Operations of Airbnb - Business Model

Running head: OPERATIONS OF AIRBNB
Operations of Airbnb
Name of the Student
Name of the University
Author Note

OPERATIONS OF AIRBNB
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Table of Contents
1. Introduction............................................................................................................................3
2. Organizational overview........................................................................................................3
3. Business model.......................................................................................................................4
4. Website analysis.....................................................................................................................5
4.1 Website contents..............................................................................................................5
4.2 Hardware Infrastructure:..................................................................................................6
4.3 Software...........................................................................................................................6
4.4 Security issues..................................................................................................................6
4.5 Transaction process..........................................................................................................6
5. Discussion..............................................................................................................................7
6. Recommendation....................................................................................................................7
7. Conclusion..............................................................................................................................8
8. Individual contribution...........................................................................................................9
9. References............................................................................................................................12
10. Appendix A........................................................................................................................13

OPERATIONS OF AIRBNB
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1. Introduction
E-commerce operations strategy can be defined as the type of strategy which is
used in most of the e-commerce businesses to enhance their business operations and net
profitability (Leung et al. 2018). The key elements of the e-commerce strategy are global
and domestic shipping, fulfillment and order logistics (Gibbs et al. 2018). The selection of
the e-commerce business strategy depends upon the selection of the e-commerce business
models (Sunarya, Nurhaeni and Haris 2017). The entire business transaction of the e-
commerce businesses depends upon the selection of the business models.
This report will be very much beneficial to understand the standard operations of
AirBnB which is one of the biggest online market place of United States of America. This
report will be having numerous sub sections and each of the section will be very much useful
to understand the effectiveness of the operations of AirBnB. The structure of this assignment
include the overview of the target organization, business model used in this business,
content and the infrastructure of the organizational website, recommendations for
enhancing their operations. The individual contribution of each team member shall also be
demonstrated in this report.
2. Organizational overview
Established in the year 2008, this private sector corporation provides high quality
service to the lodging and hospitality industry. The revenue of this organization by the end of
the year 2018 was USD$2.9 and the net profitability of this business was USD$480M in the
year 2018 (Airbnb.co.in. 2020). More than 15000 employee works across different
departments in this commercial establishment.

OPERATIONS OF AIRBNB
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The mission of this online market place is to create a virtual world for the consumers
so that they can live in it rather than just travelling to it (Zervas, Proserpio and Byers 2017).
The vision of this organization is to enhance their business area to new market areas
(Reinhold and Dolnicar 2018). The employee alignment of Airbnb is very much on the
higher side as compared with the other online market places of United States and the
organizational structure of Airbnb is inter-supportive matrix structure.
Figure 1: Brand Vision of Airbnb
(Source: Chua, Chiu and Bool 2019)
3. Business model
The success of the operations in this organization depends hugely on the business
model which is deployed here. The three prime components of the business model are host,
visitor and the organizational portal (Boswijk 2017).The business operation of this
organization is done with the help of the following business model. The customer base,