External Factors Of Airbnb

Every industry to include the hospitality industry is impacted by external factors which directly influence organizational behavior and decision making. There are numerous factors to be considered, but political, economic, and social are three of the most influential. These outside factors sway managerial operational decisions daily regarding personnel, spending, policy, and short-term and long-term strategic planning concerning both core and exterior operations. As within every industry, the hospitality industry has unmanageable elements that affect management or ownership of hospitality establishments (Lewis 2017). Understanding these factors is important because it provides an opportunity for contingency planning (Lewis, 2017). The
Airbnb started from humble beginnings in San Francisco almost 10 years ago and can now be found in over 65,000 cities and 191 countries, providing unique travel accommodations and experiences in any various price ranges (Founders, 2018). The scope of operations and consumer popularity has increased dramatically over the last ten years and is poised to continue doing so in the years to come. The Airbnb upstart has been looked upon has a potential threat to the lodging side of the hospitality industry as guests can reserve accommodations quickly using the Airbnb application on a computer, tablet, or smartphone. Many states and local governments have recently passed legislation, frequently supported by the hotel industry, concerning short-term rentals as they provide a service similar to the hotel industry, but do not have to follow the same requirements or standards (Castro, 2017). Many state and local governments do not allow or restrict their employees from staying at these locations while traveling in an official capacity. New York passed a law to fine apartment owners between $1,000 and $7,500 for advertising their properties for durations less than 30 days as these properties have the potential to generate hundreds of millions of dollars annually (Castro, 2017). Additionally, immigration
Many countries in Europe such as England, France, and Germany have altered or revised their immigration policies due to recent terrorist attacks. Any type of immigration reform will have an immediate impact on the hospitality industry as it relies on immigrants to fill many positions. The hotel industry typically relies on immigrants to fill positions such as housekeeping and the restaurant industry relies on immigrants to fill positions such as waiters, dishwasher, and cooks as many of these positions provide low wages as they are entry-level positions. These types of positions are typically large in numbers, have a high turnover rate, and can be hard to fill which is why they are attractive positions for immigrants looking for work. England’s decision to leave the European Union has also affected the hospitality industry as 106,000 thousand workers left the country and have not returned leaving migration statistics the lowest ever since they started keeping track in 1964 (Freytas, 2017). Politicians in Florida have used competing legislation to land migrant workers from Puerto Rico (231,000) after Hurricane Maria which drove the unemployment rate down to 3.6 percent which is 13 percent lower than the national average ( Levin & Smialek, 2017). Similarly, the restaurant industry