By the start Airbnb has been functioning in a space commonly refer as the

By the start airbnb has been functioning in a space

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By the start, Airbnb has been functioning in a space commonly refer as the “sharing economy”. Airbnb provide platform where services are offered, and demands are met through a peer-reviewed digital marketplace. By leveraging the ubiquitous usage of smartphones and the continental decrease in technology cost, Airbnb provided platform for individuals who instantly share number of resources. The individual can simply sign up through the platform and offer the service. The business is growing at an impressive rate including an 850 million cash infusion in 2016 that raised its estimated valuation to 30 billion. Airbnb earns its revenue through two different sources by being the middle man between hosts and guests. Airbnb didn’t own any estate properties; therefore, their asset is their technology platform and that is why they’re generating high revenue with low operating cost. Airbnb charge 3% transaction fee from the host, about 11% from guest per booking.Next, Airbnb thrive itself on building trust and established personal connection with the others. Airbnb made the change in the guest experience by focus on guests desires who seeking for an authentic experience. If the host help the guest live like a local and introduce them to the community, guests feel welcome and at home. In addition, Airbnb provide stories section in the
company website which enable prospective guests to get an insight through guests and hosts stories experiences and those stories are meant to engage an emotional attachment with the readers. Pricing is another effective strategy from Airbnb. Airbnb good pricing helping attract theright kind of customer since more tourists chose to live with the locals and save their money instead of hotels. This is Airbnb most unique competitive advantages which allow them to blow away competitors, defined its name and success, outstanding from brick-and-mortar traditional hotels.Finally, to govern the community of hosts and guests, Airbnb provide a rating system so both hosts and guests and rated each other in the website. According to Gamble, this approach incentivized hosts to provide quality service, while encourage guests to leave a property as they found it.5. What recommendations would you make to Airbnb to improve its competitiveness in accommodations market while mitigating any current and future risk?I can see a bright future of Airbnb by being one of the leaders in the sharing economy. Hosts, guests and Airbnb themselves all can benefit from Airbnb platform. But despise what goes along with this opportunity, they’re still facing various current issues and future risks:a. Customer Services: hosts and guests are having one issue: trust. Even though Airbnb has provided a rating system for both hosts and guests, however, these reviews could be unreliable because guests could review for themselves and rival also, therefore, it could affect the host’s

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