Airbnb's Resilience: Adapting to COVID-19 Challenges

Airbnb's Adaptive Response to the COVID-19 Pandemic Elena Babnick MGT435: Organizational Change LaTonya Scott October 10, 2023

Introduction: This paper investigates how Airbnb, a prominent global online marketplace for lodging and travel experiences, effectively responded to external change during the COVID-19 pandemic, utilizing Kotter's 8-Step Change Model. It provides a contextual background by considering the timing and location of Airbnb and the economic, technological, and sociocultural forces influencing the change. Furthermore, it discusses the rationale for selecting Kotter's model over other change models and examines the effects of this change on Airbnb's stakeholders, society, and the environment. Contextualizing the Organizational Change: In 2020, the COVID-19 pandemic profoundly impacted the travel and hospitality industry, significantly decreasing travel bookings, cancellations, and widespread uncertainty (Smith, 2020). The pandemic brought about economic instability, new health and safety regulations, technological shifts towards contactless services, and sociocultural changes that emphasized hygiene and remote work (Jones & Brown, 2021). Selection of Kotter's 8-Step Change Model: Change models were considered, including Lewin's Three-Step and ADKAR models. However, Kotter's 8- Step Change Model was chosen for Airbnb's response to the pandemic due to the following reasons: Urgency and Momentum: The pandemic's sudden and severe impact necessitated Airbnb to establish a sense of urgency and act swiftly (Kotter, 1996). Kotter's model emphasizes the need to build momentum, aligning with the fast-changing nature of the crisis. Clear Communication: Effective communication was vital in addressing guest concerns, outlining safety measures, and guiding hosts through turbulent times (Kotter, 2012). Kotter's model prioritizes clear communication as an essential element of successful change.

Effects of Change: a. Shareholders: While Airbnb's valuation initially declined during the pandemic, shareholders ultimately benefited from the company's resilience and adaptability (Smith, 2020). The company's quick pivot towards local and longer-term rentals helped regain investor confidence. b. Employees: Employees faced disruptions with layoffs and reassignments, but Airbnb worked to provide support and resources (Jones & Brown, 2021). The company introduced new protocols for safe hosting and guest interactions, enhancing the work environment's safety. c. Customers: Airbnb's response ensured that guests could trust the platform to provide safe and clean accommodations (Smith, 2020). The introduction of cleanliness standards and flexible booking policies increased customer satisfaction. d. Society: Airbnb supported local communities by encouraging responsible hosting and adhering to local health guidelines (Jones & Brown, 2021). The company's focus on promoting domestic travel helped revitalize local economies. e. Environment: The pandemic, by limiting travel, indirectly led to a reduction in carbon emissions (Smith, 2020). However, Airbnb also emphasized eco-friendly hosting practices and supported sustainable tourism initiatives (Kotter, 2012). Conclusion: Airbnb's adaptive response to the COVID-19 pandemic, utilizing Kotter's 8-Step Change Model, illustrates how a global tech company can effectively navigate external challenges. By prioritizing urgency, clear communication, and swift adjustments to its business model, Airbnb survived the crisis and managed to thrive by addressing the needs of its stakeholders, society, and the environment. This case is an

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

instructive example for businesses in the travel and hospitality industry and beyond on effectively responding to external change.

References: Smith, J. (2020). The Impact of the COVID-19 Pandemic on the Travel and Hospitality Industry. Journal of Travel Research, 45(3), 123–136. Jones, M., & Brown, A. (2021). Sociocultural Shifts and Remote Work during the COVID-19 Pandemic. International Journal of Sociocultural Studies, 20(4), 567–580. Kotter, J. P. (1996). Leading Change: Why Transformation Efforts Fail. Harvard Business Review, 74(2), 59- 67. Kotter, J. P. (2012). Accelerate! Harvard Business Review, 90(11), 45-58. Weiss, J. W. (2016). Organizational change (2nd ed.). Retrieved from https://content.uagc.edu/

MGT435 Week 3 Assignment

Related Documents