Airbnb (A) Case Solution & Answer

Airbnb (A) Case Solution

Question no 1

AirBnb should have conducted out a superior assurance to keep away from the “EJ” incident, these implementations are:

  • Requirement of more and complete profiles of the tenants and hosts and provide all the necessary measures to prescreen the visitors and hosts.
  • The EJ incident shows the carelessness of how an organization as large asAirBnb, doesn’t have calamity recovery approaches. It is liable for them to provide better client approaches and administrations. Aside from that, guaranteed insurance policies to the clients are likewise essential to execute.
  • Continuously adapt of price charged based on the rating provided by the guests.
  • Highlighting the customers’ reviews in the most sophisticated manner.

Instead of being reluctant on the EJ occurrence;AirBnb should have reacted right away. The conceivable present moment and long-term plan of activities should have been performed to prevent the aftermath. These  are given as follows: (Beck, 2016)


  • Feature all of the public connections and activities to prevent the aftermaths.
  • Providing insurance to the users to avoid the occurrence of a similar incident.
  • Notifying every host of strict action to be taken if any mishap takes place involving clients.


  • Providing sufficient and consistent preparation to the staff involved in assisting the clients and furnishing them with all the essential fundamental equipment.
  • Planning of SOPs to diminish the reaction time.
  • Planning of the CRM framework that would consequently identify the strange circumstances taking place on various platform of AirBnb, and managing them immediately.

Question no 2

The renters and hosts are the significant stakeholders of AirBnb and the trust between these two is the whole foundation on which AirBnb depends. AirBnb should work on building trust among renters and hosts by collaborating with the prescreening agency. This will assist the hosts in observing more data about the renters which they may have not disclosed on their profiles. This will assist the hosts in knowing every particular insight regarding the type of individuals they are renting out their place to and feeling more secure.

AirBnb’s reputation system is different from eBay, because in eBay, renters do not review a service but the customers rate the products based on their quality reliability. They also rate the overall services related to seller’s attitude and shipment procedure and whether the shipment was smooth and on time or not. Whereas, when it comes to AirBnb;it is a different platform which means the overall ratings of AirBnb lies on the services, quality, and entire stay experience.  More specifically, the AirBnb customer base can be narrowed to the hosts and renters respectively, whereas when it comes to eBay; it is a broad online network that almost provides very equipment which we use in our daily lives.

Question no 3

AirBnb Business Model

AirBnb is an aggregate business model. It is a broad online platform that associates with each component in the model. The biggest assets of AirBnb are the hosts and guests. Hosts put their property on rent, while renters can stay there and rate their experience. It is very important to maintain the trust level between the renters and hosts, because by doing so the company can avoid any disproportion.


AirBnb Market Segmentation

The market segmentation of AirBnbis divided into hosts, travelers and photographers. Hosts are people who rent out their spaces and have the authority of selecting the traveler of their choice. Travelers are the people who stay at the space of their choice provided by AirBnb, and rate that space in terms of quality and services. Whereas, photographers are the freelancers hired by AirBnb who are responsible for clicking aesthetic pictures of the properties to be put on rent by the hosts.

Key issues

No business model is perfect, almost all of them face different issues that can be resolved by applying different strategies. The key issues faced by AirBnb are as follows:

  • Trust Issues between the renters and hosts.
  • Traveler retention.
  • Growing competition.

How AirBnb should evolve/ the future

Every business model needs continuous changes and improvement to compete with the growing world. There are different features that AirBnb should consider in order to evolve itself further. The attraction of business towards media and mobile apps has made the entire business structure highly competitive in the market. AirBnb should evolve itself further in the following features in order to become highly competitive in the market. (Chua, 2019)

  • To collaborate with the prescreening agency to maintain trust between the renters and the hosts.
  • To launch a faster checkout process and generate insurance policies.
  • To update the review system.
  • To provide continuous trainings to its staff.
  • To maintain the quality level and to work on price strategy.
  • To increase the customer representatives services
  • To work on the options of flexible destinations

Since AirBnb has a unique worth in the market but some of its demerits have made its position low in the market. AirBnb needs to focus on aforementioned procedures to build its worthy image in the market……………………..

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