major turning point for companies in hospitality industry to
include major focus on effective operations.
 Another problem which is result of the pandemic states that customers after Covid-19
pandemic are resisting themselves from booking. It is main role of a business to support
key development based frameworks that are essential for increasing the chances of
expanding business activities. All major stakeholders of company are essential to be
supported by a business organisation in increasing chances of success. Key role of a
business is to develop key approaches which are effective in dealing with majority of
customers (Crick, and Crick, 2020). Impact of majority of strategies is essential for
business growth. Customers are afraid of spread of this communicable disease and they
are also maintaining social distancing. Analysis of preferences of customers is also
important for a business entity to support development of key factors and approaches
which are maintaining strategic frameworks.
 Maintaining precise relationship with key customers is essential for the overall
development of a business entity. The key relationship based parameters are essential to
be analysed by a business organisation in order to formulate well developed and managed
practices. The customer relationship management and key aspects of relationship
development are helpful for supporting key functions of a business (Alves JC and Hao,
2019). In order to manage key relationship with major customers, the company should
put emphasis on its current strategies and their implementation with major supervision
and control.

PEST analysis
The PEST analysis includes focused approach in analysing components related to
external and internal environment. The PEST analysis is an universally adopted approach to
develop effective services in developing stakeholder welfare strategies:
 Political factors- The political factors are associated with government formulated
corporate laws. The government should develop major external environment based
factors and its related factors in contemporary environment. The Airbnb follows all
corporate world based laws and policies to survive in the tough competition. The political
factors also depend on the sustainability based approaches which are helpful in stable
operations.
 Economic factors- The economic factors include inflation, deflation and recession rates
which are essential to be developed by a business entity (Choudhury, and Pattnaik,
2020)In order to gain increase in key operations of a business, it is necessary to deal with
the situation of inflation which has prevailed in the economy due to Covid-19.
 Social factors- In the functioning of a business entity to develop key focus on social
factors to perform better functioning. The social factors include traditions and beliefs of
society which are effective in making a business more dynamic. Airbnb is also involved
in development of a workplace and internal environment by taking care of employee
needs and wants according to their traditions and culture.
 Technological factors- In the recent times, information and technology is spreading at a
faster pace. This has created a major impact on business functioning as digital business
toolkits are essential to be formulated according to the dynamic business environment
(Ashaye, and Irani, 2019). The usage of advanced technology based tools like customer
relationship management and management information system by Airbnb will make
business more effective in the stiff competition.
SWOT analysis
The SWOT analysis is considered as major business tool and framework which is used by
many business organisations in order to analyse major strengths and weakness. The application
of SWOT analysis for the Airbnb Company is mentioned below to evaluate its present condition:

 Strengths- The strengths are considered as major capabilities and power of Airbnb which
includes professional management. The strengths of Airbnb also include its planning and
dynamic business performing techniques that are essential for survival at the marketplace.
 Weaknesses- Key weaknesses of Airbnb are the limitations and drawbacks which makes
it harder for the company to survive at the marketplace. The digital marketing operations
and investigation department of Airbnb are major weaknesses which impact on its
functioning.
 Opportunities- Growth and expansion at the marketplace are two major opportunities
that are available to Airbnb. The major opportunities for Airbnb are considered as the
golden chances which will help in revival as well as increasing investment opportunities.
 Threats- The threats are main limitations which can create major impact on revenue and
profitability of company (Woo, Uysal, and Sirgy, 2018). The key threats for Airbnb
include competitors based threats which consist of companies that are creating obligation
to perform main business practices.
Classification of the analysis along with ideas of generation and alternatives solutions which is
best fit for the issues and problems
It is essential for the Airbnb to perform major and critical analysis of major factors which are
responsible for increasing chances of threats. The company should focus on creating in depth
analysis of major factors which are impacting on its functioning. It is also crucial for the
company to focus on developing and performing effective measures in order to deal with Covid-
19 pandemic (Duarte Alonso, and Nyanjom, 2017). The analysis of case study mentions that it is
also important for the company to focus on analysing the external and internal factors that are
impacting on its relations major stakeholders. The major solutions according to the issues which
are faced by the Airbnb in its functioning are mentioned below:
 Stakeholder relationship- •Good relation with the stakeholders and chain of deliver will
assist Airbnb for accomplishing the goals in higher manner. They will create and make
plan of contingency with a view to develop effectiveness in majority of operations. The
stakeholder collaborates with Airbnb to turn out to be the host so the huge marketplace
may be received through offering the carrier and call for that's required to clients (Vitolla,
Raimo, and Garzoni, 2019). As in line with the necessities the host will alter and
customize the offerings which facilitates in engagement of clients from the entire

international in brief duration of time. They must be formulated on the basis of right
infrastructure which seems presentable in actual existence in addition to in order that they
fulfil the client’s expectations.
 Digital business operations- Airbnb should evaluate and develop advertising and
promoting its business activities on social media websites like Instagram, You Tube, Face
book and Twitter (Hristov, and Appolloni, 2022). This play an essential role for
increasing main strengths and capabilities of business by reaching major customers all
over the world. This could effect in higher sales generation and seek attention of target
audience. This assists them in comparing majority of operations in a well defined manner
by also taking assistance of IT experts which will increase to be critical for marketplace
sustainability in long term. This will help them in adjust the plans and process so as to
fulfil the throughout network which incorporates their shareholders, host, stakeholder and
customers (Ramus, and Vaccaro, 2017). The digital business operations will also support
company to maintain competitive advantage by performing functions in a quick and
accurate manner.

CONCLUSION
From the above stated research project it can be concluded that it is very much necessary
for a business entity to identify key contemporary issues in order to gain growth. The analysis
and identification of key contemporary issues helps a business entity to increase chances of
organisational success. This project analysis concludes that in order to gain competitive
advantage in a set period of time, it is necessary for the business organisation to develop
supporting functions. This analysis concludes importance of planning and strategic framework
which is essential for certain growth based aspects. The above discussion also concludes that in
order to gain competency edge, it is necessary for a business organisation to evaluate best
business development methodologies and advantages.

REFERENCES
Books and Journals
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