Airbnb Case

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        Airbnb is a fast moving company started by two unemployed graphic designers in 2007. These two friends needed to make next month’s rent, and had no way of reaching the required amount.  A stroke of inspiration hit them just in time;  as a large event was taking place in town and hotel rooms were very scarce locally.  Together they pondered, why not rent their apartment to those seeking lodging?  Lo and behold, their company was born.

        Airbnb followed suit with other established e-commerce businesses and promoted its customer friendly ease of use.  Similar to Steve Jobs’ Apple application 3 clicks to a song;  Airbnb desired three clicks to rent.  Easy and simple was the win-win situation to keep consumers happy. Allowing renters and hosts to create user profiles to collect information on one another was an ideal method to employ for each side to feel comfortable with submitting and accepting offers.  Additionally, both parties were able to post comments and reviews for each space;  varying  from price to actual room  descriptions and length of stay availability.  Sharing the basic platform concept  with all e-commerce businesses was a must; however discovering a method to make Airbnb unique would ensure their  continued climb to the top.

        Unlike EBay and Amazon;  when prospective renters find a place of interest, they would submit a request on Airbnb and the host would have a short period of time to respond.  If the allotted time period was exceeded, the request would expire.  All communication would be entirely within the  Airbnb network,  until such time as the request was accepted and payment was authorized. The  network would then allow exchange of phone numbers and e-mail addresses to both the renters and the hosts.   Should the request be declined , the network would deliver a notification to the renter.  Accordingly, hosts benefit by better placement on search pages as the number of acceptances increase; thus offering wider exposure.   Airbnb offers their space-seeking clientele home-style accommodations without the higher price of traditional hotel occupancy.

        Airbnb is not immune from the hazards of online websites with regard to safety or truthfulness.   Two cases of robbery and vandalism have been reported to the company, with was disclosed to the rest of the world.  Two different individuals used Airbnb to find rentals, and posing as legitimate renters they stole jewelry, clothing as well as their host’s identities.  Additionally, the properties were damaged;  holes were made in walls and doors, literally trashing these spaces causing damage in the thousands.  Adding insult to injury;  the renegade renters sent messages to their hosts congratulating them on their beautiful places while leaving high marks for others to read praising them for their effort.  These hosts obviously were upset and wanted answers as to how this could occur, but more importantly, how to prevent a re-occurrence.  

        Airbnb presently faces new challenges in order to protect itself and clientele.  In this Age of the Internet,  Airbnb must install tough restriction on background investigations for profiles.  Mandatory advance screening of prospective renters, as well as hosts and their properties is crucial and would offer a tremendous amount of aid in the consideration of offers.  Background checks would eliminate many risks and careful scrutiny of references from past landlords or hosts could  eliminate undesirable individuals from using their site.

        Airbnb would also benefit from prospective renters being permitted to submit detailed requests and subsequently equally detailed reviews.  By allowing requests to be more specific, the hosts could better serve their customers, hence increasing their bottom line as well as serving to boost tourism in the host locale.  Hosts that offer to provide transportation or event ticket to renters could increase the price of the stay to include these perks, while the renters benefit for transportation at hand allowing them to see more of the cities they are visiting.   With detailed reviews from renters, others can determine whether the space would be suitable for their specific needs, as well as any perks or offers provided by the host. Today’s consumers are understandably concerned  with product truthfulness and transparency and providing on property photographs can reveal whether a hosts is being honest and authentic.  Also, many current sites leave one to ponder whether posts are made by real customers who have actually occupied the space rather than the hosts themselves posing as former occupants. If both hosts and renters leave actual photos of before and reviews after a stay, future customers would benefit immensely, and in turn benefit all.   These aspects could increase the response to Airbnb and drastically increase its bottom line.