PESTEL Analysis of Airbnb

Airbnb: PESTEL Analysis
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Airbnb: PESTEL Analysis
Pestel analysis is a structure used by marketers to track and examine macro environmental factors that influence a business. These macro environment factors are external marketing factors in a company; they are political, environmental, technological, social, legal, and economic factors. Notably, PESTEL analysis is used to examine the threats and weaknesses of a business. Primarily, Airbnb was established to offer a cheaper version of accommodation where the host would charge less money than the hotels and enhance guests' experience. In addition, it is a technology-dependent business that purely operates online to link the consumer ( Guest) and the supplier ( host) and create revenue ( Airbnb,2022). The global expansion of Airbnb exposed them to complications and issues relating to law and the environment.
Economic Factors: Profiting Hosts and Increasing Revenues to the Cities.
Ideally, Airbnb involves a host sharing a part of their house with the guest, who helps them foot some bills, cheaper than hotels. This creates a competition for hotels and motels. As of September 2021, Airbnb registered over one billion guest arrivals worldwide ( Airbnb, 2022). This translates to direct and indirect job creation and increased revenue for cities. Also, Airbnb boasts of being a leader in a shared economy between the company and individuals. Importantly, Airbnb helps cities with no motels and hotels as it has become the preferred accommodation mode.
Technological Factors: Tech Essential.
Airbnb greatly depends on technology to run its operation. A customer has to use technology to access their website and contact the host to book a room. After their stay, they are encouraged to leave a review of their experience with the host. If the review is negative, th...