Airbnb Failure

Two entrepreneurs, who decided to rent out their apartment during a conference in San Francisco in order to be able to pay the rent they could no longer afford, founded AirBnb in 2008. Today, AirBnb offers more than 500,000 rooms, apartments, and houses in over 200 countries around the world (James). The Fast Company, a company that creates a list of leaders who are inventing the future of business, lists AirBnb as the most innovative company in travel. Therefore, AirBnb is becoming more and more of a threat to the major hotel chains but also to boutique hotel owners. According to a Barclays research report, AirBnb has already overtaken major hotel companies in terms of its valuation by investors, and its growth could outpace them in actual

Take the example of the homeowner who was left with $75,000 of damages because his rented out apartment was used for a party. Such example, however, is an exception compared to the hundreds of thousands of rooms rented out via AirBnb every year. In fact, AirBnb backs up their hosts by guarantying to cover all the costs suffered, up to an amount of $1,000,000 (Airbnb). Therefore, hosts trust AirBnb, and feel reassured that they will be reimbursed in case anything gets damaged. Also, trust is created between hosts and renters through the reviews that are posted after a stay. Both parties are asked to write a review about their experiences, providing hosts and renters with a safe feeling when faced with positive reviews. In other words, AirBnb does the utmost to give their hosts and renters a safe

According to opponents of AirBnb, the company has found a business model that is largely based on evading regulations and breaking the law. For example, rooms rented out under Airbnb should be subjected to the same taxes as those of hotels and B&Bs. Regardless of these charges, it cannot be denied that the world is demanding a ‘’sharing economy’’ that is based on more people-to-people experiences. Individuals of the 21st century want to experience the city that they visit, they want to feel like a local. Staying with locals, a possibility provided by AirBnb, provides them with such a feeling. For example, if you would book a room through AirBnb, and at the time of your arrival the host is still cleaning the room, he might offer you to have a beer together in return for the inconvenience (Baker). If this were to happen in a hotel, people are more likely to disapprove of the situation and would have demanded another room. However, the personal contact and experience offered through AirBnb provides the parties involved with a different approach and perspective. An Airbnb experience is a more adventurous experience that lowers the traditional expectations that travelers would have regarding hotels. Even though, hotels are trying their best to be as personal as possible, the experience will not be comparable to an AirBnb experience. Hotels