Preview

Airbnb - a Failure of Corporate Communication

Good Essays
Open Document
Open Document
1875 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Airbnb - a Failure of Corporate Communication
AirBnB – Case background

AirBnB is a website that was founded in 2007 by Joe Gebbia, Brian Chesky, and Nathan Blecharczyk. AirBnB’s story begins in the living room of Joe and Brian's San Francisco loft in 2008.
The name AirBnB stands for “Air bed and breakfast”. AirBnB is a community marketplace that allows property owners and travelers to connect with each other for the purpose of renting unique vacation spaces around the world.
It is an alternative to a hotel giving the user a more fun, cheaper and local experience. AirBnB has everything from private homes to private islands in over 16,000 cities in 186 countries. It has rooms, couches, homes, islands, castles and an airplane sticking out of a tree. Famous people like Conan O'Brien rent out their homes as well. With 1,000 more new listings a day, a number likely to accelerate to 3,000/day as it expands in all the major tourist markets. AirBnB is expected to surpass Hilton (600,000) in number of rooms by 2012 with their current growth rate. AirBnB also offers a free iPhone and iPad application for booking accommodation on the run.
With AirBnB's over a billion-dollar valuation already it is every entrepreneur’s dream of a perfect start-up.

Things seemed too good to be true for the San Francisco based company. The company was largely build on social media, since the users engaged with the page through Facebook and Twitter.
AirBnB had a social crisis management issue in the summer of 2011, caused by a lack of corporate culture and values. AirBnB has become a classical example, showing the importance of social media in reputation management, especially in a crisis. AirBnB was caught off-guard by a social media storm after clients had their property vandalized.
A member of AirBnB known as EJ posted on her blog about a bizarre and brutal destruction of her home by someone who rented her space through AirBnB. Her things were stolen, her identity documents photocopied and her apartment destroyed. After the

You May Also Find These Documents Helpful

  • Powerful Essays

    In July 2010, Alex flew to Honolulu, Hawaii to supervise the construction of two additional bedrooms to a house he owns there. He leases this house to a couple, and they operate the house as bed and breakfast (B&B). Those two newly constructed bedrooms were an addition to their B&B.…

    • 1142 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Unit 2 E-Commerce P2

    • 773 Words
    • 4 Pages

    The website also makes easy for the customers to book the rooms online , to make their travel plans easily.…

    • 773 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Facebook has proven to be a successful marketing tool in allowing companies to advertise to consumer that find the related products interesting and relevant. With social media being an important part in our life, it’s no wonder that companies use Facebook to reach its target audience. “Whilst, some may argue, that adopting a ‘pay-to-play’ marketing strategy may have driven some users away, Facebook is in many ways still a valid and valuable marketing tool.” (Corbett)…

    • 476 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Bus 210 Appendix B

    • 351 Words
    • 2 Pages

    As the entrepreneur I would have to come up with enough money to locate a place to buy I wouldn’t want to rent because it would be more profit having my own space, Plus I have to buy tables and chairs as well. I would have to contract people that know how to cook and find places I can buy the food at a cheaper price. I would also have to find a place I can rent or buy my own linen for the tables and chair covers. Music is a must also or the own customer can provide that.…

    • 351 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Lastly, some people will argue that the Airbnb regulation can have a negative impact on homeowners, travelers and the community alike. The supporters of the Airbnb claim that the ordinance will add more taxes and fees which may affect the income of thousands of homeowners who have a chance to make some extra money through short-term rentals (2). For many hosts, the money from Airbnb is the single source of income so it helps them to make their family budget. In addition, homeowners who rent their homes through Airbnb call the city has numerous ordinances to protect its residents. For example, the city of Chicago has noise, trash, parking, occupancy ordinances, and these rules only need to be enforced for all properties. Also, Airbnb operators show that their guests support local business by staying in areas, with significant spending they generated a great economic impact in Chicago, and a large number of visitors can animate the city, so it will not seems like ghost town when Chicago’tourist traffic is low (1).…

    • 319 Words
    • 2 Pages
    Good Essays
  • Good Essays

    One business that did not realize the power of social media was a KFC-Taco Bell restaurant that had developed a rat infestation. The most popular video covering the KFC-Taco Bell incident on YouTube received 2,644 responses and two video responses and this video sparked comments such as “No more KFC for me” and “when a business allows for such rodents to run freely, the message to us consumers is consumers come last” (3). This media crisis could have been handled better if KFC-Taco Bell had utilized social media early to clarify the incident and slow down the viral video spread. Therefore, media and especially social media is crucial for these businesses plagued with bad publicity to help overcome these stories and help regain their reputation and trust from society. This may be easier for bigger organizations rather than smaller organizations, because it is easier for bigger organizations to get their message out and society can more easily relate to previous positive perspectives they may have had with the firm. Therefore, it is crucial for businesses to be on top of media to help…

    • 827 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Airbnb is taking numerous steps to prevent discrimination amongst host and guest after being accused by several renters stating they had been discriminated due to race by the host. Airbnb has committed to making several changes including: elimination of same day relisting, non-screening option through Instant Book(ing) function, provide online bias training for hosts, and hire a more diverse workforce. These changes will be enforced for property owners/ host to affirm that Airbnb will not discriminate bases on race, religion, national origin, disability, sex, gender identity, sexual orientation or…

    • 90 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Share your idea with friends and relatives. They will help you know if demand really exists. When you are sure that demand exists, you will be on a safer side to start your business. You can now go ahead and rent a space for this purpose.…

    • 481 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The results reveal a darker, more pessimistic lining to the social business cause: most organizations are not truly social, just flirting with social. Many are playing with and even finding some success with a smattering of social tools, but using and integrating social media into most aspects of their day-to-day business is still an evolutionary leap some years away for most.…

    • 796 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Airbnb Ban Case Study

    • 148 Words
    • 1 Page

    Hi Jane, you have precisely described the Airbnb ban with ethical theories. I agree with your analysis of all theories of justice. But according to Rawls theory of justice we must consider the consequences of Airbnb ban for the owner, renter, neighbors, community, and accommodation businesses. It gives the benefit to the owner in the form of extra money and renter are getting cheap place to stay. But at the same time, it’s hurting the accommodation businesses which are hotels, motels, and lodges. Airbnb damaged the hotel business in big cities and it could cost an income loss to the hotel employee in form of reduction in working hours, or layoffs. With being that said, where Airbnb is benefiting individual owners and renters, it is also causing…

    • 148 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Linkedin

    • 402 Words
    • 2 Pages

    It’s a serious business social networking website. It provide resume-posting by more than 100 million professionals and corporate types.…

    • 402 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Airbnb creative director

    • 788 Words
    • 4 Pages

    Airbnb is known for several reasons as a creative organisation. First of all it invented the concept ‘peer-to-peer accommodation’, so the base of the organisation is already creative (Guttentag, 2013). Then the company worked out its idea in a personal and refreshing way, which is easily found back in the webpage design. For example Airbnb wants to provide their guests a social experience instead of a search experience at their website (Kuang, 2012). Next Airbnb distinguishes itself from similar peer-to-peer accommodation companies by providing professional photographs of the houses, taken by their own team of professional photographers. (Airbnb, 2013c). Besides this, co-founder Brian Chesky is even literally living on Airbnb, purely to discover negative user experiences. (Rapp, 2011). We think this is a very creative way to discover the dissatisfiers of a company.…

    • 788 Words
    • 4 Pages
    Satisfactory Essays
  • Best Essays

    Uber Strategy

    • 4745 Words
    • 19 Pages

    Imagine you are a MBA student at work in downtown Chicago who just got off an endless two hour conference call at 5:30pm and realize that you are most likely going to be late for a midterm which starts at 6:00pm unless you can get a cab. However, you know the chance of getting a cab will be next to impossible at rush hour, so you pull out your iPhone and order an Uber, which promises to arrive in 10 minutes or less. It arrives; the driver welcomes you by name, and provides a peaceful ride to Kellogg for the midterm. This is an Uber experience and it’s all for about 1.5 times the cost of a cab.…

    • 4745 Words
    • 19 Pages
    Best Essays
  • Good Essays

    Airbnb Case

    • 973 Words
    • 3 Pages

    There are several key issues that Airbnb faces throughout the case. The biggest key issue that the company faces is maintaining the trust of their market participants, both hosts and guests. It became hard for hosts to trust who they were renting their room, apartment, or house to after several previous hosts had their places destroyed and valuable items stolen. It also became hard for guests to trust the room that they were renting after several previous guests were unhappy and mislead by the host. Both resulted in the reputation of Airbnb to significantly decrease and they began to lose customers fast. The other key issue that Airbnb faces is their online reputation system. There is a lot of missing information in their online system that makes for worried and discomforted customers. Users on the Airbnb site would have incomplete profiles, some with even only a first name. The company also had a weak consumer review system and it lacked common features. In their system they even penalized hosts that turned down reservation requests for a posted room by making that host appear lower in the search results. This makes no sense as a host should be able to reject a guest’s request if he or she feels uncomfortable with that guest without a penalty. In addition, the company’s online system did not prescreen hosts or guests at all and they don’t provide insurance for hosts or guests. There are a lot of key issues that Airbnb faces in this case, critical decisions need to be made immediately to build up the company’s reputation and regain people’s trust.…

    • 973 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Social media has become increasingly popular among people of all ages due the fast advances of technology. Businesses have also found that a part of having a good business to be savvy with social media. That includes interacting with consumers beyond giving them information about the product, being consistent and keeping up with daily posts, as well as keeping the content interesting. Part of being a successful organization is much more than the quality of the product, and how you market it, but now it is how well the organization uses social media.…

    • 1415 Words
    • 4 Pages
    Good Essays

Related Topics