Company Case Airbnb: Making Hospitality Authentic
- Every service business has four essential characteristics such as inseparability, intangibility, variability and perishability. Airbnb operates in the hotel industry, and here services are intangible. Hence, the organisation ensures that customers receive high-quality services. Standardisation is maintained as well. Services offered by other hotel chains are not similar to the services offered by Airbnb. The entire hospitality experience is unique. Hence, Airbnb ensures inseparability. Again services are perishable because customers can rent homes only after connecting to the online marketplace. Lastly, variability exists because Airbnb is making efforts towards improving the experience of business travellers as well as leisure travellers.
- The Service-Profit Chain concept is mainly about establishing relationships between customer loyalty, profitability, and productivity and employee satisfaction. Airbnb focuses on creating valuable experiences for customers, and this is turn, leads to customer satisfaction. For instance, Airbnb already offers a hospitality experience which is unique. Customers usually receive basic hotel services, and most of the services are predictable in nature. Airbnb ensures that buyers and sellers connect with one another in the online marketplace, and everyone receives an authentic experience. Guests are offered services where they can easily connect with the local culture of their chosen travel destination. This, in turn, has helped the business ensure its profitability.
- The services offered by major hotel chains across the world are often predictable. Notably, luxury services are common. However, Airbnb ensures that their arrangements are unique and lodging and the overall tourism experience stay memorable. For instance, hosts are urged to offer guest services including walking tours, airport pickup so that it can strengthen the relationships with guests. This, in turn, motivates big hotel chains to form partnerships with Airbnb. It has managed to build a unique image. For instance, the company seeks to create proximity between people and culture so that it can fulfil a greater mission. It seeks to establish world peace by making people understand each other through unique travel experiences.
- Competition is not a serious threat to Airbnb. It has managed to emerge as one of the most versatile accommodation provider. It has managed to increase the number of hotel rooms. The competitors of Airbnb have formed partnerships with other larger firms, and these firms lack a clear vision. Hence, it can be stated that Airbnb is moving towards a monopoly. None of its competitors can keep with the diverse services and unique travel experiences offered by it. Nevertheless, challenges in operating in the travel industry exist and satisfying the guests is not always an easy task for the company.
- Airbnb has the capacity to turn into a monopoly business due to its unique services. It has the potential to become as valuable as or more valuable than Hilton. It has already received the status of a home-rental giant because it has dozens of acquisitions like Hilton. The company has consistently focussed on expansion in the tourism market despite challenges. It can continue to grasp market share, and it has managed to dominate new markets and customer groups worldwide.