Borderoom Simulation: Strategic Analysis of Airbnb's Key Issues

This report addresses the issues faced by Airbnb, particularly concerning cancellation policies during the pandemic, which led to customer dissatisfaction and decreased ratings. It highlights Airbnb's values and the implementation of a more flexible cancellation refund policy to improve customer satisfaction and productivity. The report recommends adopting total quality management principles, including extended cancellation periods, proactive confirmation processes, well-trained employees, customer rewards, feedback collection, adherence to COVID-19 precautions, and food safety measures. These recommendations aim to enhance service quality, address customer issues, and achieve organizational goals. Desklib provides access to similar past papers and solved assignments for students seeking further assistance.

BORDEROOM
SIMULATION

Table of Contents
MAIN BODY...................................................................................................................................1
Issue of Airbnb............................................................................................................................1
Values of Airbnb.........................................................................................................................1
Recommendation........................................................................................................................2
REFERENCES................................................................................................................................3

MAIN BODY
Issue of Airbnb
Airbnb is leading hospitality market since many years and build great reputation in the
marketplace. The customers of the organization facing some issues which impact the Airbnb
organization. Due to pandemic lock-down the consumers of the organization face the issues of
cancellation of booking (Kasiri, et.al 2017). As the consumer are not able to move from one
place to another because the government of the nation stamped the border area and mode of
transportation. The organization operated no-refund policy when the consumer cancels the
booking. The customer of the organization were not satisfied with the policy of the organization.
The outcome of the dissatisfaction decrease the rating of company on various online booking
platform. The customers' ware hesitated due to no-refunds policy and fear of losing the payment
for the booking. The consumers of the organization shifting toward other competitors which
were providing the cancellation refund. The productivity of the organization is decrease.
Values of Airbnb
In order to resolve the issue the organization adopt new policy and bring flexibility in the
organization in order to achieve the goal of the organization. The organization utilized the plan
of action to provide cancellation refund policy. In this strategic policy the company delivered
opportunity for the customer. The consumers are able to cancel the booking up to 30 days before
time period of booking. The delivered service satisfied the buyers and give assistance in
increasing the productivity of the organization. Due to these services provided by the hospitality
industry the consumer attract toward the organization. It delivered better result then before on
the various online platforms like website and improve the rating of the company. The
organization builds great value in the marketplace. The policy of the organization reflect the
loyalty toward the consumer. The demand and supply of the buyer is fulfilled by the firm which
helps in leading the market rapidly. The customer feel secure before investing money in the
property Airbnb.
1

Recommendation
The organization improves the quality services with the assistance of total quality management.
The total quality management refers to the process of the action which is utilized to detect and
reduce the problems in order to delivery better experience to the customers of the organization
(Prashar, 2018). Some recommendation for the organization in order to modify the service
offered to the consumers.
 The organization provides extra time period for the cancellation of the booking without
deducting the amount.
 The leader or manager of the firm can ask for the conformation before booking and
cancelling made by the consumer.
 The employees of the organization should be well-trained and have relatable
knowledgeable of hospitality industry.
 The organization offer some rewards and bonus to the consumer at the time of special
occasions.
 The rating on the various online websites can be improved by asking the customer for
feedbacks.
 The Airbnb can improve the quality by following all the norms or precautions of covid19
(Gursoy, and Chi, 2020).
 The industry deliver food security and safety to the consumers in order to satisfy them.
Hence, these points can improve the quality of the organization and give assistance in
managing the issues of the customers in order to generate productivity and fulfil organizational
goals.
2

REFERENCES
Books and Journals
Gursoy, D. and Chi, C.G 2020. Effects of COVID-19 pandemic on hospitality industry: Review
of the current situations and a research agenda.
Kasiri, et.al 2017. Integration of standardization and customization: Impact on service quality,
customer satisfaction, and loyalty.Journal of Retailing and Consumer Services, 35,
pp.91-97.
Prashar, A., 2018. TQM as business strategy: a meta-analysis review. International Journal of
Productivity and Quality Management, 23(1), pp.74-89.
3