Business: Airbnb Company Analysis – 596 Words

Introduction

Compared to traditional hotel bookings and accommodation, shared accommodation is currently the norm. Airbnb is an online marketplace connecting people who want to rent with those who want to stay somewhere. With total revenue of $23 billion in the North American region and $16.5 billion from Europe last year, the company’s global presence has helped it improve profitability since 2007 (Lee et al., 2022).

Technology

The company uses machine learning and artificial intelligence to improve search, reduce fraud and ensure customers receive accurate pricing advice. Additionally, the system’s principles combine reviews, images and asset diversity to provide a global best-in-class experience. The company was researching how to use natural language processing techniques to improve customer experience and keep reviews relevant.

Concurrent efforts to maintain, improve and create programs make searching for home-sharing spaces safe and fueled by the growing desire for modern technology. As an effective strategy to connect existing customers with potential customers, Airbnb has successfully implemented technological developments, especially internet communication. Therefore, the company has invested heavily in data scientists, computer scientists, graphic designers, and various IT professionals to strengthen its online security and establish a market presence.

Making Profits

The company benefits from the sharing economy by renting out assets. Airbnb takes a commission for each booking. If one reserves a property, a breakdown of the fees that will be charged and service fees, including the cost of operating the platform and providing support, accounts for the bulk of Airbnb’s revenue. Airbnb also offers a different payment method that one may encounter from time to time. Licenses and permits must be obtained in most cities before the law allows a property owner to accept paying guests.

How to Make a Booking

Open the Airbnb website and sign in or sign up. Use the site’s various filters to search for available locations after specifying a location and future date. Please make a reservation, as the reservation may only sometimes be fully confirmed once the host accepts it. Once payment for accommodation has been made, one will be notified of the booking and given the address where one will be staying. One can set up a payment plan for more extended stays with lower payments and more.

Challenges Facing Airbnb

Airbnb faced new issues due to its international operations, including increased residential noise and regulatory and policy oversight. These measures have significantly affected the company’s revenue growth, as has its regional competitive advantage. Additionally, due to the company’s shared housing, residents have reported increased short-term traffic noise in their neighborhoods. According to opponents of the sharing system, landlords who convert permanent residents into short-term housing often increase local taxes, negatively impacting the economy.

Curbing the Challenges

The company must ensure that most of the profits go to the hosts to eliminate any arguments in favor of gentrification or tax increases and the need to actively combat negative feedback by sharing photos of customers who contribute to local culture. Social messages to communicate the safety and benefits of Airbnb accommodation over conventional hotels should influence management and oversight practices. These technologies will significantly affect organizations’ financial and social status and ensure that they operate according to the law.

Conclusion

Airbnb’s corporate strategy allows the company to expand and build a global business. The concept of corporate housing has spread to more countries and cities through machine learning, artificial intelligence and the Internet. Skill sets and resources are optimized to maintain a competitive edge in the market. Despite regulatory and policy issues, the company continues to make money and provide affordable housing to its customers worldwide.

Reference

Lee, C. K. H., Tse, Y. K., Zhang, M., & Wang, Y. (2022). What have hosts overlooked for improving stay experience in accommodation-sharing? Empirical evidence from Airbnb customer reviews. International Journal of Contemporary Hospitality Management, Web.