Wk 4 – Apply: Case Study Analysis
Read “Case 1: Airbnb in 2020” in your Connect textbook.
In the accommodations market, Airbnb appears to have a significant advantage over its competitors as it relates to regulations affecting the operations of its business.
Develop a business strategy that will allow Airbnb to meet local, state, and international regulatory requirements and motivate individuals to benefit from participating in this space of the accommodations market. Address the following questions:
- How can Airbnb ensure the ethical treatment of consumers?
Airbnb can ensure the ethical treatment of consumers by having a highly responsive 24/7 customer chat and voice support, where consumers can file complaints. Airbnb should also monitor properties that repeatedly have bad customer feedback, and mandate the operators to comply with Airbnb’s standards. If the operators fail to comply, Airbnb can ban them from using the platform for a certain period of time, or indefinitely.
Airbnb can encourage more individuals to participate as operators by establishing a comprehensive and enticing incentives program. For example, Airbnb can give top search result privileges for accommodations that receive ten customer ratings of 8 or more. It can also give monetary rewards, or create an annual awards program for top performing Airbnb operators.
- Should there be a separate strategy for the international component of their business model?
Airbnb should develop a policy that encompasses the local, state, and international regulations in the areas it operates in. In doing so, it will create the standards which Airbnb operators should comply with. One of these would be regular health and sanitation checks, which is a common regulation in the hospitality industry.
Airbnb can make a more aggressive business strategy in countries where there are low Airbnb bookings. It must conduct a careful market research, understand the gaps, and determine how Airbnb can fill those with its accommodation services. It will then make a marketing strategy to get more people to use the platform for their accommodation needs.