Airbnb: A Case Study on Stakeholder Retention Post-COVID-19 Pandemic

This case study analyzes the challenges faced by Airbnb in retaining stakeholders amidst the COVID-19 pandemic. The travel industry experienced significant disruptions due to travel restrictions and reduced rental demand, impacting Airbnb's performance. The primary challenge identified is stakeholder retention, hindering collaborative efforts with other travel operators and resulting in negative consumer behavior. The report explores the need for stakeholder retention, the consequences of the pandemic on Airbnb's revenue, and effective strategies for stakeholder re-engagement to ensure long-term survival and success. It assesses Airbnb's current scenario, offering alternative solutions to address the identified issues and problems, emphasizing the importance of consumer demands and choices for achieving market success. The study draws on literature reviews and various sources to provide a comprehensive analysis and strategic recommendations for overcoming the challenges faced by Airbnb.

Integrated Case Study
Analysis

EXECUTIVE SUMMARY
The report will deal with the detailed analysis of the identification of challenges
and concerns by the organization in break of Covid 19 pandemic. Travel
industry has been facing high impact because of the influences of the pandemic.
Many limitations were ordered for travelling and rental spaces for entertainment
and fun which has impacted the Airbnb performance on as signifiant level. It
has been found out that the main problem for the organization is the “stake
hold retention” due to that they are were not in a position to draw deliberative
collaborations with other travel and tourism operators which have create an
interval in the operations. Consumers have also shown negative practices which
had restricted the development and growth of the company in the present time.
Therefore, the project will highlight the imperative recommendations for
attaining the level of success in the market place by focusing on the consumers
demands and choice effectively and efficiently.

Table of Contents
INTRODUCTION ...........................................................................................................................................4
....................................................................................................................................................................5
The situation of the analysis. ..................................................................................................................5
The scrutiny of the need of retention of the respective stakeholders of Airbnb.....................6
The identification of the consequences of the pandemic over the generation of revenue of Airbnb.
................................................................................................................................................6
The examination of the effectual plan of action for the readmittance of the stakeholders for the
achievement of the success ratio for the long term survival of Airbnb...................................7
Assessment of the present scenario considering the functioning of Airbnb............................................7
Classification of the analysis along with ideas of generation and alternatives solutions which is best fit
for the issues and problems..................................................................................................................11
CONCLUSION.............................................................................................................................................13
REFERENCES..............................................................................................................................................14

INTRODUCTION
The project aims to examine the Covid 19 impact in retention of stakeholders for getting
success of the organization. The situation of the pandemic was the most drastic conditions for all
the commercial enterprises which have had decreased the business operations because of the
uncertainness prevailing in the market. The project is going to mention about the effect of Covid
19 pandemic on the functioning and the operations of the Airbnb which has been growing since
2008 in the tourism and hospitality industry. The organization gives the chance to the respective
owners of houses, for renting the weekend property for the ones who wants to stay at that
particular destination at affordable rates (Cao and et. al., 2022). The organization has been
performing excellently in industry before independence making but as of now issues are arising
of low growth in profitability which is affecting the retention of stakeholders. The project will
thereby study about how the organisation, Airbnb have been facing difficulties in the Covid 19
pandemic time. Also the discussion on different literature reviews and sources for gaining
effective information of the organization's performance. Proper recommendations and strategies
will thereby be stated in the project for over-coming the challenges that are being faced by
organization.
The prospective Aims of the study: For analysing how Covid 19 pandemic has affected in
retention of stake holders for success of company. The relative Case study will be upon the
functioning of the Airbnb.
The primary objectives of the study are:
 The conduction of the analysis for analysing the needs of retaining of stake holders for
the Airbnb success.
 For the identification of the consequences of Covid 19 pandemic over the deliration of
revenue of Airbnb.
 For analyzing the effectual plan of action for stake holder's possession for the attainment
of desired standards of Airbnb for the assurance of long term survival in the market.

MAIN BODY
The situation of the analysis.
This case study revolves around the company, Airbnb which is a service oriented
establishment that offers the relevant property owners to rent their houses and properties to the
outsider people and travelers who are in search of places of staying in the particular area where
the owners possess a vacant property (Cheng, Houge Mackenzie and Degarege, 2022). The
organization was incorporated in the year 2008 in California,United States. The founders of the
company were 2 friends Gebbia and Chesky, who have had studied in same college and has an
urge and a deliberation to start their own respective business due to the problems faced by them
in regards to the payment of rent. The company provides services to its stake holders, guest,
host, communities, workers and shareholders by rendering the support of comfortable stay in
separated space without any scope of distractions
They made use of the the online platforms and the operational sites for marketing the business
which was very innovative at that point of time. They experienced high growth in the business in
the year 2010 and 2011 as people used Airbnb for booking which was increased by 8% rate.
Then the organization expanded the business in global market places and have covered 89
nations in the business of rental spaces. Now, they have their own application which can be used
by the customers and make the booking according to their personal specifications and needs.
In spite of the popularity and the improvement in the success ratio, they long-faced certain
difficulties and challenges in their business as many of the guests damaged the properties and
rental houses which contributed towards the promotion of negative reviews over the website.
Then came the situation of the pandemic, which stoked hard and led to the reduction in the
generation of revenue and affected the profits due to the lock down that was imposed by the
government which badly influenced the positioning and the functioning of the company. The
imposition of lock down and various other restrictions resulted in the increase in the
unemployment rates for the ones working in Airbnb (de Janasz and et. al., 2022). The pandemic
transformed the minds and the ideologies of the travelers as they tried to opt for a stay at a hotel
rather that to choose the Airbnb property due to the antithetic norms and guidelines. The closing

down of the historical places,amusement parks,sports events and cinemas furthermore lead to the
failure which was one of the negative facet for Airbnb.
The evidence in regards to the contemplation of the problem through the review of literature.
The scrutiny of the need of retention of the respective stakeholders of Airbnb.
According to (Oskam, 2022), stakeholders are the important people for the company
which monitors,controls and invests the efforts and time for the reattainment of trust in the
organization for long period of time. The company such as Airbnb have significant markets
share and growth in revenue because of the innovative idea of giving rental spaces facilities for
finding houses and destinations for consumers. Stake holders of the organization including
guests,hosts,workers,communities and investors who are the main pillars of success of the
company. Organization has got two billion dollars as investment for short term even before the
time of pen which have some how managing for performance of theirs operations. The loans
were sanctioned through the investors and stakeholders who believed in getting decent returns as
the organization had effective mission and vision for the aim of long term. The stake holders
must need to be happy and retained as the organization can function by building the
configuration and trust. Airbnb is facing the retaining of consumers problems and stake holders
as they are not focusing on giving good facilities on sites and quality on sites. It was found out
that the consumers had damaged the homes and rental spaces resulting in negative effect on
Airbnb. The organization is lacking the guidance of experts and containers aiming for
maintaining good environment for neighbouring properties which is the main challenge
The identification of the consequences of the pandemic over the generation of revenue of
Airbnb.
According to (Valente and et. al., 2022), Covid 19 pandemic has come up with many up
and down for hospitality and tourism industry. The organization Airbnb has adverse effect of
lock down restrictions on consumers travelling and booking and giving rental facilities to
travellers. The organization have slow down the growth in tourism industry as all the business
operations were shut down because of closing of resorts, hotels and destinations of travelling.
The organization was been able to pay the returns on investment to the investors and
stakeholders as the capitalism has gone down and they are facing issues in trust building and

confidentiality between them. Many business operations have get failed because of the
misconduct of consumers by property damage and solution finding for getting it without
payment of any rent fees. The Covid 19 pandemic resulted in inflation in the whole economy
which has lessen the purchasing power and because of it the stake holders were not been able to
contribute in the success of organization. By this effect of low capitalism Airbnb is not
effectively been able to provide the better services and collaborative website relations and
various other use of technology.
The examination of the effectual plan of action for the readmittance of the stakeholders for
the achievement of the success ratio for the long term survival of Airbnb.
According to (Wilson, Garay-Tamajon and Morales-Perez, 2022), it has been found out
that the stake holders are the important partner of business which need to be retained and
satisfied for success of the organization in long term. So it is compulsory for making proper
strategies for improving consumer engagement and participation of stake holders. It can be done
by safety regulating precautions in all the properties of rent provided by Airbnb on the site. The
organization needs constant promotions after the pandemic of COVID 19 for attracting
consumers from various locations for improving its share in the market place. Airbnb needs to
maintain good relations with stake holders such as suppliers,consumers and investors which are
the main pillars for increasing potential of organization.
Assessment of the present scenario considering the functioning of Airbnb.
The business idea of Airbnb was very innovative which has generated great sales in a
short time period by attracting huge number from whole world. It gives platform to different
organizations for marketing the properties and advertisement in innovative and attractive
manner. Different traveling agencies which uses websites for promoting the properties like Trip
Advisor and Booking.com uses platform of Airbnb for renting the houses and spaces to peoples
or bunch of people. By this way the online agencies foe traveling may reduce the power of
bargaining of consumers and establishing positive image of the hotels. The different problems
faced by Airbnb are-
 Because of the situation pandemic the online agencies for traveling have seen the down
fall in the revenue and numbers of guests which come to the hotels and properties by
Airbnb. It directly impacts the sales generation and profits of Airbnb which affects the

operations of business. The traveling agencies facing these challenges such as payment of
daily bill, payments of mortgage and giving salaries to employees. It has become tough
situation for Airbnb as many people are canceling their trips and traveling which is
impacting negatively the business operations (Zekan and Gunter, 2022). For maintaining
the image of properties host will have to return the amount to consumers which will
affect the reserves of cash. It will become difficult for host and Airbnb for following the
guidelines for maintaining the profits which is a negative factor
 If individuals felt unsafe while booking from Airbin at the time of COVID 19 pandemic
period over different kind of health and safety reasons. In the month of June, July the
revenue decreases with 40% and has been recorded over cancellation and perceptual
experiences over customers (Chen, and et, al., 2020). Individuals works for Airbin has
faced challenges for making survival possible with basic salaries of employee. The
market value has been decreasing and shareholders are not been able to afford over shares
within an organization making faith to be lost. In this stakeholders have been joining
Airbin by terminating upon its agreements and making operations related to profit
earning conducted more effectively.
 The snap shots of residences may also provide incorrect concept to customers because the
damages created bys preceding customers ensuing in much less customers. Maintaining
the belongings is a prime task confronted via way of means of hosts as it offers round
35% income annually. Individuals left the trash and wastes in belongings and disturb the
regions close by that's a bad factor(Gerwe, 2021). Poor hospitality influences the
interleaving revel in of customers developing bad impact on photograph of Airbnb.
Consumers do now no longer pay the more expenses for offerings of hospitality that's
essential for retaining the easy surroundings in belongings. Illicit sports of customers and
damages of belongings is the mains task for Airbnb as man or woman adjustments the
questioning because of those factors. This is difficult to manipulate wholesome family
members with the stakeholders of Airbnb, due to the fact they perform chain of lodge
however do not pay taxes like different residences. They do collaboration with different
hosts however right taxation formalities have been now no longer well accompanied via
way of means of them which creates bad photograph of Airbnb.

 The stakeholders have been majorly worried in enterprise enlargement due to monetary
guide and advertising of brand. Maintains excellent relation with host and stakeholders
facilitates in accomplishing one of a kind aggressive benefit that's obligatory to manage
up in numerous hassle and challenges. Rise in competition who offer comparable carrier
will will become vital trouble in running of Airbnb. The regulations and approach should
created via way of means of them which facilitates them competing with different
competition so the huge quantity of competition could be interested in them in powerful
manner. The neighbourhood hosts is the power of Airbnb who paintings with them and
guide them for starting up easy running. Because of a few motives if the host fails to
fulfil the visitors will lower the profitability(Godovykh, and et, al., 2022). The humans
wrote bad remarks on social media for Airbnb which have an effect on the bookings.
Some visitors have been unnecessarily worrying which happens excessive expenses with
inside the hospitality and offerings that's to be beard via belongings. This have many
troubles that's confronted at some point of take a look at inside and outside of clients with
a purpose to growth time of ready of the clients who're in queue for stay. Unusual
emergency could be confronted via way of means of the host because of a few technical
mistakes in connection of net and energy outage which influences revel in of travel.
Pestle analysis- This is an important tool which is used for making evaluation of external
business environment done over industry which allows organization form impression over
factors that has been effecting business.
 Political factors- Company holds uniqueness within business which is used over renting
of home for strangers. In certain locations organization has faced various legal issues
over renting space and does not follow laws and regulations that is based upon housing.
 Economic factors- Airbnb is an leading sharing economy over resources within
corporations and persons. This made competition over models and hotels which offers
less expensive alternative making renting possible.

 Social factors- Airbnb has been offering upon exchanging of money to its guests with
visitors and review making growth of organization done effectively. Reviews has been
making organization discuss about services over gaining growth within business.
 Technological factors- Company makes organization develop high technology over
guests books rooms and website. The online portals over medium making guests will
share reviews and bad review defining about business organization.
 Legal factors- Company has been facing legal problems that has been complying with
housing regulations. This makes legal issues within an organization follow aspects related
to taxation and tourism rule.
 Environmental factors- Company boasts the reduction of usage of energy in Europe and
America in comparison to hotels by lowing down the green house gases,less consumption
of water and waste avoidance.
Swot analysis- The model is based upon making strategic planning and management that has
been used over making identification of factors impacting business environment.(ossen and
Reck, 2021).
STRENGHTS WEAKNESSES
 Airbnb is know for having positive
brand image within the sector of
operations.
 This has been offering alternatives over
comparisons done within hotel.
 Poor hosting has been damaging image
of an organization which has been
following guidelines within an
organization.
 Organizations has been criticizing over
high prices for staying.
OPPORTUINITY THREATS
 Organization has been expanding
business within emerging market
 There is high competition in this sector
as new companies are entering in this

having less competition.
 Organization has developed business
making emerging market with less
competition achieved.
 Organization has been developing
more advance app that leads upon
connecting and hosting of guests.
industry.
 Company is facing many legal issues
in many nations for the violation of
laws.
Classification of the analysis along with ideas of generation and alternatives solutions which is
best fit for the issues and problems
This have many issues confronted via way of means of Airbnb with inside the running
which decreases the technology of sales on everyday basis(Jiang,, and et, al., 2022). This could
be very vital for conquer the demanding situations to get manipulate at the massive marketplace
area. Airbnb is an particular concept which fulfil want of the focused clients who beautify the
revel in of travel. They face many trouble for coping with the stockholders which fulfils the
taxation standards. Because of Covid 19 pandemic the running is affected on massive scale and
that is being have an effect on with the situations. Airbnb have enforced many answer for
conquer the trouble in diverse components that's referred to below- Airbnb guarantees the
compliance in complete and powerful protection rules which help them to manage up with the
impact of COVID 19. earlier than sports of overall performance and advertising in appearing this
may alter every and each coverage and tenet for homes which fulfil COVID 19 pandemic
necessities. This is obligatory to observe the rules, law and regulation which creates and
formulates the authorities of a rustic for to extrude notion of people.
The hosts and homes will fulfil the standards for preserving social distancing and masks is
obligatory with inside the infrastructure and that they should hold degree of hygiene which
facilitates in improve the reserving via way of means of attracting clients. They will hold suitable
inventory of system for safety like sanitizer, masks, gloves and drugs so the clients will now no
longer face any problem in locating essentials. Good relation upkeep with the stakeholders and
chain of deliver will assist Airbnb for attaining the objectives in higher manner. They will create

and make plan of contingency with a view to bring about excessive degree of provider presenting
to clients. The stakeholder collaborates with Airbnb to turn out to be the host so the massive
marketplace could be received via way of means of presenting the provider and call for that's
required to clients (Kourtit,and et, al., 2022). As in line with the necessities the host will alter and
customize the offerings which facilitates in engagement of clients from all of the global in quick
duration of time. They should attention on upkeep of right infrastructure which seems
presentable in actual existence in addition to in pix additionally in order that they fulfil the
clients expectations. All of the formalities and taxation regulations of presidency should be fulfil.
So, they may assist the running as in line with the tendencies of contemporary marketplace. The
property and homes should be legally time-honoured through the authorities with a view to offer
assist to Airbnb. As they should avail the blessings of society the host will observe all of the act
of company social responsibilities (CSR) so this may impact as a contribution in effective
manner.