1

Management Of Strategy And Organizational

Change
 2

Table of Content

Introduction 3

Unique Selling Proposition 3

Aims and Objectives 6

SWOT Analysis 7

PESTLE Analysis 8

Competitors of Airbnb 9

Strategy Implemented 10

Competitive Advantage 12

Problems Faced 15

Company Performance 16

Business Model 19

Conclusion & Recommendation 24

References 25

Appendices 27
 3

Introduction
Airbnb is viewed as one of the world's biggest commercial centers for remarkable, real places to
stayover, it is offering more than 7 million facilities and 40,000 high quality products, all
controlled by the management. The management provides exceptional experience to their
travellers whenever they travel. First ever listing of the apartment was done on Rausch Street in
San Francisco in Brian and Joe's apartment. More than a billion of guests have visited Airbnb till
date, and is open in 62 dialects across 220+ nations. Airbnb elevates individuals to-individuals
association, network, and trust far and wide (Airbnb Newsroom, 2020). Regardless of whether
the accessible space is a palace for a night, a boat for seven days, or a condo for a month, Airbnb
is the most effortless route for individuals to feature these unmistakable spaces to a group of
people of millions.
While the underlying web-driven activities in "social travel" rotated around the audacious and
selfless inspirations offering individuals a spot to remain and share encounters, arranged
friendliness organizations turned the "welcoming visitors to your home" idea into a revenue
driven model. With the episodic birthplace of two ongoing college graduates changing over their
home into an "Air Bed and Breakfast" by offering for the time being remains on inflatable
cushions during a San Francisco gathering in 2007 (Guttentag, 2013), Airbnb made a
commission-based web-stage for room sharers and voyagers.

Unique Selling Proposition

Its Unique Selling Proposition is to "open nearby encounters and travel through the eyes of a
neighborhood". Furthermore, it has the option to accomplish this incredibly well and
furthermore set a benchmark on the lookout.
4
 5

(Fast Facts - Airbnb Newsroom, 2020)

 6

Aims and Objectives

Airbnb has ordered an enormous arrangement for extension. Throughout the following 10 years,
the guide puts 1 billion yearly visitors on the stage by 2028. As of now, the contributions are
shared spaces, private rooms or you can lease the whole home, however the objective is to now
incorporate getaway homes, exceptional spaces, B&B (quaint little inn) and boutiques.
At first, the organization focused on the independent explorer, however have discovered that
clients have had various requirements, including spots to cook, needing additional room or
travelers who are searching out an odd way. To address these issues, Airbnb has concocted
Assortments, which incorporate Airbnb for Family and Work. The goal is to permit clients to
book for social stays, weddings, special nights, bunch escapes and evening gatherings. This
element will be dispatched not long from now.

Also, the organization is offering Airbnb Plus. These homes have been by and by confirmed for
quality and solace. This rollout remembers 2,000 homes for 13 unique urban areas. This element
is proposed for clients who are hoping to have an ensured quality encounter. In the event that
that isn't sufficient, the organization is making it one stride further with Extravagance Retreats.
Starting a year ago, a securing was made that transformed into Past via Airbnb offering the best
of specially crafted trips that will be revealed this spring.
With all the moves up to the application, we are left to ponder a certain something. Has the
organization updated as far as how they manage variety and comprehensiveness on the stage
with the goal that it is quite "for everybody" as their new trademark states? They state, yes.
"The organization made explicit responsibilities that they would get to 11% regarding inward
variety before the finish of 2017. We outperformed that however, we actually comprehend that
that is adequately not," expressed Janaye Ingram, overseer of Public Organizations, to Black
Enterprise. "There are a ton of chances and a great deal of things that we are taking a gander at
looking at to improve to ensure that we are making a pipeline of qualified ability that can come
in and do both specialized and non-specialized jobs."
"Airbnb is working with a ton of gatherings this year as the start of the Quaint little inn and the
Boutique lodging rollout is occurring," referenced Cammy Houser, Conventional Neighborliness
program administrator. "I have gotten into some truly fascinating discussions about supporting
underrepresented minority proprietors and we're truly making a decent attempt about how these
organizations can blossom with Airbnb."
 7

SWOT Analysis
 8

PESTLE Analysis
 9

Competitors of Airbnb
Airbnb has become a solid
rivalry for inns since its rise. There have been a few rivals in the market who work precisely like
Airbnb yet have not had the option to stir up this organization since it takes endeavors to
persuade the hosts just as the visitor to pick the organization and have made a brand picture for
them. For instance:
● An opposition where members could win a stay in a skimming house pulled in 73,500
individuals – 28,000 of them new – to the Airbnb stage (Davis, 2016).
● Airbnb had directed a #Livethere challenge in 2017 in India by teaming up with MTV,
one of India's driving youth situated mediums to draw in their crowds and advance their
administrations by offering the opportunity to win a stand-out encounter.
● Advertising is additionally used to tempt individuals to become has; Airbnb initiates has
utilizing mottos, for example, 'Bring in cash as an Airbnb have. From putting something
aside for home fixes to going on a fantasy outing, has utilized additional pay to support
their interests' (Airbnb, 2017b).
● The above assertions are a few instances of how Airbnb has kept themselves over the
water even after contenders coming into the market. The following are a portion of the
significant contenders who follow distributed convenience and rival Airbnb.
❖ Homeaway
❖ Trivago & Bookings.com
❖ Homestay
❖ Home To Go
❖ House Trip
❖ Wimdu
❖ Flipkey

Some significant pointers that make a contrast among Airbnb and the other get-away rentals are:
● In contrast to Airbnb, explorers will probably not be associating with the
proprietors/hosts of the property.
● Retractions and different subtleties rely upon the tenant contract you sign with the land
owner, and numerous multiple times, need a security store.
● These facilities don't have the host.
● This is fundamentally the same as Airbnb however they tend more towards Lounge chair
surfing in that the valuing is low and it is all the more ordinarily a shared room, bed or
sofa as opposed to Airbnb, which will in general be a condo or guesthouse
● You'll be presenting your property to a little more than 340 million explorers for each
month—with no additional charge! There's even a Compensation For every Lead choice
that permits you to possibly pay when you get qualified leads.
 10

● In addition, with cordial relations with significant locales from HomeAway, VRBO,
FlipKey, Housetrip, Homestay, and various others, it's the ideal spot for clients to peruse
by value range, appraisals, areas, and an extensive rundown of different highlights and
pleasantries.
● As a shopper confronting administration, it just records expertly oversaw get-away
properties that are completely checked early, "which implies there is normally a group of
individuals around to ensure your outing is pretty problem free.

Strategy Implemented
Airbnb portrays itself as "an existence where anybody can have a place anyplace, giving solid
travel that is nearby, credible, different, comprehensive and economical" (Airbnb, 2019). An
upper hand exists when a firm has a long - enduring business advantage contrasted with rival
firms that is a significant edge over the opposition. This implies that the firm can accomplish
something contenders can't do, or has something contenders need.
While concentrating through the procedures of Airbnb, it was distinguished that Airbnb consisted
of cost administration based upper hand yet in addition separation was a significant piece of their
prosperity.
First - movers additionally will in general appreciate an upper hand. These are firms that stay at
the cutting edge of advances in their businesses. They were the organization that previously
worked into giving plain stays, which gave them a serious edge. This was a game plan in the
midst of their Blue Sea Methodology. This Structure plans to help in the distinguishing proof of
not yet misused market spaces, characterized by the open door for exceptionally beneficial
development, according to the meaning of a Blue Sea made by Kim and Mauborgne (Kim and
Mauborgne, 2005).
Airbnb has adapted to the Eliminate – Reduce – Raise – Create tool of this strategy.

1. Eliminate
● The issue of looking and booking lodgings from an outsider convenience search
stage. Lodgings work with numerous outsider organizations like hotels.com and
 11

bookings.com offer contrasting costs to customers on their sites however Airbnb

has a solitary stage demonstrating their postings without any impedances and
offer the best value rate.
● They have killed controlled photos of the host property by giving an expert
picture taker to free and furthermore referencing "affirmed surveys" on their
website page to give the visitors real data about the convenience as the vast
majority of the inn audits online have been organized by the lodging itself.
2. Raise
● Airbnb has quickened their consumer loyalty by giving them something beyond a
stay at the convenience, they have been given encounters. This occurs by
remaining at another person's home and living like a nearby by being presented to
the neighborhood societies and exercises. (Airbnb, Inc, 2015) By being helped by
a neighborhood, the visitor can find what Airbnb calls the "concealed diamonds",
which are touristy spots around their convenience.
● The organization has additionally urged the hosts to engage the visitors with some
extracurricular exercises like games exercises, language classes and so on They
have likewise expanded the informal organization impact by and large.
3. Reduce
● Airbnb has decreased altogether for the client the expense of booking a room
contrasted with the inn business. Their costs are likewise similarly lower to the
lodgings which make it an alluring option for the administrations given.
4. Create
● They made another market space in the P2P model. They have offered the clients
with another sort of involvement which carries them closer to the nearby climate.
Their convenience portrays a home, making a feeling of belongingness which isn't
exhibited in inns.
● As per the proposal composed by Jaime López-Barranco Muñíz on Airbnb: ICT
and the Sharing Economy Worldview in the Conventional Neighborliness
Industry, 87% of Airbnb's postings are beneath the normal room cost offered by
the lodging business, which signifies that Airbnb has an advantage in the inn
business in the evaluating field.

Competitive Advantage
All around planned procedures will in general break down some of the time when the contenders
are quick to respond to the moves made by the association. It was seen that as long of its reality,
 12

there has been a rise of different contenders yet Airbnb has had the option to endure the waves.
Airbnb has applied a serious methodology called the 'best offer'. This means that they have
combined minimal effort authority with separation administration to make the best an incentive
for the expansive portion of the market that has been focused on.
This was the production of the problematic advancement model. As Guttentag (2015) proposed,
the troublesome development idea apparently applies straightforwardly to Airbnb, which seems
to fail to meet expectations in examination with lodgings while considering conventional inn
execution ascribes like tidiness, quality confirmation, and the check in/out cycle. In any case, for
certain purchasers inns may offer a "execution oversupply" with respect to such properties,
which means regardless of Airbnb's indicated inadequacy it very well may be engaging because
of its elective arrangement of advantages. Undoubtedly, as is ordinary of troublesome
advancements, Airbnb facilities frequently are less expensive than lodgings (Guttentag, 2015;
Haywood et al., 2016; Hockenson, 2013). In addition, Airbnb facilities may accommodate a
more one of a kind and credible experience, and they may offer valuable family benefits (e.g., a
kitchen) not commonly accessible in lodgings (Guttentag, 2015).

Source: https://en.wikipedia.org/wiki/Disruptive_innovation

Airbnb as a firm is offering an assistance that is extremely alluring to clients, yet in addition
delivered at a sensibly ease, consequently offering the best benefit in a specific section
(expansive) of the market.
 13

1. High limit use: It is especially significant in businesses like inns, rental vehicles, and
aircrafts, in which fixed costs speak to an enormous level of complete expenses. In these
circumstances, section obstructions make industry members very touchy to even little
fluctuations sought after. This can be kept up through exact figures requesting.

2. Innovation: One of the attributes of the sharing economy is that of the dependence on
innovation for trade of data. Organizations that make interests in expense - saving
innovations are frequently exchanging expansion fixed costs for a decrease in factor
costs. The capacity of organizations to arrange trades between enormous quantities of
individuals make stages reasonable and alluring to the two purchasers and merchants
(e.g., Belk, 2014b). Airbnb has utilized its online stage to unite and make associations
among its hosts and visitors before they could even book their remainder. This has
prompted correspondence, where both the gatherings can clear inquiries. Airbnb
additionally has booking through their own site and no outsider encroaching into it which
has given it opportunity to control reservations and lower costs.

3. Economies of Scale: The focal rule of economies of scale is that costs per unit are less
when a firm grows its scale or size of activity. Sharing economy received via Airbnb has
exploited economies of scale. Organizations that offer shared administrations will in
general develop all the more naturally and their operational expenses are feasible. This
organization has both cost viability and separation by utilizing the shared economy for
their potential benefit. This is cost viability administrations for the visitors remaining at
the facilities as well.
 14

4. Diminishing waste: With the interest of shared convenience rising, it is an inquiry to pose
on the off chance that it builds the harm or decreases it. P2P convenience rentals plainly
give an occasion to utilize existing structures as opposed to building new structures; they
accordingly limit the assembled impression and save notable structures. Further
exploration is expected to examine this subject in more detail, including discharges from
movement, which might be higher for Airbnb in view of the higher probability of guests
utilizing private vehicle transport to arrive at their objective. These are a couple of
models which show us that the green advancement in the friendliness business has
become a piece of Airbnb, which has successively pulled in visitors who are enthused
about being with organizations that are ecologically benevolent.

Source: <http://www.goodfellowpublishers.com>

This chart shows the apparent degree of ecological agreeableness. (0 = min, 100 = max)

5. Learning: The expectation to absorb information impact says that the time needed to
finish an errand will diminish as an anticipated capacity of the occasions the undertaking
is rehashed. Airbnb as an organization has had a significant expectation to absorb
information since 2008. As the organization has been working for around 12 years now,
they have had the option to expand their per-have profitability because of an expansion in
the aptitudes through standard visitors staying tediously. This at last prompts a reduction
in the per unit cost at a fixed cost.
 15

Problems Faced
1. As of now the plan of action of Airbnb works with negligible or basically no
administrative control in lion's share of its areas around the world. Probably the greatest
test of this model is to fabricate trust and expand the chance of a fruitful booking. As
Airbnb keeps on growing, strategies for building up purchaser trust should be adjusted
more than a few nations and intended to regard social standards.
2. As shared convenience is a moderately new market, it has low hindrance for section as
Airbnb's rivals can consummately recreate its plan of action, which makes long haul
development testing.
3. There is legitimate uncertainty with Airbnb's administrations and it isn't exactly evident
whether its rental administrations abuse any laws. There are sure nations and states where
leasing facilities for under 30 days is unlawful thus it makes an issue for extension of
Airbnb. As the organization is growing forcefully, they need to concentrate through laws
of the specific area

Company Performance
As compared to June of 2018 when there were about 4.4 million postings on Airbnb and you can
see that Airbnb has kept on developing its stock at a surprising movement of practically 40% in
 16

the most recent year alone. What's maybe much more outstanding is that fast development in
immediately bookable postings on Airbnb, a 62% pace of development year on year.

What number of Appointments Does Airbnb Produce?

● The above graph shows the quantity of room evenings set up for Airbnb's foundation. In
Q2 of 2019 alone, voyagers utilized Airbnb's foundation to book just about 100 million
room evenings.

Airbnb Income: The amount Income Is Airbnb Producing?

● There is irregularity in Airbnb's incomes. Airbnb's greatest business sectors (Europe and
USA) will in general draw in the most travel throughout the late spring.
● Airbnb's incomes are becoming pretty tremendously – near 40% year-on-year
development in Q2 of 2019 versus 2018.
● In Q2 of 2019, Airbnb announced that it had made more than $1 Billion in income. It's
just the second time in the organization's set of experiences that they have revealed
 17

quarterly incomes in abundance of $1 billion, the last time being in 2018.

What Are Airbnb's Reserving/Occupancy Rates?

● Booked rates (inhabitants rates) will in general vary between 15-20% at a worldwide
level, while postings on normal stay without appointments around 65% of the time. Hosts
will in general impede their property's schedules around 20% of the time.

Average Daily Rate On Airbnb?

● The normal day by day pace of postings on Airbnb remains pretty reliably around
$100/night.

How Is Airbnb's Income Part Topographically?

 18

● Airbnb's greatest business sectors are Europe and the US. Asia-Pacific sits in a far off
third spot. Latin America takes the crown with development of 54%, at that point Asia-
Pacific at 52%, trailed by North America at a great 48% and Europe coming last at 26%.

Business Model
A plan of action, indicates how worth is as of now made for clients, and how worth is caught and
dispersed to providers and different accomplices. Thus, 'a plan of action is an impression of a […
] acknowledged methodology' (Casadesus-Masanell and Ricart, 2010: 205). Airbnb and other
shared convenience network facilitators work a plan of action design alluded to as a multi-sided
stage model (Thunder and Mangematin, 2015). This sort of plan of action associates at least two
 19

gatherings' together (purchaser, merchant and the specialist organization).

● New space is offered by the host..
● Visitors (second side) are searching for a spot to remain for a brief timeframe.
● Strengthening specialist co-ops (third side) may give photography administrations to
host, along these lines empowering them to introduce their space in a more alluring
manner on the stage.

Elements of Business Model

1. Value Proposition
 20

2. Value Creation
21
 22

Resources and capacities are a piece of the value Creation model. It empowers Airbnb to satisfy
its offer by methods for its key exercises and operational cycles. The exercises of Airbnb are
made of 5 fundamental exercises:

● A particular commercial center has been made via Airbnb to encourage the hosts and the
visitors. Despite the fact that this is an asset and no one should have the option to emulate
it effectively, as a piece of the administration business there is a higher possibility of
impersonation. Yet, in 2008, Airbnb needed to specially craft its commercial center
without any preparation to deal with the actually testing parts of its foundation: a safe,
solid installment framework for worldwide exchanges which doesn't need a bank permit;
a client assistance framework fit for taking care of high volumes of solicitations nonstop;
and a survey framework that takes into account issue goal and evaluations that advantage
both the network of visitors and hosts (Gallagher, 2017).
● Relating to the way that Airbnb had the main mover's preferred position, they likewise
had a hindrance in setting up trust. These have made a ruin yet additionally drove the
 23

main distributed convenience to set up a basic size of hosts and visitors alongside trust.
Trust relies upon hosts and visitors stretching out trust in the facilitator to satisfy its offer
dependably with honesty (Morgan and Chase, 1994).
● Airbnb profits by the aggregate information base of audits twoly: first, surveys drive site
traffic and add to the estimation of its administrations from a host and visitor viewpoint.
Each audit is helpful for the host, since it very well may be utilized for their P2P – CV as
a special device. To check the danger engaged with tolerating appointments. It is the
other way around for the visitor too. They are difficult to emulate as they are custom
fitted to Airbnb's foundation. The audits point out the quality issues which may require
intercession.
● With the goal for hosts to manage visitor grumblings and different solicitations, there is a
desperate requirement for information based assets. These have been given as FAQ's and
online classes that are directed by the organization for the hosts.
● Airbnb has utilized HR as their significant bit of leeway against every one of its rivals.
This has been exhibited in different proclamations above yet Airbnb has likewise its own
call place in light of the fact that their administration recuperation staffs are a significant
asset for building trust and limit hazards.
 24

Conclusion & Recommendation

Shared convenience networks are not simply one more convenience supplier; and they are not
simply one more online travel planner. Airbnb has figured out how to make a wide market that
fits impeccably to their central goal and vision. An organization that has entered the business
with disturbance and shaken the exhibitions of the neighborliness business. Subsequent to
concentrating through their advancement during the long stretches of capacity, it has been
pleasingly perceived that the organization works with forceful development, which has prompted
high benefits yet additionally guideline issues with certain areas. Even from that point onward,
Airbnb is one of the most confided in organizations everywhere in the world. It has become a
type of revenue for a few and an approach to meet new individuals from various pieces of the
world for other people. In India, Generation Z has embraced this type of convenience well
indeed, which has prompted higher figures of higher incomes and postings. Besides, Airbnb is
starting to make advances into business travel. Perpetually organizations are allowing staff to
book their own schedules, and giving them motivating forces to be frugal. They appear to
become in any event, during the pandemic Coronavirus and serve the network through the stage.
 25

References
1. <http://www.goodfellowpublishers.com>

2. Airbnb Newsroom ( 2020) retrieved on April 5,2020 from https://news.airbnb.com/fast-

facts/
3. Airbnb Newsroom ( 2020) retrieved on April 6, 2020 from
https://news.airbnb.com/about-us/
4. Belk, R. (2014b) You are what you can access: Sharing and collaborative consumption
online, Journal of Business Research, 67 (8), 1595–1600.
5. Casadesus-Masanell, R. and Ricart, J.E. (2010) From strategy to business models and
onto tactics, Long Range Planning, 43 (2/3), 195–215.
6. Guttentag, D., 2015. Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector. Curr. Issues Tour. 18 (12), 1192–1217
7. Gallagher, L. (2017) The Airbnb Story: How Three Ordinary Guys Disrupted an Industry,
Made Billions... And Created Plenty of Controversy, New York: Hughton Mifflin
Hartcourt Publishing Company.
8. Haywood, J., Hoyt, A., Wilson, C., Hennis, S., Alvarado, C., 2016. STR: Airbnb’s Impact
Minor on Manhattan Hotels. Hotel News Now, Retrieved from http://
www.hotelnewsnow.com/Articles/29639/STR-Airbnbs-impact-minor-onManhattan-
hotels (2016, February 9).
9. Hockenson, L., 2013. Airbnb Is 20% to 50% Cheaper than a Hotel (unless You’re in
Vegas or Houston). Gigaom, Retrieved from https://gigaom.com/2013/06/18/ airbnb-is-
20-to-50-cheaper-than-a-hotel-unless-youre-in-vegas-or-houston/ (2013, June 18).
10. Morgan, R.M. and Hunt, S.D. (1994) The commitment-trust theory of relationship
marketing, Journal of Marketing, 58 (3), 20–38.
11. https://en.wikipedia.org/wiki/Disruptive_innovation

12. https://www.cornerstoneresults.com/wp-content/uploads/2015/11/Porters-Generic-
Strategies.jpg
13. Kim, C. and Mauborgne, R., 2005. ERRC GRID. [image] Available at:
<https://www.blueoceanstrategy.com/tools/errc-grid/> [Accessed 3 April 2020].
 26

14. Porter, M. (1985). Competitive Advantage. New York: Free Press .

Appendices
Appendices 1 - Airbnb Story
27
28
 29

Appendices 2- SWOT Analysis

 30

Appendices 3: PESTLE Analysis

 31

Appendices 4 - Strategy of Airbnb

Appendices 5 - Disruptive technology Graph

 32

Appendices 6 - Porter's generic Strategy

Appendices 7 - Environmental consideration

 33

Appendices 8 - Room Nights Booked

Appendices 9 - Gross Revenue

 34

Appendices 10 - Occupancy Rate

Appendices 11 - Average daily Rate

 35

Appendices 12 - Revenue generated in accordance to Demographics

Appendices 13 - Individual Analysis of Rahul

The report was divided into half and work was done accordingly.

Airbnb has created its platform worldwide which is offering happy stay to the customers away
from their home. Airbnb provides a number of facilities to its guests and is spread around more
than 100 nations worldwide. The concept of Airbnb has gained more value from the current
generation because in today's time teenagers prefer Airbnb more than any hotels because the
services provided are quite advanced and emplific than the hotels provide. The management
team has worked hard to raise the revenue for the firm. This seems to be a profitable business for
both the firm and the host party. Airbnb is considered to be one of the best companies in this
 36

generation. Within a short span of time the company proved its worth in the hospitality industry.
Seeing their success I intended to study this company because there are many things one could
learn from this venture.

The company has made a profit of around 3.8 Billion in 2018. The success of this company is
just because of its CEO and his friends who had no idea what to do, also they did not have any
specific goals or objectives for their business plan/ venture but somehow managed to have a
successful startup. Their achievement proved that nothing is impossible and success can be
achieved by any means. The company believed that setting goals is very crucial because if we are
not aware of our success then we shall start thinking about it to make the dream come true.

Money, maintaining guest relations and occupancy is very important for Airbnb because their
business is dependent on the customers itself. If there is no good response customers will never
return back and this will make a negative impact for the company profile. The ultimate motive of
the company is to satisfy the guest and create loyalty with them for making them the repetitive
guest.

Airbnb should focus on its weaknesses like increasing the prices for the stay, misbehaviour of the
host and many more. This will affect the company profile and damage the brand image. The
management should also keep an eye on its competitors because the increasing number of the
competitors will slow down the business for the company.

The company uses various strategies. They have more than 3000 employees worldwide who are
responsible for providing quality service. Airbnb does not provide direct service but it is the host
who provides the service. So indeed, it is the host who has to solve the issues or problems faced
by the guest. Apart from that there are help centers for Airbnb where customers' problems are
solved and are taken care of in case of any emergency.

Airbnb can be said to operate itself with business to business directly where the host has the
chance to make some money for himself by renting his place for a shorter time period. The
company provides customers with a varied experience by making them choose the thing on their
platform that they want to do like scuba diving, learning something productive like art class or
cooking classes, etc. moreover they offer extraordinary stay like homestay, bunk beds, etc.
 37

Airbnb provides all the facilities and makes sure that the host is not hampered by any means.
Airbnb is considered to be a broker between the guest and the host.

Presently Airbnb is charging service fees of 3% on every reservation. Also it is generating

revenue from charging fees from the host. Everything is handled via a platform so Airbnb is
responsible for all the financial transactions. If the guest is from the Airbnb website then the
company is responsible for paying the guest within the next 24 hours of the guest check-in.
Airbnb also has some precise cancellation policies and for refund as well.

Airbnb was started in 2007, the website was expanded in 2009. The firm is promoting itself in
many modern ways such as promotional advertisement, campaign, digital platform and more.
Airbnb is promoting itself as living as a local because one could experience the lifestyle in such a
way. They use localized strategy to promote themselves. They prefer using social platforms to
attract an audience accordingly. The management team also maintains their public relation
accurately. Once Airbnb provided free accommodation to the people who had problems during
the Hurricane in New York.

Airbnb has marked its presence all around the globe and this has become a success story for all
the new entrepreneurs.

Appendices 14 - Individual analysis of Dinesh

The report was divided into half and work was done accordingly.

Airbnb is an organization on the social platform which provides places to stay to guests on rent.
This is managed by both the host and the firm. However Airbnb can be considered as a type of a
hotel but the only difference is services are provided by the host itself at Airbnb and there are
employees who work at the hotel. Airbnb is in more than 200 countries and it provides an
opportunity to the guest to let them stay at someone else's house. Hotels are not cheaper as
compared to Airbnb.
 38

Airbnb is the only organization who has started sharing economy and has made it a success and a
big one. The owner of Airbnb had no idea nor they had any goals but tried their best to make a
handsome profit out of nothing. This business is beneficial for both the host and the firm but the
host may face any damage made by the guest as well as the guest can face immature places as
listed on the website. The major advantage of Airbnb is guests can book a place at a lower price
and can experience the locality. The motive of Airbnb is to make people feel a home away from
their home at a cheap price.

Airbnb has a unique culture where they encourage their employees to take risk for innovation.
They always pay close attention to the things going around because this will help them to be
updated of the surroundings. The organization believes that there should be a good working
environment so the employees can work with full energy. They believe in success of both the
employees and the firm.

Airbnb uses various strategies for running their business. They follow the platform business
model where they act as the broker between the customer(guest) and the supplier(host). They
also charge commission of 9% to 15%. They do not host events or parties neither they deal with
the real estate thing. Their only motive is to get customers satisfied by giving them the
experience of home away from home. The company uses modern technology to advertise their
business and also this is helping them to build a large empire and a well recognised brand. Their
business strategy is encouraging millions of people around the world. They believe that
understanding stakeholders and guests is important because they are the only one who will help
in expanding the business. This becomes the base for their competitive advantage. Airbnb takes
safety precautions for both guests and the host to maintain their safety. They always pay attention
to the security check, background, securing of the financial process, protection for the accounts
for the host and the guest as well. This will ultimately improve the brand image. Airbnb targets
all kinds of customers starting from teenagers, middle age, or the elderly people. Their strategies
help them to attract every age group.

As part of their strategy creation they make sure that the property is secured and simple so that it
could be given on rent easily by the host. The additional advantage is that Airbnb provides an
insurance of around 1 Million Dollar for the property damage. Also the organization stays in
 39

touch with the guest via phone and mail. On the other side guests get their value for money.
Moreover, it is easy to browse for the guest because the website is too user friendly. Guests are
also provided with the self check-in option and their payments are also secured. The company
has faced many negative reviews from the guest due to the misbehaviour of the host, but the
organization always makes sure to solve the issue. Moreover there are also complaints from the
neighbour about the property, Airbnb has made some regulatory policies which are beneficial for
the guest and the surrounding as well. The company has also faced many problems.

Airbnb is giving tough competition to the hotel properties. Their growth rate has increased at
60%. The organization makes sure that they maintain their occupancy high. Their average
occupancy is always above 70%. There were more than 3 Million listings around the world on
Airbnb in the year 2016. This number is definitely large as compared to the Marriott
Internationals, Hilton, Accor Hotels and many more. This shows that Airbnb is not a small
competitor in the hospitality industry.

Airbnb is a huge business organization which is running successfully worldwide. They try to
understand all the required needs of the guest to make them feel home and making their
experience a valuable one.