In order to solve these problems the company should create requirements for the

In order to solve these problems the company should

This preview shows page 7 - 9 out of 9 pages.

In order to solve these problems, the company should create requirements for the hostssuch as the hosts must provide insurance for every guest, especially when the hosts offer to thecustomers some other outdoor activities. Before signing up contracts with the host, the company
should find some information about the hosts to make sure they are reliable or not. Anothersolution is that the company can implement the recommendation system where the guests canfreely share their comments about the hosts and rate their services. This could provide incentivefor the host to leverage their performance. They can also provide discount as incentive for thecustomers to give comments and rating more.Recommendation #3Airbnb’s hosts also receive some risks. They suffer some legal and financial problemsfrom accommodating guests. There had been stories of hosts needing to evict guests who wouldnot leave, or create damages to the rooms. This results in booking growth rate going down theserecent years.The company can avoid this by organizing a problem center for the hosts where they candeliver their complaints about the customers. Through this center and the recommendationsystem, they can know more about the situation from both sides and settle the problems. Airbnbshould negotiate with the local administration to have a protection and support for the hosts.Recommendation #4The final problem is that the company has to solve is the taxation and regulations. Thegovernments of some countries are now trying to put tax on the business. Hence, the only waythey can do is negotiate with the administrations and tradition brick-and-mortar establishments inorder to have low tax rate. Airbnb also introduce a detailed manual, instructions for the hosts toreport their tax to the government through a form. The host helping center should responsible forinstructing the individual hosts about this.
C.ConclusionAirbnb has a good and sustainable strategy which put the fundamental base for thecompany to distinguish themselves from competitors and contribute a greater success in thefuture. They should keep that strategy and its business model. The troubles they have to face now are the safety for the hosts and guests and regulationsfrom the government. This requires some of the changes in their value chain, dedicate handle andnegotiation with government. Airbnb and its users should be optimistic, as many policyalternatives exist to mitigate the company’s risks to public safety, while preserving theinnovation and efficiency that has brought benefits to so many people.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture