Introduction
Airbnb is one of the startup businesses changing the world today. It is a partnership business between Joe Gebbia, Brian Chesky, and Nathan Biecharczyk. It is an online platform where homeowners (hosts) rent some rooms or apartments to travelers temporarily. It is founded on a sharing economy aspect, where hosts allow travelers or visitors to pay and spend time with them. The idea developed in 2008 when the partners wanted to collect money to afford rent. By 2011, the demand increased, pushing them to start it as a larger business, and in 2020, it became public. Today, the business operates in over one hundred and eighty countries and has posed huge competition to hotels.
Research Details
Airbnb is changing the world today due to several reasons. The business has improved transactions by making them safer and quicker. When a client books a room or apartment, the service providers keep the money until both parties are satisfied. It gives visitors more comfort and security because they are assured that in case of issues, they will be resolved. They would pay using credit cards and other online platforms, thus becoming quicker. The business is also changing the world by allowing travelers to give reviews informing potential guests (Tran & Filimonau, 2020). Previously, the vacation rental sites were managed by the owners. Guests would rarely leave comments, especially if they were negative. With Airbnb, the hosts do not own the listing on the website. Thus, guests give genuine and valuable feedback that helps other travelers; more so, it allows hosts to gather complaints faster and better push them to make changes to avoid future travelers from avoiding them. Better feedback transparency also pushes the hosts to meet the guests’ needs and preferences, giving better services.
Airbnb business is also changing the world as travelers access more information enabling them to make informed decisions. When guests visit the website, they find pictures, locations, prices, and other necessary amenities. They also communicate with the different hosts to ask questions (Dolnicar & Talebi, 2020). For example, one would ask the house’s location from the city’s central business district or whether they could carry their pets. The availability of this information before payment makes the guests make the right choices and understand the hosts’ expectations. More so, genuine reviews are available, where the guests read them to determine if the host is a good person. Notably, the hosts’ attitudes, rules, and interactions play a huge role. The travelers are well-informed about the hosts before moving into the rooms, eliminating chances of dissatisfying services. It is a revolutionary idea because it gives guests more bargaining power regarding their expectations. Moreover, the rooms allow the guests to move with their families and pets, unlike hotels where these are challenging. The business has yielded many benefits to users while the costs are lower than hotels, thus changing today’s vacations and the hotel industry.
The hotel industry has also developed due to Airbnb because of guests’ home away from home feeling. Unlike traditional hotels, Airbnb has more spaces for less money. In a hotel setting, families must book several rooms to be comfortable, while in Airbnb, they are accommodated according to their needs. For example, if a family is huge, they book a room with more space without needing some members to spend elsewhere. The guests also get the homely feeling because they have kitchens, washers, dryers, and other amenities (Gunter & Önder, 2018). They choose to cook their meals and clean laundry or get the services in the nearby hotels. However, in typical hotels, the guests fully depend on the hotel attendants. They cannot cook their meals because the management controls their stays. Feeling home away from home feels great, giving the guests better experiences and paying less. Moreover, Airbnb rooms are located in the neighborhoods, allowing the guests to have friendlier environments. Most of the hotels are located inside the city, where newcomers strain to access restaurants, markets, and other amenities. Also, their safety is not guaranteed since the hotel is not entirely in control. Airbnb has eliminated this problem by ensuring that the rooms hired are strategical. Travelers access fun, shop, and interact with community members. Their safety is also assured because the host is responsible, and in case of accidents, negative reviews would be written, making other travelers avoid the host. Therefore, Airbnb has changed today’s travel business because travelers access more while paying less.
Why the Business Interested Me
I was interested in learning about Airbnb because it entered the market recently but has posed huge threats to hotels. The partners developed the idea in 2008, and by 2011, the demand for the rooms was higher than that of high-end hotels such as Hilton. They started it due to financial constraints, but it later developed and changed the entire industry. Today, most people prefer to spend their vacations and have pictures in Airbnb than hotels. One of the reasons for this is that the business focuses on users’ experiences. Firstly, using the website is easy, and in case of questions, support is available. User experience is prioritized by allocating low costs and meeting all clients’ demands and preferences. Hotels lacked these aspects and only attracted wealthy people. Airbnb serves all users and gives great experiences. Therefore, I was interested in Airbnb because it has not been in the market for long but has posed significant competition in the industry.
I was also curious to learn about Airbnb since they are popular today. On social media platforms, people of all kinds discuss the rooms. Most of the comments are positive as people refer others to the rooms they spent their days. Increased convenience and better prices have empowered even the low-income earners to travel and go for vacations. Influencers and celebrities also hire the rooms for their photoshoots. Most of them provide the room tours explaining their joy and happiness about the services. I have seen comments claiming that Airbnb represents the Pinterest app where guests enjoy the stay and learn about decorations and turning simple spaces into homes. These rooms’ popularity is so high that I got curious to understand how they operate. Besides, many articles explore how this business has developed the hotel industry, pushing other players to adjust.
References
Dolnicar, S., & Talebi, H. (2020). Does hosting on Airbnb offer hosts vacation-like benefits? Proposing a reconceptualization of peer-to-peer accommodation. Journal of Hospitality and Tourism Management, 43, 111-119.
Gunter, U., & Önder, I. (2018). Determinants of Airbnb demand in Vienna and their implications for the traditional accommodation industry. Tourism Economics, 24(3), 270-293.
Tran, T. H., & Filimonau, V. (2020). The (de) motivation factors in choosing Airbnb amongst Vietnamese consumers. Journal of Hospitality and Tourism Management, 42, 130-140.
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