Business Strategy – Airbnb

Business Strategy – Airbnb

The argument centers on Airbnb, a 2008 startup platform for peer-to-peer room rentals. Despite its quick expansion and profitability, Airbnb faced legal issues in several countries. Further posing existential concerns to the corporate model was the COVID-19 epidemic. To meet these difficulties, a complete approach that includes regulatory compliance, ethical consumer treatment, an adaptive worldwide approach, crisis readiness, and a dedication to sustainability and responsible tourism is needed (Thompson et al., 2013). This approach manages challenging regulatory settings and Airbnb’s global development while ensuring long-term profitability and favorable effects on communities, hosts, and guests. Therefore, the long-term success of Airbnb depends on creating a comprehensive business plan that will enable it to adhere to local, state, and international regulatory requirements while ensuring the ethical treatment of customers and addressing the particular difficulties brought on by the international component of its business model. Airbnb can overcome the difficulties by using the suggested techniques: regulatory compliance, ethical treatment of consumers, an adaptive worldwide approach, crisis preparedness, and dedication to sustainability and responsible tourism.

Regulatory Compliance

To develop connections with decision-makers and promote the adoption of transparent, equitable, and uniform rules, Airbnb should have a dedicated government affairs team. When authorities and Airbnb work together, new regulations may be created that consider Airbnb’s particular business model while also addressing safety, taxation, and community effect issues. Airbnb can develop a platform known as a “Regulatory Compliance Center” that gives regulators access to real-time information on listings, occupancy rates, and tax receipts (Fields, 2022). This openness highlights the platform’s dedication to collaboration and ethical business practices. A thorough online training program should be made available by Airbnb for hosts, with lessons on local regulations, safety standards, and community involvement. By encouraging responsible hosting, Airbnb can decrease instances that result in legal problems and unfavorable customer experiences.

Ethical Treatment of Consumers

Airbnb can implement stringent quality control procedures to guarantee that listings adhere to predetermined accuracy, cleanliness, and safety criteria. It is possible to implement recurring inspections and host certifications. Additionally, the company can establish a mechanism for resolving disputes that is equitable and effective and protects both visitors and hosts (Fields, 2022). Conflicts can be resolved with the assistance of a neutral mediator. To guarantee that all visitors are treated equally regardless of their color, gender, or background, anti-discrimination regulations must be continuously monitored and enforced.

International Strategy

The company should be prepared to accept the possibility that each nation may have specific cultural and regulatory difficulties. With an awareness of the local dynamics and appropriate operational changes, Airbnb should customize its strategy for each market (Thompson et al., 2013). Another strategy is to form alliances with organizations like tourism boards, companies, and towns for assistance and local knowledge. These alliances may assist Airbnb in navigating legal snags and fostering community trust. To meet the tastes and requirements of each market, Airbnb can customize its platform to include language assistance, payment options, and listings sensitive to cultural differences.

Crisis Preparedness

Airbnb should consider expanding its offerings beyond lodgings, such as experiences and longer-term rentals, in reaction to unforeseeable occurrences like the COVID-19 epidemic to reduce the risks connected with unexpected travel interruptions. When a crisis arises, Airbnb can create a fund to assist hosts, ensuring they are not exclusively dependent on their Airbnb revenue.

Sustainability and Responsible Tourism

In order to meet the increased demand for environmentally conscious travel, the company can encourage hosts to incorporate sustainable and eco-friendly practices into their listings (Thompson et al., 2013). The company can also show its support for responsible travel by contributing to local initiatives and projects that help the communities where Airbnb operates.

Conclusion

Airbnb can reconcile its expansion goals with legal requirements, moral concerns, and the specifics of global markets through regulatory compliance, ethical treatment of consumers, adapting a worldwide approach, crisis preparedness, and emphasizing sustainability and responsible tourism. These strategies ought to aid Airbnb in upholding a favorable reputation, gaining regulatory approval, and ensuring the long-term viability of its peer-to-peer room-sharing business model.

References

Fields, S. (2022). Strategies for competitive advantage in small construction businesses (Doctoral dissertation, Walden University).

Thompson, A., Peteraf, M., Gamble, J., Strickland III, A. J., & Jain, A. K. (2013). Crafting & executing strategy 19/e: The quest for competitive advantage: Concepts and cases. McGraw-Hill Education.

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Business Strategy – Airbnb

Read “Case 1: Airbnb in 2020” in your Connect textbook.

In the accommodations market, Airbnb appears to have a significant advantage over its competitors in terms of 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?
Should there be a separate strategy for the international component of their business model?