In order to be successful in sharing economy, it is important to develop a style of business that’s built on trust, transparency and authenticity. Airbnb’s Sharing Economy success is due to a number of factors. Airbnb was the first to introduce a completely new form of accommodation, allowing hosts and guests to exchange spare rooms, or entire houses, on a peer review digital marketplace. The company is growing at a rapid pace and recently was valued at $30 billion, making them the largest hotel group in the world without owning any hotels. Airbnb benefited from the increasing use of smartphones, and the decrease in technology costs. It provided an opportunity for people to instantly share resources. A homeowner who has an extra bedroom could rent it out. Sign up on the platform to begin offering the service. The user can then rent the space. Airbnb is also the intermediary that hosts use to reach guests. Airbnb earns revenue in two ways. The company will charge hosts a commission of 11% for each booking they make through their platform. They also charge travelers a transaction fee equal to a percent on every confirmed booking.
Airbnb’s expenses are not related to owning and operating real estate properties. Instead, they are those of a technology business. Airbnb’s costs were not related to real estate or operating properties. Instead, they were a technology-based business. Airbnb changed the experience of consumers. They thought guests wanted a greater sense of belonging and a stronger relationship with hosts. The guests will feel at home if the hosts make them feel like residents and guide them to lesser-known secret locations. Airbnb is a leader in the content category. The stories section on the Airbnb website will give users a better understanding of the lives and stories of guests and hosts. These stories aim to engage the reader and develop an emotional bond.
I would suggest that Airbnb invest more money in R&D to find ways to expand beyond the bed-sharing business. The company should expand its market share as it will face aggressive competition from other companies. Airbnb, which is currently valued higher than most hotels and asset-based businesses, is also a great advantage. Airbnb should be able to offer their customers more than just the bedroom. This will make their stay more memorable. Airbnb should spread out more to other parts of the world, to compete with their competition in as many areas. Airbnb’s biggest weakness is that it doesn’t ensure their customers stay in safe areas or are hosted by safe hosts.
You should not let strangers stay overnight in your home. AirBnB customers are more likely to choose hotels because of the risks associated with AirBnB. These include theft, property destruction, and kidnapping. Most insurance companies do not cover AirBnB hosts. AirBnB could prepare an insurance plan that is comprehensive and can reduce the risks for the insurers. AirBnB should do more to make the experience of their customers safer. They can do this by conducting background checks for both the host and customer. Provide insurances or incentives to protect customers against such inconveniences as theft or loss.