PESTEL Analysis - Airbnb

Angela L.

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PESTEL Analysis - Airbnb

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Themes

Airbnb PESTEL, Pestel Analysis, Nathan Blecharczyk, Joe Gebbia, Brian Chesky, accomodation, rooms, airbedandbreakfast.com, travellers, hotels, collaborative consumption, shared economy, Covid-19

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Abstract

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'...
In 2007 Airbnb founders Nathan Blecharczyk, Joe Gebbia and Brian Chesky came up with the idea of renting out an air mattress in their apartment to make some extra income. They bought a few air mattresses and set them up in their loft to offer to people looking for accommodation. They created a simple website airbedandbreakfast.com and welcomed their first guests who paid them $80 each per night.

Introduction
1. Presentation of Airbnb
2. Industry and market data
3. Presentation of PESTEL analysis
PESTEL Analysis
1. Political
2. Economic
3. Social and cultural
4. Technological
5. Environmental
6. Legal
Conclusion and strategic recommendations

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Extract

[...] 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. [...]

[...] Their catchphrase explains the business perfectly: “Welcome to the Airbnb travel community. [...]

[...] Environmental The Airbnb concept has a very beneficial impact on the environment. Overall it has reduced energy usage, water usage and creates far less waste compared to conventional hotels and motels. In 2013 a study was conducted by surveying 8,000 guests and hosts across the world to analyse the environmental impact of stays at Airbnb compared to hotels. On average, Airbnb properties consumed less than 70% of the energy consumed in hotels per guest night and produced less than 75% of greenhouse gas emissions. [...]

[...] 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. [...]

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