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Pest Analysis: PEST Analysis For Airbnb

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PEST analysis is a model that uses environmental scanning to analyze the four factors, such as political, economic, social-cultural and technological. PEST analysis is a part of external analysis when making market research, giving the company an overview of the different factors in the overall environment. This strategy tool can also effectively understand the growth or decline of the market, the business situation, potential and operational direction. Political factor include government type and stability, freedom of press, rule of law, Bureaucracy, Corruption, environmental controls, trade restrictions, tariffs and likely political change. Economic factors include business cycle stage, economic growth, interest rates, exchange rates and …show more content…

Hundreds of thousands of hosts worldwide have welcomed these travelers into their homes. Hosting helps make ends meet. Airbnb is the industry leader in “Shared economy”. This is a development trend that shares resources between companies and individuals. Another example is Uber and Grab car. Airbnb has grown and is a major competitor to hotels and motels. Airbnb offers cheap rental alternatives. It is exponentially growing in a short time. Now, they serve more than 900 million people worldwide. The benefit of shared economy of Airbnb is positive impacts on consumers and the tourism industry, positive impacts on neighborhoods and local businesses, and positive impacts on residents and house holds. Airbnb provides work to "hosts" - people who regularly provide homes for the guests. For a city that lacks a hotel or motel, this type of service is very popular and beloved. Airbnb benefited the state by creating millions of dollars in spending and full-time-like jobs. In New York, the economic activity totaled $ 60 billion, providing more than four thousand …show more content…

The hosts provide their houses to guests in exchange to money. Visitors will record their experiences online social media. Social media allows stories to spread. Airbnb growth strategy is evolving around features that touch non-users referrals, wish lists, neighborhoods, listings, references, and their amazing blog, through word of mouth. In addition, the hosts will share their experience to other. Although visitors often left a comment, the host also discusses tenant activities. Hosts and visitors are openly discussing their needs and experiences on social media. The company also has a program of "experience". The user booked a three-day funny course experience. Or participate in special events. Participants can also make 100% of the "social impact experience" of nonprofit and profit benefits. Airbnb may not provide the final end product, but will certainly sell the experience when the brand promotes P2P service, the user must be trusted. In the case of Airbnb, this means cosseting hosting and

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In this segment we will discuss about the external forces of the company that are not controllable (Keegan and Keegan, 1989). PESTLE analysis will be an effective tool here to analyze the factors. 2.1.1 PESTLE Analysis PESTLE is a very effective macro environmental tool containing six important factor. Political Factors In India political factor is very vulnerable.

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(American company financing startups) with an additional $20,000 in funding. At this time Airbed & Breakfast becomes Airbnb. They received $600k from Sequoia Capital and Y Ventures (specializing in incubation and financing of innovative companies). In 2010, Airbnb perceives $7.2 million Series A (A Series A round is the name typically given to a company's first significant round of venture capital financing ) Back in

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“No pain no gain”, echoes in my mind, as the hot sweltering humid air engulfs my room, baking me in the unbearable heat early one morning, during the summer after my freshman year of college. The thought instantly brings me back to memories of my childhood, where whenever I complained, my dad would retort “no pain no gain”. Back then, I hated hearing it over and over again. To me it was just something my parents said to stop us from complaining, and I never stopped to think why that one phrase was so important to them.

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Political Forces: The political stability is very important for the business to grow and last, according to that if the business has been operated in a politically unstable area, or in a country that is under a threat of wars that will lead to a loss for the business. Politics and governmental interferes is an important issue that is facing businesses and became a barrier in many situations. GAP Inc.

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Introduction - If you’re an aspiring Airbnb host, it is of paramount importance that you ensure all your renters are comfortable in their temporary lodgings. That means making sure the listed property is warm, secure, and, above all else, clean. Keeping your rental property clean can be a difficult task, especially as some travelers can be a tad more careless than others, but it must be done if you are to satisfy clients and maintain a good reputation on Airbnb. In order to help you keep your tenants comfortable for the duration of their stay, I have prepared this list of some of my top tips for maintaining a tidy Airbnb space.

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The offers of accommodations via Airbnb are currently available in 192 Countries and in over 34,000 cities worldwide (O 'Toole, 2014). The valuation of Airbnb, the home-rental platform, is worth of $10 billion after it raised $450 million from private investment firm TPG in 2014 (Spector, Macmillan & Rusli, 2014). The type of business of Airbnb can be categorized to social networking service which focuses on the accommodation-rental service. The concept of Airbnb is actually a sharing economy which enables the customers to become the micro-entrepreneurs at the same time. Airbnb aims at not only providing the accommodation opportunities but also the experiences for people to interact with others all around the world and get to know how the local people live in a certain city and have some culture exchange experiences with international guests and hosts.

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1.INTRODUCTION OF COMPANY My PESTEL analysis for this piece of writing is based on the famous international lingerie company, Victoria Secret. Victoria Secret was founded in 1977 by Roy Raymond, and his wife. Roy Raymond’s interest in a lingerie line was sparked by his embarrassment when purchasing lingerie for his wife. It was then that he studied the market before deciding to go into business, opening their very first store in Palo Alto, California. His vision then, was to have a store that would make everyone, especially men, comfortable shopping for lingerie.

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PESTLE ANALYSIS OF INDIA-BHP BILLITON (IRON ORE, COAL, COPPER AND URANIUM COMPANY) A PESTLE analysis is basically a framework that categorizes environmental influences as Political, fiscal, Social and Technological forces. The analysis examines the impact of each of these explanations (and their interplay with every different) on the business. Philip Kotler claims that PESTLE evaluation is a useful strategic tool for understanding market progress or decline, business position, advantage and path for operations. Political causes affecting trade specially revolve round taxes, import and export tariffs, environmental and labor legal guidelines, abilities subsidies, and the steadiness of a given operational area.

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Introduction Rolls Royce Group Private Limited Company outlines, creates, fabricates and administrates engine for use on Air, Land & Sea. Of which, air is its major business division. The Aerospace division comprises of civil aerospace and defense aerospace while Land & Sea divisions involved of marine, nuclear and power systems (Reuters, 2015). Rolls-Royce was once an electrical and mechanical business that established by Sir Frederick Henry Royce in 1884.

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PESTLE The first factor to look at in a PEST analysis is the political aspect. Political issues vary from country to country. Guatemala is one of the countries that embrace the multiparty system with the framework of presidential representative. The president is both the head of state and the head of government.

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Having a value of over $10 billion, Airbnb “exceeds that of well-established global hotel chains like Hyatt” (Hospitality Net). This proves that this online service is significantly surpassing these stable hotel chains that have been competing in the industry for over 60 years. Along with this, a recent report by HVS Consulting & Valuation found that “hotels lose approximately $450 million in direct revenues per year to AirBnb” (Orourke). Although Marriott International has been performing with a 45% increase in revenues from 2012 to 2016, Airbnb has definitely had an impact on the consumer perspective of traditional hotel rooms. In addition to this, hotels also lose over $108 million of food and beverage revenues as a result of guests not spending their money at the hotel’s restaurant.

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PESTLE analysis is include of political, economic, social, technological, legal and environmental factors. PESTLE is a business tool that used by companies to track and analyse the macro environment in which the company operate. This tool is very useful which help in overall growth and development of organization after learning from the past mistake and working for future. The first factor is political factor which include such as law of land, taxation policies, rules and regulation, trade restriction and so on.

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