Airbnb- Disrupting the Hotel Industry
Airbnb’s Argument
The argument put forth by Airbnb is not strong. Notably, by allowing potentially illegal activities to take place on their platform, they have a hand in aiding criminals in promoting their activities. Arguably, the platform’s criminal offenses are the same as any other offenses (Lu & Tabari, 2019). While I consider the argument put forth by Airbnb as weak, I believe since they own the site, they should control the nature of activities on the website even if the argument helps them evade fines and liabilities. In addition, this argument is based on an ethical background, whereby their argument is not ethical. When workers hired by a company conduct criminal activities, they are fired regardless of whether the illegality was done in their workplace. Thus, in the same manner, Airbnb should control the application and take note of unethical and illegal activities that may take place.
The Concept of the Sharing Economy that Could Be Abused By Unscrupulous “Entrepreneurs”
I am concerned with the concept of sharing the economy in fear of what if the intended purpose is not achieved and instead leads to abusive entrepreneurs. Initially, I will not be concerned about the bad image that is shown for novel concepts since if businesses are providing and marketing services well, they should create a strong brand that is widely recognized and respected because respect is due where it deserves, such as for reputable companies (Ritter & Schanz, 2019). However, I am concerned about customers because entrepreneurs with poor morals can harm consumers. Such entrepreneurs will be focused on profits and undertake even unhealthy means to achieve it.
References
Lu, L., & Tabari, S. (2019). Impact of Airbnb on customers’ behavior in the UK hotel industry. Tourism Analysis, 24(1), 13-26.
Ritter, M., & Schanz, H. (2019). The sharing economy: A comprehensive business model framework. Journal of Cleaner Production, 213, 320-331.
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Question 
The opening chapter case discusses the founding of Airbnb in 2007. The founders originally started by providing places to sleep during big major events (SXSW and the 2008 Democratic National Convention). However, they did not have a sustainable business model until getting help through a Silicon Valley incubator. That experience prepared them to successfully enter the global hotel industry with their disruptive business model. In 2017, Airbnb was valued at $30 billion dollars even though it is still a private firm. This valuation is higher than the market capitalization value of Marriott, which is the world’s largest hotel chain. External forces, such as regulation against short-term rentals, are creating problems for Airbnb’s business growth.
Airbnb- Disrupting the Hotel Industry
A one-minute commercial, “What is Airbnb?” is on YouTube.
Available on YouTube is an ABC news story on the dark side of opening your home to strangers on Airbnb: “Airbnb Home Rental Nightmares (https://youtu.be/PfDAEF02tp0)”
Citing the Digital Millennium Copyright Act (DMCA), Airbnb is challenging the New York law and others in the United States, arguing that it merely operates a digital marketplace and thus is not responsible for the content that users place on its site. Do you think Airbnb has a strong argument? Why or why not?
Are you concerned that the concept of the sharing economy could be abused by unscrupulous “entrepreneurs” and thus give the entire novel concept a bad reputation? Why or why not? Explain.
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