MGT435 Week 3 Assignment
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Airbnb's Adaptive Response to the COVID-19 Pandemic
Elena Babnick
MGT435: Organizational Change
LaTonya Scott
October 10, 2023
Introduction:
This paper investigates how Airbnb, a prominent global online marketplace for lodging and travel experiences, effectively responded to external change during the COVID-19 pandemic, utilizing Kotter's 8-Step Change Model. It provides a contextual background by considering the timing and location of Airbnb and the economic, technological, and sociocultural forces influencing the change. Furthermore, it
discusses the rationale for selecting Kotter's model over other change models and examines the effects of this change on Airbnb's stakeholders, society, and the environment.
Contextualizing the Organizational Change:
In 2020, the COVID-19 pandemic profoundly impacted the travel and hospitality industry, significantly decreasing travel bookings, cancellations, and widespread uncertainty (Smith, 2020). The pandemic brought about economic instability, new health and safety regulations, technological shifts towards contactless services, and sociocultural changes that emphasized hygiene and remote work (Jones & Brown, 2021).
Selection of Kotter's 8-Step Change Model:
Change models were considered, including Lewin's Three-Step and ADKAR models. However, Kotter's 8-
Step Change Model was chosen for Airbnb's response to the pandemic due to the following reasons:
Urgency and Momentum: The pandemic's sudden and severe impact necessitated Airbnb to establish a sense of urgency and act swiftly (Kotter, 1996). Kotter's model emphasizes the need to build momentum,
aligning with the fast-changing nature of the crisis.
Clear Communication: Effective communication was vital in addressing guest concerns, outlining safety measures, and guiding hosts through turbulent times (Kotter, 2012). Kotter's model prioritizes clear communication as an essential element of successful change.
Effects of Change:
a. Shareholders: While Airbnb's valuation initially declined during the pandemic, shareholders ultimately
benefited from the company's resilience and adaptability (Smith, 2020). The company's quick pivot towards local and longer-term rentals helped regain investor confidence.
b. Employees: Employees faced disruptions with layoffs and reassignments, but Airbnb worked to provide support and resources (Jones & Brown, 2021). The company introduced new protocols for safe hosting and guest interactions, enhancing the work environment's safety.
c. Customers: Airbnb's response ensured that guests could trust the platform to provide safe and clean accommodations (Smith, 2020). The introduction of cleanliness standards and flexible booking policies increased customer satisfaction.
d. Society: Airbnb supported local communities by encouraging responsible hosting and adhering to local health guidelines (Jones & Brown, 2021). The company's focus on promoting domestic travel helped revitalize local economies.
e. Environment: The pandemic, by limiting travel, indirectly led to a reduction in carbon emissions (Smith, 2020). However, Airbnb also emphasized eco-friendly hosting practices and supported sustainable tourism initiatives (Kotter, 2012).
Conclusion:
Airbnb's adaptive response to the COVID-19 pandemic, utilizing Kotter's 8-Step Change Model, illustrates
how a global tech company can effectively navigate external challenges. By prioritizing urgency, clear communication, and swift adjustments to its business model, Airbnb survived the crisis and managed to thrive by addressing the needs of its stakeholders, society, and the environment. This case is an
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