Airbnb: Analysis of Quality Issues and Improvement Strategies Report

This report examines the quality and customer service issues faced by Airbnb, a prominent player in the hospitality industry. The report begins with an executive summary and then delves into the problems Airbnb is currently experiencing, including inefficient management, lost connections with potential clients, and poor customer service. The analysis further explores the extent to which Airbnb possesses the capabilities and competences needed to improve service quality. The report also discusses the impact of two key techniques, benchmarking and Kaizen, on Airbnb's operations, highlighting their potential benefits and drawbacks. The report concludes with recommendations for Airbnb to enhance its service quality, customer satisfaction, and overall competitiveness in the market. The report is a comprehensive analysis of Airbnb's challenges and opportunities, offering valuable insights for business development and quality management.

Managing Quality
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Executive Summary
Holidaymakers plan their trip properly and wants to gain maximum satisfaction from the
funds they invest. It is important that they are provided with the required level of importance so
that their interest with a particular accommodation service provider can be maintained. Airbub
dealing in same sector and is helping travellers with the lodging facilities. In recent time it is
observed that it is not performing to the desired level and customers are not happy with its
services. reason behind same and how it can be improved will be discussed in the following
report.
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Contents
Executive Summary.........................................................................................................................2
Contents...........................................................................................................................................3
INTRODUCTION...........................................................................................................................4
TASK ONE......................................................................................................................................4
Problems being currently experienced by Airbnb..................................................................4
TASK 2............................................................................................................................................6
What extent Airbnb has the right capabilities and competences to improve the quality.......6
TASK 3............................................................................................................................................7
Impact that two of the following techniques could have on Airbnb......................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Today the trends have changed and with the increase in resources people prefer to travel
more from one place to another. In order to do same people, require lodging and other transport
facilities so that they can enjoy their stay at new place. It is important that whichever
entrepreneur is dealing in hospitality sector performs his duty with full dedication and
responsibility so that no compromise with security and entertainment to service users is done. As
there is so much demand in this industry it becomes difficult for the hospitality industry dealers
to maintain same level of efficiency for all its customers (Boniface, 2013). Airbnb is privately
held enterprise which was established in 2008 by Brain Cheskey. Jeo Gebbia and Nathan
Blecharczyk. It is doing well in hospitality industry but later due to rise in demand it came across
few negative reverts from customer due to which it needs to review its operations efficiency. The
following report will talk about the different issues that are faced by this enterprise recently and
how it can overcome same.
TASK ONE
Problems being currently experienced by Airbnb
There is a tough competition in hospitality industry as there are number of competitors who
are providing their best service to customers. It is very much crucial that proper attention is given
to demand of customers so that their satisfaction level can be raised. When holiday makers plan
to travel they expect that they receive good experience as a good amount is paid by them. For the
services offered by the agents arranging holiday packages. Airbnb is an online place which
provide the facility of accommodation to people who are travelling from one place to another
and need the lodging facilities (Bell and et.al., 2012). The referred enterprise is helping the
different users to get economic services which can help them in having good stay at new place at
reduced prices. In recent years the referred enterprise has experienced a negative response from
its customers due to the negligence shown by the staff members and a careless attitude towards
customers. It was canceling the orders of various service users at last moments which created a
very negative image among the different users. They were very annoyed by this and found that
the organization is not at all concern with the emotions of travelers that are associated with their
holiday plan. Continuous cancellations were done by the firm without showing any concern
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which further added more grievances towards brand. This way Airbnb has to face the following
problems currently –
Inefficient management – It was found that there is a lack of administration among the
employees of the refer firm as they were in capable of handling orders that they were receiving.
Refunds to customers were made without any guilty which further added more problems for the
firm. Negative reviews were given online by the customers whose orders were canceled on the
last moments. It can effect total sales for brand in long run though it does not affect the profit
margins of present sales (Adamczyk and et.al., 2012).
Lost connections with potential clients – Prior bookings are done by clients in order to
avoid unconvinced at the last moments. It is for their safe and secure trip but when they found
out that their bookings have been canceled at the very last moment it gives a very negative image
about the company name and hence people stop trusting it for their future plans.
Meeting the excess demand – Due to excessive increase in the customer needs for external
recreation activities more and more demand is made for accommodation. It raises pressure on the
hospitality sector to manage the same that too at economic prices. Therefore, it has become
another problem for the refer enterprise.
Poor reviews on Trust pilot – These days’ clients are very much aware about their rights
and are more cautious with the choice of service providers. Before selecting a particular name, it
first compares it others and then make decision. Social media and trust pilot is one of the major
tool at which ratings are checked that how good a particular enterprise is in giving its services.
After the negative experience of a number of customers so many negative reviews were posted
on sites which has an adverse effect in the brand name.
Awful customer service – According to the reviews of customers it was found that Airbub
refused to take the accountability in case of any unconvinced faced by clients on reaching the
place which has been booked for them. They do not take the responsibility and clearly made it is
a fault of client that why they opted for a cheap place (Kabanov and et.al., 2013).
Atrocious new websites – Another problem which has been faced by the customers of
referred brand is of the awful site developed which was not at all appreciated by the clients and
they said that the already existing one was way better. It raises pressure on brand on marinating it
simple so that it can be easily used by all and hence increases the connection between costumes
and brand.
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No responsibility of accommodation location – There are places which are not safe to live
and are prone to criminal activities. It is a basic duty of the service providers to ensure that a safe
location is chosen so that the security of tourists is maintained. In customers reviews it was
found that people were given suggestions of places which were having criminal records and
hence put therefore of people in danger (Basu, 2017).
TASK 2
What extent Airbnb has the right capabilities and competences to improve the quality
In order to improve the quality of services Airbub can work on different areas which are
directly associated with the development of effectiveness in operations. The following areas are
discussed in detail through which the referred enterprise can improve its capabilities abd
competency:
Better communication with clients – In order to avoid the last minute cancellations it is
important that effective interaction and timely delivery of message is done so that the effect of
non accomplishment by the organization can be reduced. If holiday makers are informed on time
they can make further arrangements for themselves.
Increase efficiency on taking responsibility – It is very crucial that that the employees of
the refers institute act more responsible and handle the customer related departments with more
serenity. As no concern is given to the cancellations it has to be reduced and priority of clients
should be maintained so that they do not find difficulty.
Prior survey of place – Whenever any place is suggested to the the client or is booked for
their accommodation it should be checked on the grounds of safety. It is of prior concern as
when a client book a place through a agent they feel it safe and very few people check it on their
own (Sarkar and Haddad, 2016).
Increase in accountability – Tourism sector is totally depended on customer and therefore
they are answerable to whatever services they are provided. It is important that whenever any in
convince is made to client because of the company proper apology is made with refund and some
benefit is given on next bookings.
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TASK 3
Impact that two of the following techniques could have on Airbnb
From the task one this has been identified that the referred organization is going through a
very tough management although it is doing financially good. It needs to take corrective actions
so that the customer satisfaction level an raised back to normal level and hence good connections
can be developed. It was found that the users of this brand are not happy with its services and
needs to be provided with better experience so that the companies name can be brought back to
same level. In order to do same Airbub can use two very effective strategies which can help in
accomplishing the targets to a great extent (Kim Kim and Shim, 2012). Benchmark and Kaizen
are the two strategies which can be used in order to bring improvements in present scale of
operations. Like any other code of conduct it also has some positives and negatives which are
discussed below:
Bench marking – It is process of observing at a particular organization of same field and
its execution measurements to bests and best practices from different organizations. In venture
administration this concept can likewise bolster the choice, arrangements and competition of
work given. Areas that are commonly estimated are value, time duration and price. During the
time spent best work on bench marking, administration distinguishes the best firms in their
industry, or other organization where comparative procedures are present, and thinks about the
outcomes and procedures of those concentrated to one's own particular outcomes and procedures.
Along these lines, they figure out how well the objectives perform and, all the more
imperatively, the business forms that clarify why these organizations are effective. As per
National Council on Measurement in Education, standards evaluations are little appraisal which
are utilized by enterprises to achieve success. Airbub is facing much difficulty in meeting the
demand of its customers and therefore can use the same concept in achieving improvements
(Hassan and et. al., 2012). The same concept can help Airbub in delivering quality services and
management in the following manner:
Set targets – When the process of bench marking is adopted it helps in establishing a
common goal for whole enterprise. Everyone gets to know that they have to achieve the given
target in the allotted time period which further increase their accountability and hence raise the
overall performance.
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Reduce wastage – when standards are set against the provided resources employees does
better utilization of same and take the full capacity utilization of same it reduces cost of
operations and can help Airbub in maintain the minimum cost of operations.
Increase competitive advantage – With the same concept referred enterprise can further
improve its competency and can give a tough competition to its competitors which is very
important in hospitality industry.
Though this concept has a number of positive results it too has disadvantages as it
restricts the capacity of the firm to grow further. Everyone in the firm work to achieve the
standards set and in case if they have more skills they do not invest them and limits their work to
the requirements. Apart from this it can also demotivate the work force in case of non-
achievements of targets. It is important that when standards are set same resources are also made
available as only than the bench marked quality can be achieved (Majchrzak and et.al., 2014).
Kaizen – This is another technique to grow. It is implied at the work place to experience
overall growth in business. It is effective for all the levels of organization be it managerial or
operation staff. It can again help much Airbub in improving its present scale of efficiency as
effective control is kept on every department be it purchasing selling or any other. A continuous
cycle can be implemented in the referred enterprise and desired outcomes can be achieved.
Identify opportunity - It starts with recognizing the opportunity present in the business
like identifying the actual demand of customers at a particular point of time.
Analyze the process – This is the next step at which the organization go through all its
processes in order to bring improvements in each. As the referred enterprise is facing many
problems in maintaining coordination with its customer it needs to rework on its different
process. By doing so it can improve customer relationship which has become very important for
it to deal with its various issues.
Develop optimal solution – this is another step though which effective measure to
different problems is recognized so that the overall performance can be made better and the
shortfalls of the firm can be reduced. It is important that the flaws are removed from Airbub as it
will have a positive impact on its future performance.
Implement the solution – this is the next step at which answers to the different problems
identified are presented so that they can be implemented and hence overall growth in operations
is experienced (Mohsin and Kamal, 2012).
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Study the result – Once the implementation of different solutions is done the outcomes of
same are recorded. Through this it is identified that how far the adopted measures are successful
in giving desired results. If not than the gap is identified and reasons behind same are identified.
Standardize the solution – Once the appropriate solution is found it is adopted at all the
different departments so that improvements in same can be observed. It further also helps in
improving the quality of services for Airbub and the grievances of clients can be solved to a
great extent.
Plan for future – After observing improvements in distinct sectors of business
arrangements for further growth can be done as this will help in the growth of business.
By adopting the above tow techniques the referred institute can create a better working
place and can lead towards establishing a better brand image in the market. It will help in the
overall development of business and will assure that no inconvenient is made to the clients (Li,
Krishnamurthi and Savoor, 2014).
CONCLUSION
From the above report this has been summarized that Airbub has faced a challenge of
marinating its commitment towards the customers. Due to same the holidaymakers has faced
much inconvenience and has given many negative reviews on trutboard. This way it has become
important for the firm to work on its distinct departments so that improvements can be made in
operations. Kaizen and Bench marking are two important concepts that can be adopted by
Airbub to bring a positive move and help customer to have a better experience. Lastly it is
important that implementation of the discussed process is done so that brand goodwill is
maintained in the long run.
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REFERENCES
Books and Journals
Boniface, P., 2013.Managing quality cultural tourism. Routledge.
Bell, D., Wilson, G., Mcbride, P. and Cairns, N., 2012.Managing quality. Routledge.
Adamczyk, M., Anschutz, T.A., Shrum Jr, E.V., and et.al., 2012.Managing quality of service in
a communication network for applications. U.S. Patent 8,089,986.
Kabanov, A., Zarafyants, A., Bauer, A.L., and et.al., 2013.Managing quality testing. U.S. Patent
8.539.282.
Basu, R., 2017. Managing Quality in Projects. Routledge.
Sarkar, N. and Haddad, B., SANDVINE Inc ULC, 2016.Systems and methods for managing
quality of service. U.S. Patent 9.264.942.
Kim, K.B., Kim, S.K. and Shim, J.J., Samsung Electronics Co Ltd, 2012. Apparatus and method
for managing quality of service of service flow in wireless communication system. U.S.
Patent 8.194.540.
Hassan, J.A., Hassan, M., Das, and et. al.,2012. Managing quality of experience for wireless
VOIP using noncooperative games.IEEE Journal on Selected Areas in Communications.
30(7), pp.1193-1204.
Majchrzak, A., Rice, R., King, N., and et.al., 2014. Computer-mediated inter-organizational
knowledge-sharing: Insights from a virtual team innovating using a collaborative tool.
Mohsin, M. and Kamal, M.A., 2012. Managing quality higher education in Bangladesh: Lessons
from the Singaporean and Malaysian strategies and reforms. International Journal of
Business and Management.7(20), p.59.
Li, Z., Krishnamurthi, G. and Savoor, R., AT&T Intellectual Property I LP. 2014. Method and
apparatus for managing quality of service for multimedia applications. U.S. Patent
8.824.453.
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