Airbnb: Challenges in Management, Operation, and Mega Trends

This report provides a comprehensive analysis of the challenges faced by Airbnb, focusing on management, operational issues, and the impact of mega-trends within the travel industry. It begins with an abstract summarizing the report's key findings, followed by an introduction that outlines the aim of the report to assess these challenges. The report delves into a company analysis, examining Airbnb's sub-sector as a travel agent and its background as an online marketplace for hospitality services. A critical analysis evaluates mega-trends, such as online booking of accommodations, and discusses the main trends and characteristics for travel agents. The report addresses issues like customer engagement, building trust, and brand awareness, offering potential solutions and opportunities for sustainable growth. Recommendations include focusing on research, marketing, product development, and support systems. The report concludes by emphasizing the importance of strategic planning to overcome challenges and capitalize on market opportunities.

TRAVEL AGENT

ABSTRACT
This report summarised that travel agent company needs to develop recent trend of
market in developing effective business operations in organisation. In this report, analysis is
provided given on the sub-sectors as a travel agent in which job role of agent is explained.
Chosen travel agent company in this report is Airbnd company which mainly done its operation
through online market. Mega-trend which is chosen in this report is providing rented rooms and
flats to travellers at destination which they prefer to visit. Critical evaluation is provided on
demand for travel agency. Issues which faced by company in developing trends in organisation
are also discussed with its solution. Issues which discussed are customer engagement and
retention, building capability and trust, working with multiple systems, and lack of brand
awareness. Solution is also provided of this issues by which company will able to grab
opportunities which overall provide sustainable growth of company. Lastly, in this report,
recommendations is provided in solving issues of company which are research, marketing,
product development and support system.

TABLE OF CONTENTS
ABSTRACT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................1
Company analysis............................................................................................................................1
Sub Sector as Travel agent- ........................................................................................................1
Background of AirBnB...............................................................................................................2
Comprehensive critical analysis..................................................................................................2
Critical evaluation of mega-trends and demand in Airbnb organisation....................................2
Critical discussion of main trends and characteristics for travel agent.......................................4
Addressing Issues.............................................................................................................................4
Argument on analysis and its solutions and opportunities..........................................................4
RECOMMENDATIONS.................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

Topic- To access the impact of challenges faced by the Airbnb in the context of management,
operation and mega trends.
INTRODUCTION
The travel agent can be termed out as a person engaged in selling and arranging
transportation, accommodation, tours and trips for travellers. Planning a trip is time consuming
and complicated process. Thus, travel agents works directly with public and converse and it is
also crucial to determine better and best possible travel destination. The present report is based
on business activities of Airbnb, it is privately held global company and it operates online market
place and hospitality services and it is need to be accessible. Thus, primary responsibility of a
travel agent is to make the process of travel planning is very easier and comfortable for clients so
that they can ensure best trip possible. Furthermore, aim and objective of project management
plan, Differ types of tourism demand and mega trends that impact the overall activities of
business enterprise.
Aim-
To access the impact of challenges faced by the Airbnb in the context of management,
operation and mega trends.
Objectives-
 To determine the issues faced by AirBnB in relation with management and operation
context.
 To explore the impact of mega trends, changing demand in travel industry.
 To recommend the ways in terms to opportunities and challenges faced by current trends
in travel industry.
Company analysis
Sub Sector as Travel agent-
The Travel agent is the person whose job is to arrange the travel and makes arrangement
for people holidays and journey. It is kind of agency that that arranges, negotiates flights,
holidays kind of facilities for the travellers (Christodoulidou and et.al., 2010). Thus, the travel
agent can be self employed and work for an independent ravel agency who provides It is
business that is designed in order to help the customers and it also aids to make the number of
arrangements for the trips in manner as tickets and hotel reservations. The better services will
always helps to attract the tourist and they perform their business activities in efficient manner.
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Background of AirBnB
The present report is based on business activities of Airbnb, inc and it is the privately
held enterprise that is headquarter in San Francisco that operates an online marketplace and
hospitality services to the people in the better and attractive manner. Thus, this firm offers the
many services to customers as arrange lodging, primarily home stays, Tourism experience etc.
Thus, they also receives the commission from every booking. This entity provides the better and
effective services to customer so that the things can be conducted in better and efficient manner.
Comprehensive critical analysis
The Airbnb is revolutionizing the over all lodging market by working as to keep check on
hotel rates so that better and quality services will be offered to the customers. Thus, it can be
stated that Airbnb is one of share economy marketplace and it will be inclusive of entire homes,
shared rooms and private room. As per the view of it can be stated that the increasing number
of the firm listing so that undesirable effects on the residential housing market can be seen.
Moreover, it can be said that the quoted firm could have adverse impact on the residence quality
of life due to nuisance caused by visitors. Thus, results from the comprehensive study will
analysing the effects of Airbnb on the hotel industry decreased the profitability of the enterprise
at 1%. Thus, stated that reputation of the firm plays essential role in the business and rating and
reviews has been possible due to the technical advancement.
Critical evaluation of mega-trends and demand in Airbnb organisation
In this globalisation world, mainly companies which has developed technological
changes rapidly are the travel industries. Therefore, there is large competition between travel
industries. Recent mega-trend which company Airbnd has developed is to book effective rooms,
flats and houses in destinations which customers prefer (Christoff, 2018). This booking of
accommodation is provided by dealing with society of particular destination in which they
agreed in providing booking of their houses from particular website of company. In return
company pay commission to owners of houses where visitor will stay.
Another mega-trend of travel industries is to provide booking of bikes and vehicles in
destination of travellers. This booking is to be provided in official website so that customers get
attracted. Nowadays, customers are attracting with destination in which travel industries are
providing effective destination with luxurious accommodation and facilities. To gain competitive
advantage of organisation, Airbnd needs to develop recent demand in market from tourism
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industry. Nowadays, customers are attracting to companies which are offering the highest
facilities in destination which they want to visit. In this digital world, Airbnd company operates
in online market platform which helps company in attracting customers through various offers
with effective packages which they directly purchased from website (Deng, Lawson and
Moutinho, 2000.). Travel agents also needs to be aware regarding trends and demand of market
so that effective explanation is provided to customer which influence them in purchasing
packages.
Graphical presentation which shows the changes which will takes place in travel
industries throughout years is as follows-
According to this graph, it is expected that online global market of travel industries will
get increased in coming years. A research project which published by market research future has
expected that there will a rapid grow in travel industries by 12% of CAGR and companies will
attain USD 1.2 billion in period from 2017-2023. Therefore, Airbnd company has more chances
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Illustration 1: online travel market
( source: Online Travel Market 2018-2023: Key Findings, Regional Study, Global Trends,
Industry Growth, Top Key Players Profiles and Future Prospects, 2018)

of getting growth in organisation with their online platform of providing holiday packages to
travellers (Law, Leung and Wong., 2004). By developing mega-trends and demand in
organisation, it will overall helps company in maximizing their profit and to gain competitive
advantage for organisation.
Critical discussion of main trends and characteristics for travel agent
Airbnd company operates for travel industries and for travellers. Company is dealing in
providing effective market pre-packaged holiday tours among potential customers. In this digital
world, company choose to operate in online market platform because this is the most recent
change which takes place in travel industries. Customers are more active on internet these days,
therefore, it is the best platform by which more travellers will get attracted in company.
Mega-trend which disused above is related with the online booking of house and flats in
destination of visitors. For operating future success of Airbnd travel agency has developed this
trend and demand in its business operation. According to study, in US private accommodation
market is the most diversified which is $36.6 billion. This recent trend of company is most liked
by customers in travel market (Magno, Cassia and Bruni, 2017).
Renting near destination of travellers provides more customer satisfaction which overall
helps in increases performance of company. This development of trend will provide an effective
customer loyalty in organisation. Customers of Airbnd are loyal towards company in which they
are ready to pay higher rate for availing space, quality, friendliness and to achieve unique
experience in travelling.
More trends are developed by Airbnd in which they have provided instant booking of
holiday packages from their websites. As a travel agent they emphasis on dealing with hotel
which able to raise standard of company. They focused on providing right home for right trip
which attracting more customers in dealing with.
Addressing Issues
Argument on analysis and its solutions and opportunities
For addressing recent trend in organisation, there are many issues which affect overall
operation of the business (Oladottir, 2017). Analysis is developed on providing homes and flats
on rent to travellers in particular destination. But there are some possibilities which faced by
company on its development. Not all the owner of houses near destinations get ready for
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providing their house on rent which create issue for organisation in providing effectual
accommodation to their visitors.
There are some issues which faced by travel agency in doing their business operations.
Issues which they faced generally regarding customer engagement and retention, building
capability and trust, working with multiple systems, and lack of brand awareness. By these issues
company will not able to grasp effective opportunities in company. For grasping mega-trend,
Airbnd will have to attract their website in helps in attracting customer, identified issues needs to
be overcome with using effective operation management.
Different management functions needs be performed in organisation which overall helps
in solving issues in developing trends in organisation. Marketing managers of organisation helps
company in doing proper research of trends which helps in analysing whether to develop that
trend in organisation or not (Javier González-Soria and Moreno de la Santa., 2018).
Product development is another measure which overall helps in developing effective product
which is beneficial for the business operations. Product development helps management in
developing new changes in existing packages or helps them in bringing new and effective
holiday packages which attract customers in organisation.
By developing effective support service system, company will able to develop effective
communication with consumers which overall helps in developing their expectations from
organisation. With development of support services organisation will able to take feedback from
customers regarding their services. These feedbacks from customers will overall helps in
improving performance of organisation which is in customers expectations.
RECOMMENDATIONS
From the above identified trends and issues, it is recommended to Airbnd company that
by developing effective strategies and policies, management will able to grasp market
opportunity for organization. Effective management research, marketing, product development
and support system will help company in developing sustainable growth in business market.
Technological development regarding travel purchases such as direct booking and reservations
via internet with specialized software will increase opportunity for company in capturing
customers of business market.
By developing effective marketing strategies, Airbnd company will able to highlight
benefits of its products and services in their websites. Company must have to provide unique
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features of their services which attract more visitors in company. By developing marketing
strategy, company will able to engage customers on social media. It is the world where all most
all age groups of peoples are available on social media. With the use of social media, company
will able to directly communicate with its customers which helps them in explaining and
promoting effective holiday packages.
It is also recommended that by developing effective support system, company will able to
take feedback regarding their provided services to customers. This support system overall helps
company in developing packages which is in accordance with customers. This support system
helps Airbnd company in solving its issues and for capturing customers of business market.
With support system, Airbnd travel agency will able to create new policies or will able to
develop new changes in their existing policy which is in accordance with the preference of
customers. These strategies will develop to satisfy customers of business market which overall
helps company in achieving competitive advantage from business market. Effective research will
also to be developed by company in producing their services among customers. Research will
help company in analyzing recent trends and demand in market which needs to developed for
generating maximum profit in organization.
CONCLUSION
From the above report, it is concluded that for developing business operations, travel
agents needs to develop recent mega-trend of the market which overall helps them in capturing
positive customers. In this report an analysis is done on sub sector as travel agent in which job
role of travel agent is explained. Critical analysis of Airbnd company is provided in which
explanation is given on mega-trend which adopted by company in improving its performance.
Further, this report provides a study of mega-trend and demand which is selected in company.
Selected mega-trend in this report is providing rented rooms and houses to travelers at
destination. Issues and their solution are also explained in this report in which recommendations
is provided to solve issues of company for developing effective trends of market. Therefore, it
can be concluded with this report that current and future trends needs to analyze by company for
developing effective business operations.
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REFERENCES
Books and Journals
Christodoulidou, N. and et.al., 2010. An examination of the transactional relationship between
online travel agencies, travel meta sites, and suppliers. Vol. 22 Issue: 7. pp.1048-1062.
Law, R., Leung, M., and RJames Wong., 2004. "The impact of the Internet on travel agencies.
Vol. 16 Issue: 2.pp.100-107.
Javier González-Soria, Moreno de la Santa., 2018 "The travel industry in 2018 – setting the
scene for the future. Vol. 10 Issue: 6. pp.712-716.
Magno, F., Cassia, F., and Bruni, A., 2017. Adoption and impact of marketing performance
assessment systems among travel agencies.Vol. 29 Issue: 4. pp.1133-1147.
Deng, S., Lawson, R. and Moutinho, L., 2000. "Travel agents’ attitudes towards automation and
the delivery of service. Vol. 12 Issue: 4 pp.60-72.
Online
Christoff, J.,2018. These Mega trends Will Shape Tomorrow's Travel Industry. [ONLINE].
Available through <https://www.travelpulse.com/news/features/these-megatrends-will-shape-
tomorrows-travel-industry.html>
Oladottir, H.M., 2017. Five Challenges Facing Tour Operators. [ONLINE]. Available through
<https://kaptio.com/blog/five-challenges-tour-operators-2017/>
Online Travel Market 2018-2023: Key Findings, Regional Study, Global Trends, Industry
Growth, Top Key Players Profiles and Future Prospects. 2018. [ONLINE]. Available through
<http://www.digitaljournal.com/pr/3877736>
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