The effect of AirBNB on the hotel industry Business Research Paper

The Effect of Airbnb on the Hotel Industry
Name
Affiliation
Course
Tutor
The Effect of Airbnb on the Hotel Industry
Executive summary
Frenken & Schor (2019), Gerdeman (2018), and Mirza (2019) reveal the threat posed by Airbnb Inc to hotels in the industry. Although the organizations worked and thrived in competition with each other, the foundation of this organization seemed like the introduction of a giant competitor in the industry. Most of the hotels went into a valley curve in their business operations as Airbnb thrived by working with relatively low prices to attract and maintain travellers and especially the guests seeking accommodation for leisure. The firms in the industry were affected and had to choose between coming up with solutions to the challenge or quitting their operations since business activities had gone to static points with only a few guests that cannot sustain them in the market. Hence, the best option was creating strategic plans like improvement in technology and redesigning the model of the hotels to accommodate all guests and travellers, including price-sensitive consumers.
Introduction
The foundation of Airbnb Inc has posed significant challenges in the hotel industry. The impacts of the operations have interfered with our business activities, and most hotels cannot make or reach the previously made profits from their investments. How is our hotel supposed to survive and thrive with the organization having such a significant competitive advantage? Airbnb has taken over the hospitality industry. As a manager, I know and understand that our hotel is a victim of the introduction of the firm in the industry. The number of accommodated guests had consistently reduced since 2008 when the Airbnb came into the market. Hence, we should engage a strategic plan towards working to normality in the maintenance of quality services and customers as well. Looking into the effects posed to our hotel by the competition impacted by the organization, we should create desirable responses to counteract the issues, without interfering with the continuity of our hotels. On the other hand, the measures chosen should be viable in financial management to avoid errors that could lead to losses instead of achieving distinct solutions to the impacts yielded by the introduction of Airbnb Inc.
Trend Analysis
The Airbnb inc. has grown to one of the most successful companies of the sharing economies affecting not only our hotel but also the entire hospitality industry across the globe. Since the foundation of the organization in 2008, it has continued to experience extraordinary growth while the hotel industry is getting impacted negatively. For instance, a study by Mirza 2019 shows that Airbnb helps more than 200 million travellers and guests to find accommodation, rendering our hotels vacant and with no available clients to take reservations. How are we supposed to remain to maintain our business with such kind of competition? Having most of the guest adopted by the company has affected our hotels negatively. Although we may have better service, the travellers do not know anything about our quality. Hence, most of them get reservations through Airbnb. Although the company is not taking all the guests, th...