Airbnb Quality Management: Problems, Analysis, and Recommendations

This report provides an in-depth analysis of the quality management issues faced by Airbnb, a leading hospitality company. It begins with an executive summary and introduction, followed by a detailed exploration of the concept of quality management, including its definition, evolution, and the contributions of quality gurus. The main body of the report outlines the problems currently experienced by Airbnb, drawing on customer reviews from platforms like Trustpilot to highlight issues such as fraud, booking cancellations, and ineffective management. Furthermore, the report assesses the impact of techniques like Key Performance Indicators (KPIs) in delivering consistent and effective quality management. The report also discusses the five dimensions of service quality (Reliability, Responsiveness, Assurance, Empathy, Tangibles) in the context of the issues faced by Airbnb. The report concludes with recommendations for Airbnb to improve its services and overall quality management, ensuring customer satisfaction and operational efficiency. The report includes references to relevant academic literature.

MANAGING QUALITY
IN HOSPITALITY,
TOURISM AND EVENTS

EXECUTIVE SUMMARY
This report provides an evaluation and analysis of the various problems encountered and
experienced by Airbnb organisation. A description about evolution of quality and quality gurus
are provided in order to describe the effectively describe the concept of quality management.
Further, an outline of various issues experienced by Airbnb organisation is provided on the basis
of reviews of customers so that an effective tool and technique can be adopted to address these
issues. Use of Key performance indicator (KPI) tool together with its advantages and
disadvantages is included in this report to assess its impact in delivering consistent and effective
quality management.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
2.0 Concept of Quality Management......................................................................................1
Outlining problems being currently experienced by Airbnb..................................................4
Assessment of impact of techniques in delivering consistent and effective quality management
................................................................................................................................................6
RECOMMENDATIONS.................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Quality is one of the most important and crucial element for an organisation that is
associated with developing a service or a product in a way that is quite suitable and align with
the intended purpose for which it was made. Moreover, quality also refers to presenting the
offerings without any flaw and in a perfect condition (Moutinho and Vargas-Sanchez, 2018).
Hence, in this context, the report below is based on Airbnb, which is one of the leading
community-driven hospitality company headquartered in San Francisco, California. The
company is currently facing several quality issues for which, the report would include
identification and description of concept of quality management, along with outlining the
problems being current experienced by the company. Moreover, the report would also be
emphasising on the impact of techniques such as KPI on he organisation, along with necessary
recommendation for Airbnb to improvise its services.
MAIN BODY
2.0 Concept of Quality Management
2.1. DEFINITION OF QUALITY
Quality refers to the standard of a product or a service that is produced by an individual
or organisation. Moreover, it is the interpretation of the state of the offering in comparison to
other aspects of similar kind. In addition to this, it is a distinctive attribute within a product or a
service of an organisation that is essential in order to provide value to individuals using these
products. It is a necessary aspect within an organisation that is associated with better and more
effective state of product possessed by individuals of an organisation.
2.2. Evolution of Quality Management:
Quality Management is a concept which is related to managing the overall effectiveness,
performance, as well as sustainability within the products and services developed and delivered
by the organisation. However, it is necessary that the evolution of the concept of quality is
appropriately and effectively explained.
1. Inspection: Earlier, the operative work within manufacturing of a product was
inspected within businesses. Moreover, this role enhanced as per the increase in
sizes of the company. However, due to inappropriate training and management,
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problems arose within inspection which led to development of a separate
divisions along with “Chief Inspectors”.
2. Quality Control: However, later with evaluation of quality control departments,
“Quality Control Managers” came into existence with a more effective insight in
terms of quality control engineering (Wong, Ji and Liu, 2018). Hence in 1920's
there were several statistical theories which were developed by theorists such as
Shewhart, who developed the first control chart, along with further development
by Deming. However, countries like Japan were constantly facing major quality
related issues for with the 1950-70 became the years of embedding the concept of
quality within their management practices. Hence, this embarked the formation of
the concept of
3. Total Quality Management: Within the west in 1980's, the concept of Total
Quality Management was formulated. As per this theory, organisations must
thrive to provide individuals with perfect and effective climate where people
within the company could develop their competencies, skills and effectiveness in
a continuous manner. Moreover, this environment must also contribute towards
continuous enhancement of quality within the existing products and services of
the company. The notion upon which this management works is that each firm
must effectively enhance the quality of offerings in a perfect and consistent
manner, through continuously evaluating the techniques, tools and equipment and
replacing the same with more appropriate and effective aspects.
2.3. Quality Gurus:
There have been prominent individuals throughout the evolution of Quality Management
who have provided an insight within how best an organisation could maintain the overall quality
of its offerings and processes. Hence, it becomes important that these “Quality Gurus” are
examined and analysed:
 Early 1950's
The very first theorists in this regard who delivered messages of quality to Japan was W
Edwards Demings. He provided a Plan, Do, Check, Act (PDCA) cycle. This is an improvement
methodology which is related to ongoing development, and check the effectiveness of processes
and lastly, acting upon the same (Sainaghi and Mauri, 2018).
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Illustration 1: PDCA Cycle
 Late 1950's
This was the era when theorists within Japan brought the message of quality back to
America. In this context, one of the prime contributors was Dr. Kaoru Ishikawa, who provided
the concept of organisation-wide quality control, which provided a more human intervention in
maintenance of quality (Luca, 2015). Moreover, he provided companies with several tools which
are showcased below:
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Illustration 2: Seven Basic Tools of Quality
(Source: What Are the Seven Basic Tools of Quality, 2020)
 1970's-1980's
This era was associated with Western Gurus taking up the concept of Quality
Management, within which, a prominent individual was Philip B Crosby, who provided concepts
of “Quality is Free” and “Zero Defects”. There are several absolutes of quality which he
provided for managers such as quality being conformance to requirements, prevention being the
key to quality, zero defect is the performance standard and measurement of quality is price of
non-conformance (Kolar and Čater, 2018). All these steps were major contributors within the
quality for product development.
Outlining problems being currently experienced by Airbnb
Airbnb is one of the most recognised organisations in the hospitality industry which has
global operations and several facilities within at a worldwide reach (Lu, Chen and Law, 2018).
However, the firm has severe quality issues which are recently being communicated and are
being highlighted by the customers on several travel blogs and websites.
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Hence, in order to highlight the issues associated with Airbnb and its quality, below are
several reviews that the firm received on review website by the name of Trustpilot:
 A million of holidaymakers had fallen victim to fraud on Airbnb on account of lack of
proper security measures and scourge of fraudsters using website of Airbnb to dupe
holidaymaker and sending money to some scamp accounts.
 Airbnb is accused of being cancelling around 1.1 million bookings at last minute that has
lead to troubles for holidaymakers and leave their customers on streets of unfamiliar city
with no proper place to stay (Airbnb, 2020).
 Apart from this, every four of five customers of Airbnb has claimed that they had a bad
experience on the basis of unhelpful act of management of Airbnb and rude and failed
behaviour at the time of refund of money to customers.
On the basis of above reviews, it can be outline that currently following problems and
issues are faced by Airbnb organisation:
Ineffective management- The first and foremost issues that is faced by Airbnb is
associated with having an effective management that is not able to properly mange and
coordinate the demand and supply of its services and therefore, has been accused of cancelling
more than 1.1 million billion booking at last time (Kasemsap, 2018). Beside this, the
management of Airbnb organisation is also unable top provide required help to its customers and
often rude and failed to make timely repayment of money to customers. Therefore, it can be
outline on the basis of reviews made on Trustpilot that the Airbnb organisation is currently
experiencing a problem of ineffective management.
Lack of proper security measures- The another problem encountered by Airbnb
organisation is related with lack of proper security measures due to which it has faced
consequences of providing unreliable services and scourge of fraudsters through making use of
website of this organisation in order to send cash of many customers and holidaymakers into
scam accounts. As a result, almost a million of holidaymakers had fallen victim to fraud on
Airbnb because of lack of proper security manures and check over use of its website (Van der
Wagen and White, 2018).
Airbnb is a dealing in a service sector so it should fulfil the requirements of dimension of
Service quality which is not properly done and meet by this organisation. A rationale review of
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dimension of service quality in context of issues and problems experienced by Airbnb on the
basis of reviews of customers on Trustpilot are as follows:
Reliability- This dimension of service quality is related with the ability of organisation in
fulfilling and providing the services promised in an accurate and effective way. It has been
analysed from the reviews of customers that Airbnb is accused of cancelling many of its booking
at last time thus, this organisation is not bale to fulfil this dimension of service quality as it has
failed in providing the desired the services to its customers.
Responsiveness- This dimension is basically associated with the willingness of providing
desired help and prompt services to customers and also includes the time taken by organisation
in providing services and solving queries and problems of customers. The review of customers
on Trustpilot has shown that every four of five customer has found that the management of
Airbnb is unwilling and failed in providing required help and timely solving the queries of
customers (Getz, 2019). Also a rude and inappropriate behaviour is also faced by customers at
the time of making refund of their money by Airbnb thus, it can be reviewed that this
organisation is also failed in fulfilling responsiveness dimension of service quality.
Assurance- This factor of service quality is related with creation of a feeling of trust and
confidence in customers regarding the certainty and ability of organisation in providing best
possible services to its customers to have better customer loyalty. The unhelpful nature of
management together with lack of security measures has broken the trust and confidences of
customers on Airbnb organisation thus, it does not meet the dimension of assurance of service
quality.
Empathy- This dimension of service quality measure is associated with the providing
caring and full attentions to needs and requirements of customers to satisfy the desire of
consumers in a best possible way (Andrades and Dimanche, 2019). The reviews of customers
about Airbnb organisation has shown that it has cancelled booking for almost 1.1 million of
customers and left them on some unfamiliar locations without any adequate facilities and home
to stays thus, Airbnb has failed in providing due caring and attention to its customers therefore
this requirement of empathy is also not meet by Airbnb organisation.
Tangibles- As the services provided by an organisation are intangible in nature thus, the
experience and comfort availed by the customers and the associated facilitates are the only
tangibles that makes an organisation better than its competitors. The reviews of customers of
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Airbnb on Trustpilot has shown that its costumers availed bad experience and also faces many
issues related with lack of security measures and last minute cancellation of booking therefore,
this dimension of tangibles and better facilities is also not meet by Airbnb.
Assessment of impact of techniques in delivering consistent and effective quality management
Definition of KPI
KPI is tool that is used by an organisation to have a quantifiable check on performance of
its employees through prober analysis of efficiency and success of organisation to enhance
overall performance of organisation over time through directing it towards achievement of goals
it is necessary to use various techniques like Key performance indicator are made by
organisation in order to deliver consistent and effective quality management to offer and provide
better services and facilities to its customers. (Olsen and Trono, 2018). Use of KPI technique by
Airbnb organisation facilitates following advantages and disadvantages for this organisation in
terms of delivering consistent and effective quality management.
Advantages Disadvantages
The biggest advantage of KPI tool is that it
lead to increase in productivity and
performance of individuals and team in Airbnb
through keeping a close check and monitoring
on their performance and efficiency. Beside
this, use of various perks and rewards are also
made under KPI technique to top performers of
organisation which motivate all employees for
better productivity and performance in order to
get better benefits.
The use of KPI tool can lead to conflicts at
workplace as any negative commitment in the
process can distract the whole metrics and
moral of employees that lead to negative
mindset in organisation. Bede this, here more
emphasis is given on individual performance
and efficiency instead of meeting and
achieving a highest level of performance by
overall organisation therefore limit the scope
the performance and efficiency (Lee, Kim and
Kang, 2019).
Specific Example of benefit of application of KPI:
Thus, use of KPI techniques facilitates a better control and check on the activity of
management and lead to enhancement of their performance through making timely comparison
of their actual performance with desired level so that corrective action can be taken on time to
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fulfil the performance gap and desired services and facilitates can be easily provided to
customers without any case of cancellation of booking or any other inefficiency in management.
Beside this, use of KPI also facilitates a better monitor and control over its security measures
which help Airbnb organisation in eliminating the scourge of fraudsters while using its website
and provide a check and control over sending cash of holidaymakers in some scam accounts
through better provisions of security (Moutinho and Vargas-Sanchez, 2018).
Therefore, its usage meet and address both the problem of Airbnb associated with
inefficient management and lack of security measures therefore, deliver a consistent and
effective quality management through keeping a check and control over performance of its
employees and business operations. Use of KPI makes management and employee more efficient
through providing timely training and learning programs in the basis of their performance
therefore, makes them able to properly coordinate and manage the services and facilitates
provided to customers and also ensure improvement in facilities and security measures (Wong, Ji
and Liu, 2018).
RECOMMENDATIONS
Total quality management is a concept that is associated with a long term success of
organisation through continuous improvement and customer satisfaction approach (BASIC
CONCEPTS OF TOTAL QUALITY MANAGEMENT, 2013). The main focus of TQM approach
is on meeting customers expectation, identifying problems, leading and building commitment
and promoting a open and factual decision making among workers and employees of an
organisation. Use and effective implementations of following concept of TQM approach are
recommended for Airbnb to address and solve problems identified within this organisation:
 A committed and involved management is recommended for Airbnb form top to bottom
to ensure proper compliance of quality improvement program in the organisation in order
to provide better services and resolution of queries of customers on time and ensure a
more effective and helpful management for Airbnb to address the problem of inefficient
management faced by this organisation. Timely training and learning programs can also
be provided to employees and mangers of Airbnb to have more competent and skilled
management.
 Use of a customers focused concept is also recommended for Airbnb organisation in
order to coordinated all its efforts and activities in one direction of providing maximum
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satisfaction and best possible facilitates to its customers to achieve its targets of better
productivity and profitability.
 Continuous improvement of business processes and establishment of better performance
measures together with involvement of entire workforce is also recommended for Airbnb
in order to solve its issues of lack of proper security measures. A continuous
improvement in process facilitates adoption and implementation of better technology,
control and security measure to Airbnb to offer a secure and safe website to its customers
which safeguards it from fraudulent activity.
CONCLUSION
Thus, it is concluded from the report above, that managing quality in hospitality, tourism
and events is very important for organisations to ensure provision of effective products and
services as per the desired expectations of customers. Consideration of evolution of quality and
quality gurus while describing the concept of quality management is important as it helps in
determining how this concept has introduced and evolved effectively. Moreover, determining
problems through using customer feedbacks enables in providing an insight to the specific issues
which the organisation is facing on several fronts. Lastly, it is necessary that advantages and
disadvantages associated with technique like Key performance indicator (KPI) is necessary to
ensure the most prominent impact which these would be having on the firm.
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