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Airbnb Case Study

Good Essays

Political Factors
AirBnB gives platform for people to offer and rent their homes, apartments or rooms to strangers.
But the company has run into legal issues. Some locations available to rent don’t follow stat housing laws and regulations.
In some states, an owner must also live on the property to legally rent apartments for short period of time. Additionally these locations are required to pay hotel or tourist taxes. AirBnB has faced fines and court cases in Barcelona, New York. AirBnB needs to ensure they are following each state’s housing guidelines.
Economic Factors
With recent economic crisis (2008), people globally tend to spend less of their money on travel. Regarding the hospitality industry, they would rather look for cheaper accommodation or room. With the crisis also affecting companies, business travelers are keener to find cheaper rooms or apartments to limit their changes.by offering cheap rents, AirBnB is offering an alternative solution to people and businesses, and is a good response to the crisis.
The crisis led to a new concept of public sharing developed all over world. AirBnB has offered jobs to “hosts” – people who periodically offer their homes to guests. For cities that lack hotels and motels, this type of service is beloved.
Social Factors
In AirBnB’s hosts offers their homes to guests in exchange for money. Visitors will document their experience online.
Hosts will also share their experiences. The company also has an “Experiences” initiative. Hosts offer their homes to guests in exchange for money. Visitors will document their experience online.
Technological Factors
AirBnB relies on technology. It has a high dependency on technology. AirBnB’s business is done online ad managed online. Visitors book rooms through site or application. Abad review will mean that host will have a difficult time with future bookings.
Without technology, rooms can’t be booked. Hosts can’t be contacted. And AirBnB wouldn’t work as it works today.

Legal Factors
In many countries in the world, AirBnB has been confronted by national laws keeping people from renting their home for short stays, e.i less than 30 days. According to New York Attorney Eric, the “hotel renting” is illegal in America and this

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