Readcase 2 Airbnb In 2018 In Your Connect Textbook ✓ Solved

Readcase 2 Airbnb In 2018in Your Connect Textbookin The Accommoda

Read “Case 2: Airbnb in 2018” in your Connect textbook. In the accommodations market, Airbnb appears to have a significant advantage over its competitors as it relates to regulations affecting the operations of its business. Develop a business strategy that will allow Airbnb to meet local, state, and international regulatory requirements and motivate individuals to benefit from participating in this space of the accommodations market. Address the following questions: How can Airbnb ensure the ethical treatment of consumers? Should there be a separate strategy for the international component of their business model?

Sample Paper For Above instruction

Airbnb, as a disruptive innovator in the lodging industry, has revolutionized the way consumers access short-term rentals, providing both opportunities and challenges across various regulatory landscapes. To sustain its growth and reputation, Airbnb must craft a comprehensive business strategy that aligns with local, state, and international regulations while fostering consumer trust and participation. This essay explores strategic approaches to regulatory compliance and ethical treatment, emphasizing the need for differentiated international strategies.

Developing a Regulatory Compliance Strategy

Airbnb’s primary challenge lies in navigating a complex web of regulations that vary significantly across jurisdictions. A proactive approach involves constructing cooperative relationships with regulatory authorities at every level—local, regional, and international. Establishing dedicated compliance teams that understand local laws concerning zoning, licensing, taxation, and safety standards is critical. For instance, in cities like New York and Paris, regulations restrict short-term rentals, making compliance non-negotiable (Guttentag, 2019). Airbnb can facilitate compliance by implementing verification processes for hosts and properties, ensuring adherence to legal standards, and paying requisite taxes to local governments.

Furthermore, adopting a transparent communication strategy with regulators and the public can enhance Airbnb’s reputation as a responsible corporate citizen. By actively participating in policymaking discussions and advocating for clear, balanced regulations that protect consumers and support industry innovation, Airbnb can shape regulations favorably while maintaining operational agility.

Motivating Participation and Ensuring Ethical Treatment of Consumers

Ensuring ethical treatment of consumers involves maintaining transparency, safety, and fairness across the platform. Airbnb should implement rigorous guest screening protocols, clear communication of policies, and dispute resolution mechanisms. Offering customer support in multiple languages and accessible complaint procedures can bolster consumer trust. Additionally, providing transparent pricing, including all fees upfront, prevents deceptive practices that could harm consumer confidence (Zervas, Proserpio, & Byers, 2017).

Educating hosts and guests on their rights and responsibilities fosters a culture of respect and safety. Airbnb can also introduce measures for guest verification, reviews, and ratings to create accountability. Ensuring data privacy and adhering to international standards such as GDPR is vital for protecting consumer information.

International Strategy Considerations

The international component of Airbnb’s business entails unique challenges, including diverse cultural norms, legal environments, and language barriers. A separate international strategy should emphasize localization—tailoring services to fit regional preferences, customs, and legal requirements. Developing country-specific compliance frameworks and partnering with local authorities can facilitate smoother operations. For example, in countries with strict hotel regulations, Airbnb might collaborate with governments to develop licensing schemes that legitimize short-term rentals without undermining existing hotel industries.

Additionally, culturally sensitive marketing practices and multilingual support systems can help build trust and engagement with international users. Recognizing and respecting local customs and consumption behaviors ensures sustainable international growth and minimizes conflicts with regulatory authorities.

Conclusion

Airbnb’s continued success hinges on its ability to navigate complex regulatory environments ethically and effectively. By designing a comprehensive compliance strategy that fosters collaboration with regulators, implementing robust consumer protection measures, and developing tailored international approaches, Airbnb can sustain its innovative edge. Ethical treatment of consumers through transparency, safety, and respect will not only enhance brand reputation but will also encourage more hosts and guests to participate actively in the sharing economy. A nuanced, region-specific international strategy is essential to adapt to diverse legal landscapes and cultural contexts, ensuring long-term growth and sustainability.

References

• Guttentag, D. (2019). The Airbnb effect: The impact of short-term rentals on cities. Tourism Management, 69, 13-20.
• Zervas, G., Proserpio, D., & Byers, J. W. (2017). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Journal of Marketing Research, 54(5), 687-705.
• Farronato, C., & Fradkin, A. (2018). The impact of Airbnb on house prices and rents. NBER Working Paper Series, No. 25431.
• Cohen, S., & Muñoz, P. (2019). Regulation and growth in the sharing economy: The case of Airbnb. Journal of Business Ethics, 157(2), 435-448.
• Oskam, J., & Boswijk, A. (2016). Airbnb: The sharing economy and how to regulate it. Journal of Tourism and Hospitality Research, 16(4), 434-448.
• Zhao, H., & Kim, K. (2019). International expansion strategies of Airbnb: Challenges and solutions. International Journal of Hospitality Management, 76, 99-109.
• Samet, R., & Lee, H. (2020). Consumer protection in the sharing economy: An Airbnb perspective. Business & Society, 59(1), 121-150.
• Guttentag, D. (2019). An analysis of Airbnb’s regulatory challenges. Annals of Tourism Research, 77, 102-115.
• Liang, T., & Huang, J. (2021). Localization strategies for international sharing economy platforms. Journal of International Business Strategy, 21(2), 150-167.
• Lee, S., & Clark, B. (2022). Ethical marketing in the sharing economy: The case of Airbnb. Journal of Business Ethics, 174(3), 419-434.