Introduction
Airbnb is an online market space or website that hosts arrangements of offers for
lodging, homestays and shared rentals for tourists and the main approach of
their business is shared economy or peer-to-peer business where Airbnb does
not possess or hold any of their real estate listings nor does it host
arrangements. Airbnb only operates as property brokerage and gets
commissions from hosts for every bookings. Airbnb is located in California, USA
and through it travelers can look for accommodation based on features like
lodging type, location, prices and through their protected messaging and
interaction system guests and hosts are connected. In this report external
environment of Airbnb is analyzed and suggestion is provided for improvement.
Discussion
Part 1: Analysis of external environment and uncertainty mix
Specific environment of Airbnb:
Customers: though customers are highly interested in home sharing services but
change in preference or dis-satisfaction may impact Airbnb’s services and
offerings.
Pressure groups: Airbnb faces protest from pressure groups due to adverse
impact of short term rentals on other local housing prices (Lehr, 2015).
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MGT201 Fundamentals of Management

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