Concept explainers
Videos
Analytics at Airbnb
Airbnb is a global community marketplace that connects travelers seeking accommodations with hosts who oiler places to stay, usually at a price one sixth the rate of traditional holds. Although less than 10 years old, Airbnb has been used by more than 60 million people in 190+ countries. The rapid growth is due not only to its innovative business model of shared lodging, but also to the technology that makes the service work (see photo).
Further, by experimenting with multiple configurations (i.e., A/B testing) of postings, designs, promotions, and information, they can determine which ones yield belter results. The algorithms that match clients are constantly being updated, services are modified, and new variables are introduced. For example, when regression analysis showed that the quality and type of photo attached to a listing affects guest choices and satisfaction, the company offered free professional photography services to their hosts. But numbers don’t tell the whole story, so reviewer comments are “mined” to discern intent and verified when possible with subsequent slays and reviews.
Airbnb’s shared lodging model of low-cost accommodations can be copied by competitors, but the hospitality of its unique hosts is far more difficult to duplicate. Founder Brian Chesky acknowledges that the success of his business is first and foremost about the hosts. With satisfied hosts, satisfied guests will follow. Determining what factors are important to hosts is a first step to providing them with the tools to help them succeed. Data scientists at Airbnb have created a model that learns host preferences for accepting accommodation requests based on past behavior. For example, an analysis found that hosts located in larger markets tend to accept guest requests that maximize occupancy, while hosts in smaller markets like a few days between bookings. Preferences for “last minute” versus “far in advance” reservations also varied by host characteristics. These and other findings from the model affected the order in which available listings were presented to guests. As a result, both the booking conversion rate and satisfaction with the booking process saw a significant increase.
Airbnb/Stock/Shutterstock
One mark of Airbnb success? Hotels that once eschewed the Airbnb experience are now posting unused rooms on Airbnb to find new customers.
What risks does Airbnb absorb in its business model? How does it balance these risks?
Want to see the full answer?
Check out a sample textbook solution
Chapter 17 Solutions
Operations and Supply Chain Management 9th edition
Additional Business Textbook Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Operations Management: Processes and Supply Chains (11th Edition)
Operations Management
Operations Management, Binder Ready Version: An Integrated Approach
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Business in Action (8th Edition)
- Contrast and compare the use of constant-time and CPM networks.arrow_forwardwhat are the potential advantages and disadvantages of increased automation in service delivery.arrow_forwardIn order to better help airlines with flight scheduling, Decision Support Systems may take into consideration the following factors.arrow_forward
- A customer calls requesting that a service technician be sent to her residence immediately to fix her cable box. It is late in the evening, and service technicians cannot be sent out at this time. You see that she has an appointment for a service technician to be sent tomorrow, but she is becoming more upset because she thinks her need is urgent.arrow_forwardUniversal bus service operates seven days in a week. A trip from Delhi to Rajpura takes six hours by bus. A typical time table of the bus service in both directions is given below. Delhi - Mumbai Mumbai - Delhi Flight No Departure Arrival a 06.00 12.00 b 07.30 13.30 c 11.30 17.30 d 19.00 01.00 e 00.30 06.30 Flight No Departure Arrival 1 05.30 11.30 2 09.00 15.00 3 15.00 21.00 4 18.30 00.30 5 00.00 06.00 The cost of providing this service by the transport company depends upon the time spent by the bus crew (driver and conductor) away from their places in addition to service times. There are five crews. There is a constraint that every crew should be provided with more than 4 hours of rest before the return trip and should not wait for more than 24 hours for the return trip. The company has residential facilities for the crew of Delhi as well as of Rajpura. Find which line of service be connected with which other line so as to reduce the waiting time to the minimum.arrow_forwardExplain how a Web presence can improve the performance oftraditional brick-and-mortar operations.arrow_forward
- Discuss the principles of IT service management (ITSM) and its significance in ensuring efficient IT operations.arrow_forwardRefer to the image, Answer the three questions.arrow_forwardBest-ride airlines that operates seven days a week has the following time-table. Delhi - Mumbai Mumbai - Delhi Flight No Departure Arrival 1 7.00 8.00 2 8.00 9.00 3 13.00 14.00 4 18.00 19.00 Flight No Departure Arrival 101 8.00 9.00 102 9.00 10.00 103 12.00 13.00 104 17.00 18.00 Crews must have a minimum layover of 5 hours between flights. Obtain the pairing of flights that minimizes layover time away from home. For any given pairing, the crew will be based at the city that results in the smaller layover. For each pair also mention the city where crew should be based.arrow_forward
- The threats of new entrants at southern Hospitality Restaurant brings low switching costs, moderate cost disadvantage, and moderate cost of doing business.arrow_forwardABC Solutions is a traditional company in textile industrywith a combined workforce of 150 staff. Due to increased levels of competition, this company is now increasingly finding it difficult to compete – especially as the larger companies seem to be a little more innovative, agile and responsive to client requirements. Management have noticed that staff, especially the highly skilled ones, are now leaving the company to seek work elsewhere (in these larger companies). This has meant appointing new staff and undertaking a considerable amount of re-training to replace those that have left the company. Apart from impacting on core business operations, ABC Solutions has started witnessing a drop in its profit margin. Given this position, senior management at ABC Solutions have decided to implement a performance measurement tool (PMT) that would allow them to align the strategic, management and operational requirements of the business. They are therefore considering the adoption of the…arrow_forwardABC Solutions is a traditional company in a textile industry with a combined workforce of 150 staff. Due to increased levels of competition, this company is now increasingly finding it difficult to compete – especially as the larger companies seem to be a little more innovative, agile and responsive to client requirements. Management have noticed that staff, especially the highly skilled ones, are now leaving the company to seek work elsewhere (in these larger companies). This has meant appointing new staff and undertaking a considerable amount of re-training to replace those that have left the company. Apart from impacting on core business operations, ABC Solutions has started witnessing a drop in its profit margin. Given this position, senior management at ABC Solutions have decided to implement a performance measurement tool (PMT) that would allow them to align the strategic, management and operational requirements of the business. They are therefore considering the adoption of the…arrow_forward
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,