Not being able to inspect homes and regulate their hosts and users could cause

Not being able to inspect homes and regulate their

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Not being able to inspect homes and regulate their hosts and users could cause problems for Airbnb. For instance, before you check into a hotel, the maid “inspects and cleans” the room. If there is an issue when you arrive to your room, you tell the front desk receptionist. With Airbnb, this regulation is impossible. It would be far too costly to have employees check out properties before and after guests. To help with some of these structural issues, I suggest Airbnb implement a program where valued, active hosts can earn credits by inspecting the homes of new hosts in their area before new hosts can allow guests to stay. Also, to hold hosts accountable to adhering to Airbnb’s set of standards, Airbnb can withhold, within reason, part of hosts’ fees for bad reviews and cancellations that were controllable. 10
Airbnb AnalysisAirbnb is the third most valuable private company in the world (Mitra, 2016). Because Airbnb is a privately held company, it is difficult to find financial ratios for this company for the time being. Below I have provided some financial information that I have gathered on Airbnb:1.2017 was the first year of being fully profitable for Airbnb (Hook, 2018). 2.Airbnb’s Revenues in 2017 totaled to around $2.6 billion and their net profit was close to $100 million (Bort, 2018). This gives Airbnb a profit margin of about 3.5%. 3.Airbnb is estimated to be worth $100 billion (Mitra, 2016).4.At the beginning of 2017, Airbnb was projected to have revenues of $3.5 billion a year by 2020. While these are just projections (due to Airbnb being private, a lot of available information is projections, this would be a 3,400% increase from what the company has seen in recent years (Gallagher, 2017). 5.My assumption is that because of Airbnb’s online platform and “shared economy,” Airbnb’s assets, beyond cash and cash equivalents, are predominantly intangible assets. When Airbnb goes public, more financial ratios about the company will be easier to obtain, but the question of when this will happen remains. Many peoplebelieved that Airbnb was preparing to go public until there was an obvious internal clash in the beginning of 2018. Airbnb’s CFO, Laurence Tosi, quit, seemingly, because of differences between him and Airbnb cofounder CEO, Brian Chesky (Bort, 2018). It has been reported that even though many employees and influential backers were confident on Airbnb’s exceeding of projections in 2017 and felt the company was ready to go public, Brian Chesky had no intent on the 11
Airbnb Analysiscompany going public in 2018. This shock could have been what finally sent Tosi out the door (Zaleski, 2018). Stakeholders involved in the sharing economy, specifically in rental companies like Airbnb, range from hosts and users to the Federal government. Other stakeholders in between this range include the States’ government (tax laws), local businesses, insurance companies, other businesses in the tourism industry, and Airbnbemployees.

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