Airbnb Research Paper

Introduction to Shared Economy

According to Belk (2014) collaborative consumption or shared economy encompasses “people coordinating the acquisition and distribution of a resource for a fee or other compensation” (p. 1579). This statement where effectively signifies the eminence of market mediation also points to the power of social network effects, which in other words is the peer-to-peer sharing supported by social technologies; which ultimately enable such a consumption to develop exponentially (Cusumano, 2015). This efficiently interprets the efforts of Airbnb to establish a persevering platform that links the supply with demand in the industry of hospitality (Zervas, Proserpio, and Byers, 2015). Therefore, Airbnb and comparable platforms can be denoted as collaborative consumption. in this report, the disruptive innovation aspect of Airbnb is discussed along with its bearing at consumer, firm, community and industry level.

Peer-to-Peer Accommodation Sharing (P2P Sharing)

Although the concept of P2P sharing and tenanting are very longstanding (Belk, 2014), contemporary P2P accommodation sharing businesses arrived on the mainstream with Airbnb in 2008. P2P accommodation sharing is presented as an innovative business models that affords unconventional solutions to tourists who desire hospitality equivalent of generic hotels. Nonetheless, the increasing development of P2P models as depicted by the, guests, listings and revenues, is indicative of the soaring adoption rate of this innovative accommodation solution amid tourists and travelers (Tussyadiah and Pesonen, 2015). Since Airbnb is the pioneer of this business model this report deliberates on its impact as a shared economy model on different participants of the said paradigm shift i.e. consumer, firms, community, and governments.

Airbnb

Airbnb labels itself as “a trusted community marketplace for people to list, discover, and book unique accommodations around the world” (Airbnb, 2016). Airbnb is basically a website that lets people rent out the spare space that can vary from a bungalow to a mattress in the living room - to travelers, like a traditional bed and breakfast. While traditional B&Bs can be enlisted on Airbnb, a set of identical lodgings are not allowed to be listed. The company’s website is to the point and take after old-fashioned accommodation reservation sites. The website is used for payments where Airbnb earns a commission from both the guest and the host (Airbnb).

In the domain of P2P accommodation sharing Airbnb is among the pioneers. Thus, it represents the rise of online business models that allow general public to access and deliver travel accommodations. Airbnb is not the sole provider in this domain, there are many companies that offer almost identical lodging services, for instance Onefinestay, 9flats, HouseTrip, Roomorama, Wimdu, HomeAway, and FlipKey. Lastly, there are other “hospitality networks” wherein tourists are offered accommodation without charge (Guttentag, 2013).