Challenges Solution and Future of Airbnb
Introduction
Airbnb Inc. is a digital marketplace business that provides hospitality services to guests by providing a platform for visitors and locals to communicate with one another. Those interested in leasing or renting for a short length of time can do so in rooms, hostels, residences, guest rooms, and homes through the company. Airbnb does not own rental properties neither does it operate a travel or tour business; rather, it operates as a middleman between visitors and hosts. Nonetheless, Airbnb has grown in popularity throughout the years since its inception in 2007. It has since expanded beyond space beds to include boat rentals, tree huts, individual islands, igloos, as well as guest houses. Additionally, it has established branches in additional states and nations. (2017) (Zervas, Proserpio, & Byers).
Hosts with available rooms enroll on the webpage and submit a biography with their names, social security numbers, and locations. They give Airbnb with private information such as contact details and email addresses. Guests wishing to book a space use the Airbnb site to find a host in their chosen location, communicate with them, and transact, with the company earning a fee from both the guest and host. Nevertheless, in current days, Airbnb has encountered difficulties that must be overcome. This conversation focuses on the issues at hand and probable remedies.
Challenges and solutions
Airbnb Inc. has faced numerous hurdles during the last few years. The first is regulatory challenges, as residents, particularly in areas like San Francisco, argue that accommodation has become prohibitively costly, and Airbnb hosts are contributing to the problem by renting out rooms at a high cost for them to maximize earnings. The solution to this challenge is for Airbnb to regulate and manage these prices that hosts are charging and ensure that they are in line with the market prices. The safety of the hosts, as well as the destruction of property, was the second obstacle that sparked widespread media coverage, particularly in print media. In 2011, EJ, a professional event director in San Francisco, booked her property on Airbnb. The guest was kind and expressed gratitude to EJ for her flat, only to return to find it plundered, her possessions stolen, and extensive damage throughout the house. The security breach prompted Airbnb to examine their security measures, including requiring all members to provide detailed profile information for both hosts and guests. Nonetheless, the corporation can also verify that customers provide verified credentials prior to booking so that information about someone can be scanned. Additionally, it can connect the account to social networking sites like Facebook in order to delve deeper into the person’s identity, family, as well as acquaintances.
Thirdly, Airbnb has been up against intense competition from competitors like Homestay, Tujia, and Oasis Collection. This has resulted in a greater selection for clients, which has a negative effect on Airbnb’s income in the long run. Given that the majority of clients desire ultimate comfort when traveling and booking restaurants, Airbnb’s mission is to improve the quality of service and add a little additional warmth to the client experience in order to attract more clients. By establishing regulations that assure customer safety and implementing remuneration packages, businesses can increase consumer trust. The fourth obstacle is government pressure, which alleges that Airbnb does not have a revenue-taxing structure in place. It is critical that the business develops procedures to implement a tax policy that requires participants to submit reports and pay tax, or that the corporation deducts a proportion to pay tax (Forgacs & Dimanche, 2016).
Future of Airbnb
Nobody can tell the future of a business especially if the business is new. Airbnb has grown tremendously throughout the years since its establishment. Though there are many restrictions which may hinder its growth the business has a bright future. Airbnb could improve their business beyond lodging, like car-sharing, meal-sharing, as well as local excursions. Personally, I believe that Airbnb, as well as the sharing economy in general, has a great future ahead of it. I believe we are at the dawn of a new era wherein individuals will perceive their possessions more as sharable assets instead of as personal possessions and in which a large portion of monetary activities will occur on sharing economy places. Airbnb is unquestionably in the vanguard of this movement.
References
Forgacs, G., & Dimanche, F. (2016). Revenue challenges for hotels in the sharing economy: facing the Airbnb menace. Journal of Revenue and Pricing Management, 15(6), 509-515.
Zervas, G., Proserpio, D., & Byers, J. W. (2017). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Journal of marketing research, 54(5), 687-705.
