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Airbnb Case Study AnalysisMKT 701: Marketing StrategyLouisiana State University, Shreveport Dr. Aadel Darrat
Airbnb Case Study AnalysisIntroductionAirbnb, one of the top leading online lodging service companies, was generated in August 2008. The company was founded in San Franciso, California by Brian Chesky, Joe Gebbia, and NathanBlecharczyk. The idea was formed in fall 2007 when Chesky and Gebbia were unable to pay rent for their loft. The two were unemployed and had previously moved from New York; thus, creating a difficult time making financial ends meet. The plan of renting areas of their loft as housings to strangers would generate the extra income that was needed for rent. The invention of a new business venture now seemed likely. Chesky then connected with his former roommate, Blecharczyk, to become the developer of the website that would be used as the platform for peer-to-peer rental property (Capizzani, Kim, & Obersriebnig, 2015). Airbnb allows property owners to rent out their spaces, including private rooms, shared spaces, or the entire property. Airbnb earned its popularity based on the fact that not every visitor or tourist is financially able to stay ina hotel, and sometimes it can be challenging searching for a room in a busy area. Since the company was established in 2008, there has been over 260 million people that have booked rental properties through Airbnb.Although Airbnb’s growth and highly profitable business continued to expand not only regionally, but globally, the company still faces strategic challenges that can benefit or ultimatelydiscredit them. One of the top challenges and limitations of the company’s success is the trust between potential guests, hosts, and Airbnb itself (Parsons, 2011).