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Have Text, Will Travel: Can Airbnb Use Review Text Data to Optimize Profits Case Solution & Answer

Have Text, Will Travel: Can Airbnb Use Review Text Data to Optimize Profits Case Study Solution

Introduction/Background

Airbnb is one of the people-to-people platform for the people,by the people and of the people that has been created for the purpose of helping people all aroundthe globe.It was founded in 2008 with the aim of connecting the owners of villas, apartments, condos, homes and even castles to the prospective renters. AirBnb offers intermediary services for lodging and staying service between the host andguest. It has challenged the notion of professionalism in hospitality. The three key attributes of experienced provided by AirBnb includes amenities, location and host.The company has all of its listed properties on its website, as opposed to market rivals who has been engaged in operating on the number of rental platforms. This made the company ideal candidate to collect large amount of data text with the use of web-scraping tool, hence providing an opportunity to company to gain competitive edge on its fastest growing competition. The website is based on the rating system where the guest and host are rated on performance and listing respectively.

Statement of the Problem

The online community marketplace have been serving hundreds of thousands of would-be-hoteliers popping throughout the globe with the intent of renting their own apartments and homes. The goal of aspiring hosts was to use the website of company to attract the guests willing to pay high rates to stay in their homes for the shorter period of time whereas the company aims at improving the customer review performance so that it would turn into profit returns. The company is concerned about improving the host performance and satisfaction so it could reap the benefits of ongoing renter and host fees. Additionally, the issue at hand is that the text mining is designed to take a look over the phrases and words of individual and when used out of context, this could alter the data. The usage of positive and negatives words in one sentence could skew the data, hence making method of mining inaccurate and unreliable.

Analysis

Internal analysis

Airbnb have altered the marketwith significant means with strong public image and brand value on national and international level.Also, the HR&A study showed that host and guests utilizing AirBnb contributed $56 billion in total spending to economy of San Francisco. It is operational in more than 192 countries. It has utilized and taken advantages of shared economy business model. The advantage of AirBnb includes wide selection, free listing, and customizable search, protection for guests and hosts and additional services.

In contradiction to its strengths, the business model of the company is easily imitable. Also, the hoteling industry as market rivals is damaging the concept. The company confront with the issues from violating various housing laws and regulations. The dependency of company over quality provided by hosts could damage the reputation of company to greater extent.

The company could exploit the opportunity of expanding the business operations in emerging markets. It could take advantage from the increasing demand for the authentic vacation rental.Also, the company could expand the product by offering car rentals, travel guide and so forth.

It is to notify that the Airbnb has many challenges in the future ahead including thecompetition from business using a same sharing economy as Airbnb model would be increasing.Also, Airbnb should have to look at the needs of the customers, by starting to branch out intoother product offerings including experiences.The expectations of tourists are rising as the vacation rental choice becomes more about travel experience than about lodging (Johnson, 2020). The top trends which shapes the vacation rental industry of US includes rent demand, professional management services, population shift, market opportunities and technology disruption (Team, 2019). The model can be seen in Appendix A……………………………….

 

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