The airbnb in the united states research

Document Type:Research Paper

Subject Area:Economics

Document 1

Background Airbnb of the United States has a great history of how it was started in 2008 to where it is now in the global market. As explained by the inventor, Brian Chesky whose central idea was first to provide bed and breakfast to people, having been got in trouble in looking for a hotel room in San Francisco with no avail. Thus Brian Cheeky and his colleague Joe Gebbia saw this opportunity and set up the” Air Bed and breakfast” website famously known as the Airbnb. The Airbnb of United States has dramatically revolutionized the hotel industry in the United States and the world by upending the old pre-existing traditional model of the hotel industry and building a different model of how hotel room booking is made.

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Unlike the old traditional hotel system where it provides limited services, Airbnb has broadened its reach by providing more services other just a hotel room. " Furthermore, Airbnb has built an online platform where users are encouraged to review and provide feedback about their services. With these positive reviews from customers, encourage customers to utilize the services and goods offered by Airbnb thus gaining more popularity in the hotel industry. Since most of its users are travelers who want new experiences, Airbnb provides a wide range of accommodation services to book from and also based in different locations. With these wide ranges of accommodation services, most of its users find it more convenient and also meets their needs, unlike a hotel. As noted by Farranato and Franklin (2018), Airbnb has made it possible for customers to access previously inaccessible markets which in turn has increased the number of markets in those markets.

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Moreover, its hospital services as asserted by Mody, Suess, and Lehto (2018), give Airbnb a competitive edge against its competitors in the hotel industry. Since the host of the hotel is not available in the home, the guest online meets the staff who are more welcoming and helpful when the users' check-in. With the warm welcome of customers to the homes by the staff in those locations, it builds its brand in the hotel industry thus earning the customer’s loyalty. The American Hotel and Lodging Association in 2016, pushed for the imposition of taxes and regulations to Airbnb both locally in the United States and also foreign to curb competition in the hotel industry. However, as observed by Nieuwland and Melik (2018), the regulation by the government has favored short-term rentals.

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Chen and Xie (2017) and Dogru and Pekin (2017), posits that customers are more concern about the brand other the functionalities of the hotel. The main reason why Airbnb has been able to stand out in the global market is because of its ability to sell its brand. Therefore, Airbnb focuses on partnering with those hotels with a genuine brand in the market. This implies that hotels in the future should aim at building experiential authenticity to fit in the global map. Conclusion Airbnb will be there today, and in the future, therefore, it will impact on the hotel industry by upending the old hotel system. , & Pekin, O. What do guests value most in Airbnb accommodations? An application of the hedonic pricing approach.

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