Preview

Airbnb Case Analyses

Good Essays
Open Document
Open Document
758 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Airbnb Case Analyses
-What could Airbnb have done to avoid the “EJ” incident? What about the aftermath?

Airbnb could have implemented a better protection against such incident like “EJ”. They could, (1). Require more complete profiles about the hosts and renters, (2). Prescreen hosts and guests, (3). Provide insurance for hosts and renters, (4). Be less restrictive on hosts when they reject unsuitable renters, (5). Differentiate price charged based on guest’s ratings, (6). Present more sophisticated consumer reviews,
(7). Use incentives to encourage reporting of problems.

Instead of being reluctant to comment on the “EJ” incident, Airbnb should have responded much more quickly to the public after the “EJ” incident; apologize via the media to the host “EJ”, announce proper solution to such problems and publish improvements over such safety issues.

-Assume that you were creating a financial model to determine the value of Airbnb (either for a PE firm or if Airbnb was public). What would be the key variables in your model? How would you model incidents like the one with “EJ“. Should you bother? Why or why not? Would the “EJ incident” be a Black Swan?

We would interweave following variables into our financial model regarding the value of Airbnb for a PE firm:
(1). General economic condition (GDP): higher revenue stream for Airbnb when economy is sturdy since more percentage of rooms booked are of high quality, as opposed to larger portion of rooms reserved for saving money when economy is weak. (2). Average rent received by Airbnb hosts and current average vacancy rate of residential property, higher vacancy rate lowers the average rents charged by the hosts and therefore less fees collected by Airbnb. (3). Insurance costs, this would change according to previous incidents and corresponding compensations. (4). Operating expenses, including costs of customer service and marketing etc. (5) Proportion of the website traffic that transfers into actual deals.

Since our

You May Also Find These Documents Helpful

  • Good Essays

    Each DeRight wanted to purchase a property large enough to attract the interest of a professional real estate management company to relieve them of the burden of daily management, and they wanted a minimum leverage return of their investments of 12% after tax. With the four promising investment properties located, Angus feels that these will be more then suitable for his clients, as the DeRight’s seem to be very enthusiastic about them. With time being valuable to Angus, he also wanted to make sure he was providing a preliminary analysis that would be worthwhile to his clients. Out of the 4 properties they will be viewing, two of the properties will be apartment complexes, and the final two will be office buildings that are showing great revenue returns as well as close to full occupancies. Whichever route they chose to go, keeping the units filled with the lowest possible vacancy will be vital to remain successful over the 10 year holding periods estimated for each property.…

    • 1042 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    The Naabs would wind based on adverse possession and prescriptive easement. When the Naabs purchased the property, they became the adverse…

    • 800 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Intervention/ Response: CM traveled to consumer boarding home for the purpose of helping consumer improve her basic living skills. CM and Therapist Amanda Perkins arrived at consumer boarding. Consumer was sitting in porch. Consumer clothes were still wet from urine. CM explained to consumer she was moving to a group home. CM assisted consumer with packing and loading her items into CM car. CM traveled to Lakeview group home. CM arrived at Lakeview and assist consumer with unloading her items. When consumer arrived at Lakeview group home she refused to stay. After speaking with the director, Consumer agreed to stay at Lakeview group home.…

    • 104 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    On February 14, 2016, at 2101 hours, I responded to C-8 of the Cedar Court Apartments, located at 1115 White Horse Pike for a report of harassment by phone.…

    • 190 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Roommates.com case brief

    • 563 Words
    • 2 Pages

    Roommate.com, LLC is classified under 230 as an “information content provider” because the website made the questions, force users to answer them in order to use the website and posted them on their website. The court came to the conclusion; Immunity through section 230 of the CDA does not protect Roommate.com, LLC. The court rationalized that since Roommate, LLC required subscribers to answer questions about sex, sexual preference, and family status that makes Roommate.com responsible in part of the content for each profile page. There is no way to opt out which makes Roommate.com not protected under immunity in section 230 of CDA. Since, the…

    • 563 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Model 1: Run a full model for profit that includes both tenure and site location related variables. Tenure related variables are MTenure and CTenure. Site location related variables are population, number of competitors, street level visibility, pedestrian access, type of neighborhood, and whether a store stays open 24 hours. These variables are also defined on page 4 of the case Store24 (A). For categorical variables, be sure to use dummy variables for this and remaining models.…

    • 817 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Mat 540 Assignment 2

    • 1063 Words
    • 5 Pages

    a. How do you interpret the intercept, the coefficient of lot size, beds and other variables?…

    • 1063 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Minimum Lease Case Study

    • 483 Words
    • 2 Pages

    The lease of a combustion turbine by Big Bear Power from Goliath Co includes three provisions that we must examine to determine whether they should be included in the “minimum lease payment” as defined in ASC 840.…

    • 483 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Draft email communication to Mr. Ward and send a personal note to all 13 of the other guests in his party’s home address clearly articulating the problem with two to three key message and next steps. Draft email communication to faculty and staff to hold a meeting. Hold meeting to discuss policies and procedures on overbooking policies. During this meeting, discuss different ways the hotel can help manage this process and if there is a solution to the problem.…

    • 681 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Borders Hotel Corp. Case

    • 837 Words
    • 4 Pages

    She has to consider overall effectiveness of financing choices by taking earnings and expenses depending on occupancy levels .Because Daniels think that profitability forecasting of the hotel is related to occupancy levels that are 75 per cent (realistic) and 50 percent (lowest possibility). Any proposal that will give the maximum earnings should be selected in order to raise $2,275,000 for BHC.…

    • 837 Words
    • 4 Pages
    Good 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
  • Satisfactory Essays

    Shrieves Casting Company

    • 276 Words
    • 2 Pages

    (3.) Now assume that the plant space could be leased out to another firm at $25,000 per year. Should this be included in the analysis? If so, how?…

    • 276 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Hubbart Formula

    • 418 Words
    • 2 Pages

    The Casa Vana Inn, a 200 room property, is projected to cost $9,900,000 inclusive of land, building, equipment, and furniture. An additional $100,000 is needed for working capital, bringing the total cost of construction and opening to $10,000,000. The hotel is financed with a loan of $7,500,000 at 12% annual interest and cash of $2,500,000 provided by the owners. The owners desire a 15% annual return on their investment. A 75% occupancy is estimated; thus, 54,750 rooms will be sold during the year (200 x 0.75 x 365). The income tax rate is 40%. Additional expenses are estimated as follows:…

    • 418 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    This practicum report will serve as a partial requirement for the practicum I had this A.Y. 2012-2013. As my practicum establishment I was hired at the Island Cove Hotel and Leisure Park which is located at Binakayan, Kawit, Cavite A Hotel First it was named as Pulo ni Burungoy into Covelandia to Island Cove Resort and Leisure Park and Finaly it obtain it’s name today. I stayed there from November 2012-December 2012. This report will also serve as my observation to the hotel and to myself..…

    • 1686 Words
    • 7 Pages
    Powerful Essays