PESTEL Analysis - Airbnb

Extract

[...] Social and cultural Airbnb's global booking system works across a multitude of cultures and societies. By submitting their expectations, tenants are matched with appropriate hosts. These tenants and hosts can give feedback on their experience, and both are then given a rating based on these reviews. Currently, Airbnb hosts and tenants originate from around 34,000 cities in over 191 countries and they each have their own unique cultures and norms, which need to be understood and respected. To ensure that the company receives consistent, reliable and valuable feedback, Airbnb has set up an online community centre and discussion room which offers advice on hosting and has a “Help” section where tenants and hosts can review frequently asked questions, pose their own questions or share their experiences with others. [...]

[...] PESTEL Analysis: Airbnb I. Introduction A. Presentation of Airbnb The growing popularity of collaborative consumption has had a massive impact on how many industries around the world operate. According to Wikipedia collaborative consumption can be defined as “the set of resource circulation systems, which enable consumers to both "obtain" and "provide", temporarily or permanently, valuable resources or services through direct interaction with other consumers or through a mediator”. This collaborative consumption has become the basis of a shared economy which is defined by the same source as “An economy built on the sharing of underused assets, both tangible and intangible.” By setting up a business in which people involved with this sort of market can help reduce the amount of physical waste that is produced, and there will be an increase in our utilisation of untapped resources globally. [...]

[...] Legal By far the main legal issue facing the Airbnb business model is the need to comply with housing regulations. The website and app require hosts to agree to the terms and conditions provided by Airbnb regarding tourism regulations as well as local housing and taxation regulations. They have a dedicated legal department to address any of these matters as they arise. The company has faced many challenges during the COVID 19 pandemic, there have been reports of hosts continuing to offer accommodation in contravention of the travel restrictions in place. [...]

[...] There is an average of 2 million people staying in an Airbnb listing every night of the year. Airbnb, however, has not been spared by the massive negative impact the COVID 19 pandemic has unleashed on the world. With most countries closing their borders and even imposing travel restrictions within their borders, the tourism industry has taken a massive hit. Airbnb has lost commission from cancelled bookings and hosts have lost income which they have come to rely on. C. [...]

[...] PESTEL Analysis A. Political Airbnb is a truly global company, with listings ranging from tiny houses or apartments in out of the way villages, to upmarket homes and even castles in the trendiest of cities all around the world. This has provided the company with many challenges, as they need to be aware of the various political factors applicable in every village, city, town and country in which they operate. Some of the issues faced by the company include state housing laws and regulations. [...]