The Airbnb Firms Impact on Tourism Industry

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Table of Contents

Abstract
Introduction
Airbnb PR Campaign
Conclusion
References

Abstract

The global housing industry has been undergoing a crisis over the last few years. In some cities around the world, Airbnb is considered the biggest culprit for the decline of affordable housing. Airbnb offers short-term rentals for travelers and tourists. It provided a solution to the shortage of hotel rooms around large events. Nonetheless, despite its success, Airbnb has been faced with criticism over discrimination in some of its listings, lack of safety standards, and poor customer experiences. There are opportunities for the company to change its public image by focusing on its positive contributions to the industry. A PR campaign is essential for the company to enhance its reputation among customers. A five-year plan should enhance the perception of Airbnb and maintain its position in the global market.

Introduction

Airbnb is an American company that deals with short-term rentals and homestay experiences. The company recruits homeowners and landlords to offer their rooms for a limited time for tourists and other guests traveling worldwide. Airbnb is a broker and takes a commission from each booking (Barron et al., 2018). Founded in 2008, Airbnb aims to create a world where you can belong anywhere and where people can live in a place instead of just traveling to it. The company sought to address the issue of overbooked hotels, especially in areas with large events such as sports, political rallies, or corporate functions. Its core values are championing the mission, being a host, embracing adventure, and being a serial entrepreneur. Airbnb encourages hosts to facilitate an experience that gives customers a sense of belonging. The hosts, guests, and communities where Airbnb operates are all stakeholders in the company. Therefore, the organization must serve them well, alongside its employees and investors.

The company operates in a changing market that is constantly affected by different market forces. Airbnb has over 150 million users, 5.6 million listings, and more than half a billion guests annually in over 220 countries (Airbnb, 2022). Across the world, there are 100,000 cities with active Airbnb listings (Barker, 2022) The gross revenue for Airbnb was $48.9 billion in 2021, a 76.6% increase from $27.69 billion in 2020 (Airbnb, 2022). In 2020, Airbnb had an IPO, which determined its estimated value at $86.5 billion (Airbnb, 2022). The company is valued at around $110 billion, with a 20% market share in the vacation rental industry as of 2022 (Airbnb, 2022). The growth of Airbnb in the past decade has, however, not been short of controversy. Airbnb has been accused of contributing to the surging housing prices in cities such as Los Angeles and Seattle (Barker, 2022). Critics argue that short-term rentals are taking out permanent residences off the market. Further, there are accusations of racial discrimination against hosts and guests when determining their rental options (Barker, 2022). Therefore, the company needs to develop a strategy that helps it maintain market share while addressing the critical issues among its consumer base.

Airbnb PR Campaign

Objectives

Airbnb should embark on a five-year term to revamp its public image. First, it should focus on the essential issue of host and renter relations. There have been incidences of strained relationships with guests due to theft, terrible customer experiences, and discrimination. Airbnb is built on the principle of customer engagement and the reputability of its listings. The organization should hence embark on a program to promote safety and assure customer comfort. To address the problem of discrimination, Airbnb must cultivate trust with minority groups. This is possible through the promotion of diversity in its hiring policies (Barker, 2022). Further, hosts and guests should be encouraged to engage and interact with each other adequately beforehand to develop good relationships. Airbnb can broadcast the positive stories from its most loyal customers to change its unfavorable perception in public. Therefore, the main objective of the PR campaign is to enhance the image of the business among its key stakeholders.

PR Campaign

Social media offers an excellent platform for Airbnb to influence its image. The company can contact its most loyal and profitable hosts and collaborate with them in developing a diversity campaign. Airbnb hosts and guests worldwide will be encouraged to share their experiences through social media posts (Barron et al., 2018). This will change the perception of discrimination among its user base. Positive reactions should be the focal point of Airbnbs advertisement campaigns and the pursuit of a larger market share. Further, Airbnb can liaise with hosts from minority communities and engage with them on how best to boost their positive ratings and visibility on the website. The company leaders should incorporate diversity and inclusion into its mission statement and values. An Airbnb is for everyone ad campaign should help alleviate some of the stereotypes and negative perceptions of hosts and guests using the website. The advertisement should focus on creating a positive perception of the company, which can help enhance its revenues.

Airbnb should appeal to lawmakers and the public regarding the positive impacts of its services. In recent years, affordable housing has evolved into a critical issue in many urban centers worldwide. Airbnb is at the center of this storm in several US cities, giving the organization a negative image. It is important to shift the companys opinion by focusing on its impact on individuals and distancing itself from association with lobbyists and corporations. Airbnb should concentrate on the personal stories of hosts and guests to appeal to lawmakers regarding their impact on the industry. Most importantly, the message should be that Airbnb is providing real solutions to a real problem impacting travelers across the world (Barron et al., 2018). It is vital to prove that Airbnb has positively impacted vacationers and improved the travel experience. This should be the selling point of their appeal to lawmakers and groups focused on legislation to regulate the temporary housing industry. The public relations department can motivate users of Airbnb to post images of their stay and provide information on the impact on their overall experience.

Airbnb has been a great boost to the tourism industry in many areas. A wider variety of affordable and available holiday listings has significantly benefited local economies (Barron et al., 2018). The Airbnb campaign should shed light on these benefits while debunking the claims of their negative effect on affordable housing. The company should provide compelling statistical evidence to prove that its impact on local house prices is less significant than portrayed in the media. Moreover, Airbnb should strive to show that the gains from tourism outweigh the potential losses caused by the potential shortage of permanent rentals. The organization might seek lawmakers attention to establish a compromise on temporary housing laws. For example, Airbnb can include limits on the number of days in a month that a renter can list a property on the website. Further, the prices of listings should be tailored to a specific range that reflects the accurate market value of housing. The organization should conduct extensive research on house prices across the world and identify the most appropriate price range for each region (Barron et al., 2018). Airbnb should focus on its global impact on travelers and the possible consequences of issuing strict bans on short-term rentals. Ending the wrangles between the company, legislators, and homeowners will create a stronger foundation for the PR campaign to succeed. Positive stories from renters will create an emotional appeal that will turn the opinion of legislators in Airbnbs favor.

Airbnb should incorporate a submission section where travelers can post their images, videos, and stories of their experiences across the globe. The messages should highlight the positive impact across multiple cities and how it has impacted the lives of local communities. Airbnb can also hire travelers whose sole responsibility is to spread positive PR for the company. It should focus on travelers with a significant social media following so that the message can reach as many people as possible (Barron et al., 2018). Additionally, Airbnb should increase engagement across its social media platforms as a way to improve its public perception. A positive social media campaign can serve to shift the opinions of lobbyists and lawmakers, especially in the US. A comprehensive social media program should indicate that Airbnb is aware of its current issues and provide an outline of the solutions and their proposed implementation timeline. The company can also work with influencers to change the way customers and other stakeholders view the business. The influencers can work together with travelers to highlight important issues that potential clients should view.

Conclusion

Airbnb has grown significantly over the last decade and provided real solutions for travelers worldwide. Its impact on the industry has been felt in various sectors of the economy, mainly tourism and housing. The issues facing the company currently have real solutions that can be implemented quickly and efficiently with the cooperation of all stakeholders. Airbnb strives to be a customer-friendly organization that curates a good holiday experience for everyone, everywhere. Therefore, it should shed light on its positive contributions to society and offer a framework to address its most pertinent issues.

References

Airbnb. (2022). Airbnb fourth quarter and full-year 2021 financial results. Airbnb Newsroom. Web.

Barker, G. (2022). The Airbnb effect on housing and rent. Forbes. Web.

Barron, K., Kung, E., & Proserpio, D. (Eds.). (2018). The sharing economy and housing affordability: Evidence from Airbnb. Association for Computing Machinery. Web.

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