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Introduction

Airbnb.com “The world’s fastest-growing website”

is an online marketplace for arranging or offering lodging, primarily homestays,

or tourism experiences. The company does not own any of the real estate listings, nor does it

host events; it acts as a broker, receiving commissions from each booking.[5] The company is

based in San Francisco, California, United States.

The company was conceived after its founders put an air mattress in their living room,

effectively turning their apartment into a bed and breakfast, in order to offset the high cost of

rent in San Francisco; Airbnb is a shortened version of its original name,

AirBedandBreakfast.com.

Letting complete strangers into your home might not sound like a good idea to everyone.

Neither, on the flip side, is letting yourself into the home of a complete stranger. But for the

many millions of users of accommodation-sharing site Airbnb, the idea isn’t just good, it’s

brilliant. Since the company launched in 2009, it’s grown from helping 21,000 guests a year

find a place to stay to helping six million a year go on holiday, and currently lists a staggering

800,000 properties in 34,000 cities across 90 different countries.

There are some potential pitfalls with Airbnb – one woman in the US was so irritated

by her nightmare guests that she had to pay them to leave her own home - but if six million

people trust it and use it, it’s clearly worth investigating.

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A community built on sharing

Airbnb began in 2008 when two designers who had space to share hosted three

travelers looking for a place to stay. Now, millions of hosts and travelers choose to create a

free Airbnb account so they can list their space and book unique accommodations anywhere

in the world. And Airbnb experience hosts share their passions and interests with both

travelers and locals.

Trusted services

Airbnb helps make sharing easy, enjoyable, and safe. We verify personal profiles and

listings, maintain a smart messaging system so hosts and guests can communicate with

certainty, and manage a trusted platform to collect and transfer payments.

Airbnb: An Overview

Airbnb is an online marketplace that connects people who want to rent out their

homes with people who are looking for accommodations in that locale. It currently covers

more than 81,000 cities and 191 countries worldwide. The company's name comes from "air

mattress B&B.”

For hosts, participating in Airbnb is a way to earn some income from their property, but with

the risk that the guest might do damage to it. For guests, the advantage can be relatively

inexpensive accommodations, but with the risk that the property won't be as appealing as the

listing made it seem.

KEY TAKEAWAYS

 Travelers can often book an Airbnb for less than the cost of a hotel room.

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 The main risk to the traveler is that the property may not live up to its listing.

 The main risk to hosts is that guests might do serious damage to their property.

Features:

Online website “ www.Airbnb.com

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Booking of Hotels to Tagaytay

Airbnb in android Phone

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Capabilities

Airbnb’s service is the most recent manifestation of the disruption in the travel lodging

industry. The traditional intermediaries, travel agents, have largely been replaced by

automated ones, like Google and Orbitz. These online intermediaries are able to provide a

variety of choices, easily accessible information, and direct interaction channels for sellers; the

traditional travel agent, on the other hand, offers little added value (Dilts and Prough 2002).

[3] As a result of this environment, those in the travel industry have almost unilaterally

invested in some form of Information Communication Technology (ICT).

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The trend towards online intermediaries in the travel lodging industry has reduced

transaction costs throughout the industry. As Michael Porter points out in Strategy and the

Internet, Internet based companies, dramatically reduce the variable costs associated with an

operation. Instead, corporate cost structures become increasingly reliant on fixed costs. The

consequence of this, according to Porter, is “significantly greater pressure for companies to

engage in destructive price competition” (Porter 2001).[4] The margins for travel services are

thinner than they were before the Internet age, but the reach of their services, which makes the

market more efficient by reducing the consumer’s search costs, allows for their profitability.

In an age where consumers have come to demand the convenience associated with investment

in ICT, Airbnb takes the disintermediation a step further, acting as both an information (see:

Orbitz) and service (see: Hilton) provider.

What makes Airbnb unique, however, is not the way in which it reduces transaction

costs through its use of ICT, but rather, how it has brought the C2C model to an industry that

has traditionally been exclusively B2C. Airbnb is what is often referred to as a

“cybermediary” (Gialgis et al, 1999), a corporation that benefits from a leaner cost structure,

global reach, and technological economies of scale, the result of large volumes at low

transaction costs.[5] Airbnb does not have physical rooms; it is a platform for those looking to

rent them. Still, for the exposure that Airbnb provides, it charges hosts who make a listing 3

percent of the listing price, then collects an additional 6 to 12 percent from the guests who

agree to stay there. It was estimated that, with this cost structure, Airbnb generated over $1

billion in revenue last year.

Airbnb is able to charge a premium like this because of a network effect that it has

captured, whereby “the value of connecting to a network depends on the number of other

people already connected to it” (Shapiro & Varian 1999). The more users Airbnb has, the

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more inclined someone becomes to list their own spare room on the site. Likewise, guests who

have a good experience at an Airbnb rental often go on to list their own space for rental on the

site. Airbnb’s growth suggests both the existence of these positive feedback loops and the

company’s continued to success into the future. In February of 2012, Airbnb claimed 5 million

users; by June of that year, the number had doubled, to 10 million (Thomas 2013).

Airbnb is competing not only with Google and Orbitz, but with the hotels themselves.

Just as with the Internet intermediaries, Airbnb has several distinct advantages over its hotel

competitors. Unlike hotels, Airbnb is not constrained by rising variable costs. Instead, Airbnb

can offer an incredibly expansive list of rooms, in countries around the world, for little more

than the price of the additional servers and engineers. As it stands now, the company website

has listings in 192 different countries and 34,000 different cities. Airbnb allows users to

navigate these listings intuitively thanks to several features on its website. In addition to a

search bar powered by Google that matches users with spaces in their desired location, there

are tabs for “Popular,” “Friends,” “Airbnb Picks,” and “My Wish Lists,” all of which are

designed to filter the vastness of the Airbnb network. The Airbnb model is thus an example of

ICT that can lower search costs by providing both a wealth of information and the

mechanisms to easily manage, process, and evaluate it (Malone et al 1987).

Advantages of Airbnb

Wide Selection

Airbnb hosts list many different kinds of properties—single rooms, a suite of rooms,

apartments, moored yachts, houseboats, entire houses, even a castle—on the Airbnb website.

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Free Listings

Hosts don't have to pay to list their properties. Listings can include written

descriptions, photographs with captions, and a user profile where potential guests can get to

know a bit about the hosts.

Hosts Can Set Their Own Price

It's up to each host to decide how much to charge per night, per week or per month.

Customizable Searches

Guests can search the Airbnb database—not only by date and location, but by price,

type of property, amenities, and the language of the host. They can also add keywords (such

as "close to the Louvre") to further narrow their search.

Additional Services

In recent years Airbnb has expanded its offerings to include experiences and

restaurants. Besides a listing of available accommodations for the dates they plan to travel,

people searching by location will see a list of experiences, such as classes and sightseeing,

offered by local Airbnb hosts. Restaurant listings also include reviews from Airbnb hosts.

Protections for Guests and Hosts

As a protection for guests, Airbnb holds the guest's payment for 24 hours after check-

in before releasing the funds to the host.

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For hosts, Airbnb's Host Guarantee program "provides protection for up to $1,000,000 in

damages to covered property in the rare event of guest damage, in eligible countries."

Disadvantages of Airbnb

What You See May Not Be What You Get Booking accommodations with Airbnb is

not like booking a room with a major hotel chain, where you have a reasonable assurance that

the property will be as advertised. Individual hosts create their own listings, and some may be

more honest than others. However, previous guests often post comments about their

experiences, which can provide a more objective view. Check the comments of other guests

who have stayed at that Airbnb property to make sure the listing is accurate.

Potential Damage

Probably the biggest risk for hosts is that their property will be damaged. While most

stays go without incident, there are stories of entire houses being trashed by dozens of party-

goers when the Airbnb hosts thought they were renting to a quiet family. Airbnb's Host

Guarantee program, described above, provides some assurance, but it may not cover

everything, such as cash, rare artwork, jewelry, and pets. Hosts whose homes are damaged

may also experience considerable inconvenience.

Added Fees

Airbnb imposes a number of additional fees (as, of course, do hotels and other lodging

providers). Guests pay a guest service fee of 0% to 20% on top of the reservation fee, to

cover Airbnb's customer support and other services. Prices display in the currency the user

selects, provided Airbnb supports it. Banks or credit card issuers may add fees if applicable.

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And, while listings are free, Airbnb charges hosts a service fee of at least 3% for each

reservation, to cover the cost of processing the transaction.

Taxes

Both hosts and guests from the European Union, Switzerland, and Norway may be

subject to a value-added tax (VAT). And depending on their location, hosts may be subject to

rental income taxes. To assist with U.S. tax compliance, Airbnb collects taxpayer information

from hosts so they can provide an account of their earnings each year

via 1099 and 1042 forms.

It Isn't Legal Everywhere

Before listing their properties on Airbnb, would-be hosts need to check their local

zoning ordinances to make sure it's legal to rent out their properties. Hosts may also be

required to obtain special permits or licenses.

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LITERATURE

Airbnb

A general overview of Airbnb Airbnb describes itself as “a trusted community

marketplace for people to list, discover, and book unique accommodations around the world”

(Airbnb, 2016a). It is essentially an online platform through which ordinary people rent out

their spaces as accommodation for tourists. These accommodations typically involve an

entire home (such as an apartment or house), or a private room in a residence where the host

is also present. Additionally, a very small percentage of Airbnb listings are shared rooms

(e.g., a guest may sleep on a futon in the living room) or exotic accommodations like igloos

and tree houses. Airbnb’s diverse inventory also ranges from very modest to extremely

luxurious

Airbnb does not provide a clear breakdown of its listings, but a 2012 company fact

sheet stated 57% of its listings were entire homes, 41% were private rooms, and 2% were

shared spaces (Airbnb, 2012a). More recent independent analyses of data extracted from the

Airbnb website have confirmed this general breakdown. For example, Slee (2013) found 56%

of New York City Airbnb listings were for entire homes, and Clampet (2014) reported that

two-thirds of New York City Airbnb listings with at least one review were entire homes.

Also, as of February 2016, data for 32 major global cities extracted from Airbnb’s website

and presented on the website insideairbnb.com, indicated an average of 64% of the cities’

Airbnb listings were for entire homes, 34% were for private rooms, and 2% were for shared

spaces. Airbnb operators (i.e., “hosts”) may rent their primary residence, a second home, or

even operate one or more Airbnb listings as permanent short-term rentals. Roughly 80 to 90%

of Airbnb hosts rent their primary residences (Airbnb, 2016b), but accommodations offered

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by (seemingly “professional”) 11 hosts with multiple rentals represent a proportionally larger

share of Airbnb’s total listings and bookings (Clampet, 2014; Coldwell, 2016; O’Neill &

Ouyang, 2016; Popper, 2015; Schneiderman, 2014; Slee, 2014).

The Airbnb website (www.airbnb.com) is quite straightforward: a prospective guest

searches based on destination, travel dates, and party size; the website then returns a list of

available spaces that can be refined by attributes like price, neighbourhood, and amenities;

and then individual listings can be selected for greater detail, which includes a description,

photographs, and reviews from previous guests. When interested in a listing, the tourist

generally sends the host a reservation request and/or message in order to express interest,

possibly ask questions, and often provide information about the travel party. The host then

may respond and ask any questions of the tourist, or if a reservation request has been made

then the host can accept or reject the request. Payments are made through the Airbnb website,

and the company charges guests a 6 to 12% fee and hosts a 3% fee (Airbnb, 2016k, 2016l).

Airbnb has leveraged the internet to revolutionize the long-existing practice of

ordinary people renting accommodations to tourists. This practice has always been limited by

the difficulty hosts faced in making their accommodations known to potential guests, and the

challenge of establishing the needed trust between hosts and guests. Airbnb has overcome

these obstacles by exploiting new internet and mobile technologies. Airbnb’s technological

infrastructure allows hosts to freely and effortlessly attract bookings from around the world,

as the website makes it simple for hosts to post descriptions and photographs of their spaces,

communicate with guests, and accept reservations and payments. Likewise, the Airbnb

platform allows trust to be established between hosts and guests, primarily via the practice of

hosts and guests posting public reviews about each another. Such reputation systems serve

the dual 12 purpose of allowing two parties to learn more about one another before agreeing

to a transaction, and creating an incentive for both parties to conduct themselves in an

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acceptable manner (Jøsang, Ismail, & Boyd, 2007; Resnick, Kuwabara, Zeckhauser, &

Friedman, 2000). Additionally, trust is fostered through the direct messaging communication

between hosts and guests; through various identity verification techniques (described below);

and through users’ profiles, which generally include a photograph, descriptive personal

information, and reviews from previous hosts.

Airbnb is much more than a simple matchmaking platform like craigslist, as it is

directly integrated into numerous aspects of the total transaction process, and as Airbnb has

grown it has made a variety of noteworthy service improvements. For example, to further

enhance security, Airbnb has introduced numerous available mechanisms for identity

verification, including providing an official form of photo identification, authenticating one’s

phone number, and linking one’s Airbnb profile with one’s Facebook and LinkedIn accounts

(Airbnb 2016j, 2016m, 2016p; Lawler, 2013a). In 2011, Airbnb began offering hosts access

to free professional photographers whose pictures are verified with an Airbnb watermark

(Airbnb, 2016i, Boyd Myers, 2011). That same year, Airbnb launched a 24-hour telephone

hotline that guests or hosts can call to report any issues (Kincaid, 2011). In 2013, Airbnb

hired the founder of a major boutique hotel company to serve as its Head of Global

Hospitality & Strategy, with the responsibility of improving guest experiences by promoting

key standards in areas such as cleanliness, response time, and the accuracy of listing

descriptions (Airbnb, 2013d; Geron, 2013b).

More recently, Airbnb tested the use of its own cleaning service (Lawler 2014a);

offered free smoke alarms and carbon monoxide detectors to thousands of hosts (Airbnb,

2016c; Tam, 13 2014); launched an “Instant booking” feature permitting reservations at some

rentals to be made immediately, without explicit approval from the host (Airbnb, 2016o;

Plautz, 2014); introduced a “Superhost” status badge for especially active and well-reviewed

hosts (Airbnb, 2016f) (which should not only help guests with their accommodation selection

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but should also incentivize optimal service from hosts); and modified the reviewing

procedures so as to encourage more honest (i.e., less positive) reviews (Airbnb, 2014c;

Rubin, 2014). Airbnb also has spent several years experimenting with the potential to offer

various activities and other travel experiences and services (e.g., guided tours, drink tastings,

bicycle rentals, and restaurant reservations), and purportedly will launch the initiative

formally by the end of 2016 (Lawler, 2014b; Newcomer & Chang, 2016). Additionally,

Airbnb has recently made efforts to attract business travellers, who represent just a small

share of Airbnb guests, by setting up a dedicated business travel portal with customized

search results and expenditure management tools, by partnering with various corporate travel

management firms, and by introducing a “Business Travel Ready” badge that can be earned

by listings with certain characteristics (e.g., a designated workspace) (Airbnb, 2014d, 2014e,

2014i, 2016n, Dillet, 2015; Taylor, 2016; Terdiman, 2014).

Limited information is available regarding user demographics, but in 2012 Airbnb

reported that approximately 40% of its guests were American, with Europeans comprising the

majority of the rest (Taylor, 2012). At the time, just over half of its listings were in Europe

and just over a quarter were in North America (Taylor, 2012), and in early 2015 the company

confirmed that over half of its listings were still located in Europe (Shead, 2015). Also, an

Airbnb report on its performance during the summer of 2015 stated that its average guest age

was 35 (Airbnb, 2015c), which is consistent with an earlier claim that its average guest age

was 14 36 (Williams, 2014). The summer 2015 report also indicated that 54% of its guests

were female (Airbnb, 2015c).

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Results & Findings

JHCSC COLLEGE DEPARTMENT

Book homes, hotels, and more on Airbnb
Air-Bed and Breakfast

Name:
Designation/Position:

Instruction:
Please rate the Usability of the (Air-bed and breakfast)
using the scale below by checking (√) the level that
corresponds your answer.

Scale:
1 = Strongly Disagree
2 = Disagree
3 = Undecided
4 = Agree
5 = Strongly Agree

Effectiveness 1 2 3 4 5
Time to learn and use
Tasks can be performed in a straight-
forward manner
Data entry time
I can effectively complete my work using
this system
Task time
Tasks can be performed in a short period of
time using this system
Response time
I can use it successfully every time
Time to install
This system is fast to install
Efficiency 1 2 3 4 5
Number of errors
I can efficiently complete my work without
spending too much time correcting things
with this system
Completion rate
I am able to complete my work quickly using
this system
Satisfaction 1 2 3 4 5
I am satisfied with the ease of completing
the tasks using this system

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I am satisfied with the amount of time it

took to complete the tasks using this
system
Overall, I am satisfied with this system

Airbnb Scale Rating

effectiveness
Airbnb
Linear
16 (effectiveness)
14 14 Efficiency
Satisfaction
12

10

6 6

0 0 0 0
Strongly Disagree Undecided Agree Strongly Agree
Disagree

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Recommendations

1. Be Inclusive of all Nationalities

Airbnb exists to create a world where anyone can belong anywhere, providing healthy

travel that is local, authentic, diverse, and sustainable. Embracing this value will allow hosts to

improve their occupancy rate for the following reason also they should rate it per currency of

each country that the person should be booking.

2. Pricing should change by Demands

The hospitality industry is dynamic, and pricing and demand constantly fluctuates. Every

month, hosts should evaluate and consider the price of their competitors, the demand for

listings based on the number of tourists that month, and their listing’s placing on the search

rankings.

All we can is that the airbnb or Air-bed and breakfast is really a great online platform

that connects hosts renting out space in their homes with guests seeking lodging for generally

cheaper prices than a hotel. Its is much more faster than the conventional booking of hotels in

areas it save a lot time to those who wants to travel Local or Abroad, so there is no need to

enhance the system. The one that should be updated to demand of the travelers.

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Challenges
1. The host cancels your reservation at the last minute.

Your bags are packed and you're anxiously counting down the hours until your

departure — and then it happens — an e-mail notifying you that your host has canceled your

reservation, for whatever reason, suddenly appears in your inbox, leaving you scrambling for

a place to stay (because your plane tickets are also non-refundable). Breathe: All is not lost.

In situations like this, Airbnb will either apply your payment to a new booking (and if the

new place costs more, will help cover a portion of the difference) or give you a full refund. If

you're unable to find another Airbnb rental you like in such a short period of time, sites

like LastMinute.com or the Hotel Tonight app can help you find last-minute hotel

accommodations.

2. You're unable to reach your host when you arrive (and they're late) or they simply

don't show up at all.

Despite spending a good amount of time painstakingly searching through listings for

digs with amazing reviews and high ratings, miscommunication and unexpected

circumstances have left me stranded on several occasions for hours outside my potential

apartment, waiting for my host to arrive or confirm the process for obtaining the keys — and

that's even after giving them plenty of heads up regarding my arrival time, as requested.

Coordinating with your host, mapping out a very specific plan and checking in repeatedly

before arrival typically covers all your bases, but I am living proof that sometimes it doesn't.

So what to do? To plan for a situation like this, you'll need to do a little footwork before you

leave home. Scope out the area ahead of time and pinpoint a few spots, coffee shops,

libraries, parks, etc. where you can kill some time while you wait for your host, and make

sure your cell phone is fully charged (you may even want to invest in a portable charger). It's

also not a bad idea to scope out area hotels; On the off chance that your host doesn't show up

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at all, you'll already be aware of your other options, as well as how to get there. Have the

Airbnb phone number written down somewhere, so you can call them at a moment's notice if

you run into any issues.

3. The place isn't exactly what you expected.

Whether your host forgot to mention that they have a few furry friends, or the

cleanliness of the space is subpar, if you notice that something is not working, missing or

simply not what you expected when you check in, let your host know stat. Typically they're

in the best position to help you and resolve the issue quickly. If your host is unable to do so,

and it's a total deal breaker, you may be eligible to receive a refund from Airbnb, as long as

you contact them within 24 hours of checkin. Snap a few photos to help back up your claim,

and use the Airbnb messaging tool to notify your hosts of the issue, so that there is proof that

you and your host have discussed the problem at hand. Can't get a hold of your host? Airbnb

says that you won't be eligible for a refund after 24 hours, but notes that they will help you

mediate with your host if you've reached out with no response.

4. Something goes awry during your stay.

Again, your host should be your first point of contact if something goes wrong,

whether the washing machine goes haywire or you can't get the WiFi to work. If, after

contacting them, you don't receive a response or your host isn't able to resolve the issue, you

can file a claim for a refund with Airbnb within the first 24 hours of your stay. Otherwise,

Airbnb will step in to help mediate between you and your host. While it won't fix a busted

box spring or ward off noisy neighbors, sharing your experience with an honest review after

your stay will help other people avoid similar headaches and negative experiences.

5. You lost the key or locked yourself out.

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Don't panic. Get in touch with your host the minute you realize you can't access the

property. Most hosts will have a spare key on hand, but know that they may not be able to

come let you in right away. If your host has to replace a lost key, change the locks or hire a

locksmith to let you back into the property, be aware that the cost may come out of your

security deposit if your host charges one.

6. You have an issue with your host or another guest.

If you're renting an entire house or apartment, this is an issue that probably isn't even

on your radar, but if you're staying in a guest room, be aware that sharing a stranger's

personal space has the potential to spur small conflicts. Communication is key in avoiding

this situation — make sure to read through the host's profile, reviews and listing information

before booking, and ask questions if anything is unclear. Note the timeliness and tone of the

host in their responses, and look out for red flags. If an issue arises after you've checked in

and you can't resolve it, reach out to Airbnb for help mediating, and have a backup plan ready

to go if the situation becomes too much to bear.

7. You're not sure if your rental is legal.

While Airbnb has become a go-to for travelers the world over, there are many cities

—New York, Paris and San Francisco included — that are putting up legal resistance against

the service. So how do you know if your rental is legit with the law? Renting a spare room in

someone's home or apartment, where they are present during your stay, gets the green light,

but in many cities, renting an entire apartment for a short period of time isn't legal because of

laws trying to preserve housing for local residents. While you, the renter, likely won't be

penalized, you may be out of a place to stay if the authorities turn up during your stay. Before

booking, do a quick skim of local laws to find out if Airbnb is okay to use in the area where

you're staying.

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8. Your host left you a bad review.

A bad review can do damage to your Airbnb cred, and affect your ability to rent. If

you feel that your host's review of you and your stay isn't accurate, you can share your side of

the story in a response that will appear under your host's review for future hosts to see.

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