Leading Innovation and Cultural Change (LICC) Case Study

Introduction To Organization

Innovation refers to practical adopting and implementation of new thoughts and ideas that outcome in to launch of new products and services to enhance their improvement in the market and satisfy customer needs (Landon et al, 2020). Airbnb is an accommodation within an online market as well as hospitality services that aid customers to lease and rent. The company owns many properties that gather a service fee and brokerage fee percentages from the guest per booking as well as host. The firm also operates through mobile apps that allow customers to discover, list as well as book distinct accommodations throughout the globe (Airbnb, 2023). The application facilitates hosts to list their properties for lease as well as allows guest to lease or rent on short term basis that involves apartment rents, vacation rents, homestays, tree houses, hotel room and castles. Airbnb has presence in various cities of the globe with strong online presence. The report will discuss about challenges and issues faced by Airbnb to commence its business operations’ in global market. The report will also highlight present innovation processes adapted and implemented by the company to grow successfully at global level. The report will also include critical evaluation of changes implemented within the organization.

Airbnb’s Profile And Background

Airbnb was introduced within US, California in 2008. They are located globally with various accommodations. The company was established when two designers has spaced to share hosted 3 travelers looking to place for staying. The founders of company gebbia and chesky started using their own rest as a bed as well as breakfast to produce additional bucks to recompense rent (Lacoma and Rawes, 2021). They saw an increasing market of the perception and established a website. At present the business has millions of guests as well as hosts have created free Airbnb accounts to facilitate outstanding view of the globe. The company offers cozy cottages with attracting penthouses that satisfy the customers. Hosts on accommodation are everyday individuals that share their globe to offer guests with the feeling of belonging as well as being at home. The firm believes that guests, visitors and the community where they are operated are all stakeholders. The company has a responsibility to satisfy the expectation of stakeholders and thereby increases its brand images in international market. The mission of Airbnb is to provide a place where all people can belong anywhere in the world. The major values of company are to unite with the community and provide care and encouraging environment for their hosts (Airbnb, 2023). The company is determined too creative innovation and creativity within its business operations to build their goals into reality.

The company has experienced a range of ups and down within business and with this struggle they finally became public in year 2020. The company does not own properties but they act as mediator amongst those who want to rent spaces along with those who look for space to rent out. The brand is listed over the global map and has around 5.6 million listings in more than 200 countries around the globe. The customers clicking on listings an see various information regarding size, space, check-in, amenities, ambience, pricing and various other information. The detailed description is also provided on house rules, space, safety measures and availability on a single application. Further, by doing assessment increasing trend has been found in the financial position and performance of Airbnb. By taking into account below below-mentioned statistics it can be stated that company has captured high market share which results into high sales & profitability as well.

Current Innovative / Change Processes

Key challenges

Travel and hospitality industry is facing numerous challenges over the long time period. As the globe is evolving with continuous changes hospitality industry has to adapt and implement new technologies, trends as well as take care of customer preference to survive in the market.

Sustainability challenges

The major challenges faced by Airbnb within industry are a lack of transparency that leads to greenwashing (Lam at al, 2021). This includes false claims regarding environment impact. Airbnb have adopted certifications as well as green labels to enhance their creditability to visitors. These tags help company to fake their changes to enhance environmental practices. The lack of transparency has Costs Company in sustainable certifications. They find it challenging to pay for certificates fees as well as various other costs linked with accomplishing sustainability targets (Lew et al, 2020). Various countries have different requirements for labeling goods as environmental friendly that makes it challenging for clients from region travelling to know which better option for them is. There is also requirement for enhancing education and knowledge about sustainability practices for Airbnb to obtain certification. The properties often consume energy for cooling, heating, lighting as well as various appliances (Yun et al, 2020). The company has faced issues in managing waste generated by visitors as rental properties generate more waste that harm the atmosphere and put negative impact on brand image of the company. In various regions firm has faced water scarcity as a growing concern among customers. The properties visitors also relies on transportation that contribute to pollution and various other issues harming environment.

Technological Adaptation

The hospitality industry has faced various challenges in terms of adopting new technologies to improve visitors experience, overall effectiveness as well as streamlining operations. Airbnb has faced major shifts in automation as well as digitalization. Nevertheless with the changing digital challenges the company has faced challenges that require innovative technologies (Cichosz et al. 2020). The main issue in Airbnb accommodation is meeting the rising expectations of modern visitors which require personalized experience. Advancement in technologies plays a crucial role in allowing rental properties to customize guest communication through their stays. The company can adopt customer relationship management systems as well as data analytical tools that can assist the company to analyze and gather visitors demand allowing them to modify service and provide offer to particular guest.

Digital landscape

With major chains as well as independent organization Airbnb is competing in a market and has faced challenges related to consistency on listings on online platforms. With various booking platforms available in the market has lead to confusion in the mind oof the customers. A customer relationship management technology channels that involve visitor profile data management with a continuous de-duping, pre stay communications, check-in as well as cleaning (Alblooshi et al, 2021). The company has faced issues in contactless check in for staff to authenticate a validate ownership and guest ID to make an online booking of room. The company has faced identity verification issue that verifies clients’ distinctiveness as well as documents both offline and online. Advance technologies can help the company to identify real identity of clients through cross checks. Accommodations background checks are essential for a range of reasons. They help in making sure the safety and security for both employees and well as guests. Background checks also assist Airbnb to prevent liability problems for employers if they have any criminal history (Senbeto and Hon, 2020). The firm also faced instant booking that confirm automatically. The firm also lacks in review and feedback sessions from both hosts and visitors. This can have a huge impact on their position and affect their brand image.

Global expansion challenges

In today’s advanced globe expanding company internationally offer access to diverse customer base, new markets as well as increase profits. But it includes various challenges which Airbnb faced within expanding their business at large scale in various countries. The major issues that the company faced are in development and expansion of its strategies. As the firm expanded into new areas, they have faced an extensive range of various regulatory structures that impacted its capability to operate globally (Prantl et al, 2022). Local rules and regulations have made it challenging for the firm to legally rent their apartments and homes that produce a strong obstacle for them. They also faced challenges related to balance development with facilitating a continuous as well as high quality client’s experience. The company has expanded quickly and ensures that the property listed on its online channels met particular norms and standards. The company ensures that guest has a positive experience at hotels or accommodations and satifies their preferences. As the company grows has also faced rising competition from other firms in an accommodation market (Mikalef and Krogstie, 2020). This has made it challenging for company to stand out as well as maintain its market value. Airbnb quick development also place stressed on their internal as well as culture operations.

Legal issues

Airbnb has faced various challenges related to regulatory and licensing requirement to operate its business in various countries. They need to obtain licenses, clearance as well as permits from various governments, authorities, operating resorts, hotels, travel agencies and many other commercials (Flori?i?, 2020). The company needs to ensure fulfillment with these legal authorities to mitigate legal compliance. Airbnb has faced issues related to license and permits on guest house, hotels and other accommodations. This includes health department approvals, compliance with building regulations, police verification as well as health department approvals. The company has to obtain required food license on manufacturing, maintaining hygiene norms and carry out regular inspections to ensure safety of its visitors (Breier et al, 2021). For company it is necessary to compliance with guidelines, maintain proper data and financial security for regulatory compliance. With the awareness of online bookings channels, OTAs offer a crucial role in Airbnb. These channels must link with laws and regulations. Airbnb must maintain safety and security within their accommodations using CCTV, emergency exit and safety equipments to ensure the well being of guests.

Safety and security issues

Perceptions as well as issues of security have been growing dramatically in fast few times. Airbnb needs to defend their staff, clients and other stakeholders from this issue. There are not sufficient security to provide protection and response to the company. This is an incontrovertible fact that safety as well as protection issues have been increased within Airbnb. Safety as well as security has been a complex multidimensional notion with a huge variable of components such as personal safety, customer protection, health and sanitation, political stability and legal protection of visitors (de Larrea et al, 2021). With a raised awareness of security devices such as CCTV, access control, fire alarm and many more devices has been used by hospitality industry. It is important for the Airbnb to do physical audits in safety and security then privately owned hotels to submissive with group customary. There are lots of options in which Airbnb can accomplish by adopting comprehensive security for conducting safety audits and create safe atmosphere for visitors that enhance their experience at accommodation. The company should include safety and emergency response plan by coordinating with local services, evacuation plans and offering regular training for staff (Hussain et al, 2020). The can also ensure authorized peoples who have access to certain areas of accommodation including employees area and guest rooms. Airbnb must ensure its online systems as well as visitors’ information is safe from hackers.

Micro environmental analysis: SWOT analysis

Macro environmental analysis: Pestle analysis

Barriers to change within the organisation

Business unit faces barriers in relation to introducing and implementing change when employees are not aware about the changing business aspects. Further, usually employees do resist when they have no idea about the change and its relative benefits. In addition to this, employees also feel insecurity and discouragement when new practices are going to be implemented. Thus, business unit is required to motivate personnel towards change adoption by practising effective leadership and communication.

Current Change Processes And Critical Evaluation Of The Organization

In the digital era, Airbnb has recognized the needs and demands of customers. The company had focused on messaging and quality that changes the hotel industry as well as modernized it for guests that prefer online information. The company concentrated on offering seamless guest experience on both mobile applications and website. The channels provide user-friendly interface, designs as well as secure payment systems that provide to boost customer retention as well as repeat bookings online portals (Ruel and Njoku, 2021). However, the company needs to more focus on grasp with rising restrictions and regulations of short term rentals in areas where rental prices are skyrocketing as well as tourism is high. The company invested in data analytics and customer relationship management systems to personalize their demands, previous booking and preferences as well as search history. This customized approach enhanced customer satisfaction as well as encouraged repeat bookings (Karatepe et al, 2020). The firm has taken advantage from social media to show visuals of accommodations and locations. The channel attracted customers to share their experience by user generated content, offering a sense of community as well as authenticity about the brand.

The company has understood the significance of organize traffic and has implemented a search engine optimizing strategies to optimize its website for appropriate keywords connected to travel destinations (Pateli et al, 2020). The channel localized its advertising efforts to target particular areas as well as cater to the cultural preferences of every marketplace. The firm invests in content marketing by using storytelling to connect with its target customers. The channel feature convincing narratives regarding hosts as well as unique properties, contribution emotional connection as well as inspires trust amongst potential guests. On the critical note, the firm needs to identify market opportunities’ where guests need more affordable as well as authentic accommodations where hosts spare rooms to rent out (Oskam et al, 2022). The company should aim to address the requirements of both hosts and travelers contributing efficient solutions.

Airbnb welcomed travelers from various regions of the globe within their communities. The company is committed to serve its community. The company’s team get together to engage in community fund. They worked with GlobalGiving supported with program and strategy design offering guidance in areas including grantee absorptive capacity, flexible funding and nonprofit communication (Do and Luu, 2020). However the company source funding candidates in collaboration with GlobalGiving. Company’s host advisory broad reviewed 500 of GlobalGiving’s trusted nonprofit partners; they chose those workings in tactical area economic empowerment, education and COVID 19. The firm’s global reach as well as market penetration has facilitated it to offer a strong presence in various counties around the globe. Airbnb by connecting guests with distinctive properties has disrupted the conventional hospitality sector as well as offered a platform a platform for peoples to offer profits from their accommodations (Wang, 2022). This innovative model of business has brought affordability and convinces to guests and also opened up new profit streams for hosts. The major factor that has contributed in firm’s success is capability to adapt as well as engage in business models. Airbnb constantly introduces innovative features as well as services including experiences that improve customers experience as well as differentiate them for competitors (Jayawardena and Gamachchi Vithanage, 2022). These programs have not diversified company’s income streams. However, they should also strengthen its position as an arranger in the distribution financial system. The company should focus on local economies by inspiring tourist as well as support small companies. They can promote off the beaten path locations through its channels, the firm encourages visitors to explore areas that might have previous overlook by conventional tourism platforms. This rising tourist association offers further returns from local firms such as shops, restaurants as well as service providers.

There is range of opportunities for innovation with the Airbnb channels. The firm can continue to engage its customers experience through technological an advancements including search algorithms as well as customized recommendations. The company adapts its offers o cater to various preferences and cultures while evolving continuous quality standards. The company can tap into new areas approximately the globe (Osei et al, 2020). In addition, there is unemployed market opportunities in toward the back areas that firm can discover. Many guests look for attracting views when planning their trips which make rural destinations better options. Airbnb provides services such as transportations options as well as food delivery options into their channel that develop convenience for guests.

Airbnb has giving importance to expand of its host community by actively attract hosts form a range of backgrounds and contributing them with wide-ranging support by tools as well as resources. This technique ensures a diverse range of property choices on the channel, catering to a range of budgets, locations and preferences. The company diversifies visitors through their non discrimination policy (Ozturkoglu et al, 2021). That prohibits hosts from refusing booking on the basis of religion, sexual category, race and sexual direction. This offers a apparent communication promoting diversity as well as alongside favoritism. To offer inclusivity within organization they established open homes where hosts provide free accommodations in dislocation, immigrant medical patients and any disaster. Airbnb also encourage diversity by its marketing initiatives that feature diverse people as well as emphasize positive traveling experience. This offers a strong message regarding reduce in difference as well as offering multiculturalism.

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The company’s progression in technology has brought conventions into line and also accelerates it to grow fast moving as well as effortlessly global firm. The firm has made huge investments in innovative technologies to attract the guests. Their platforms have been formed to enable guest to effortless search for properties with particular requirements including price range, locations, amenities and many more (Parvez, 2020). Nevertheless they should also add features like secure payment systems and instant booking to streamline the booking procedure while making sure that trust as well as safety for both customers and accommodation staff.

Another significant strategic goal of firm is to maintain sustainability. The firm understood its responsibility for ecological conversation as well as aim to reduce its impact of local community (Morozov and Morozova, 2022). They have set target for reducing energy consumptions as well as promote sustainable practices among hosts through programs. The company also offer support for sustainable education and increasing awareness programs with companies carry out home energy audits to help hosts in encourage the energy efficient too its homes. The company is also responsible to become net zero firm by year 2030 (Lim, 2021). This includes education and encourages hosts to implant sustainable programs such as control renewable energy to mitigate the carbon footprints. The firm works with suppliers to handle these carbon emissions through the sustainable programs.

Recommendation

• Sustainable practices: the firm should invest in accommodations’ considering walking distance from events to reduce carbon footprints. The company should reduce plastic consumption by implementing on products that are reusable such as instead of plastic spoons offering silverware and using microfiber clothes. It is essential for the firm to provide place for reusable products to encourage environmental friendly lifestyle for the visitors at the hotels. The company’s staff can also use chemical free and plant based products to minimize the visitors’ carbon footprints. They should buy cleaning goods that are non toxic as well as good for environment. The company should also invest in sustainable energy to make sure that their properties are installed with sustainable appliances that use renewable sources of energy. This will also help company to reduce cost of their unnecessary expenses and bills.
• Enhance guest communication: The Company should also enhance guest communication to ensure visitors have satisfied as well as happy with their stay. The company by providing visitors with concise, clear and timely data makes them feel values and satisfied. The hosts with helping them in understanding amenities and services can provide pleasant experience to them. The company should keep open communication with visitors to handle any difficulties they might be facing. They should send emails prior to guests stay with information regarding accommodation and local areas. This involves information on services availability and many more. Another manner to enhance guest communication is by using social media channel by posting content related to accommodation and activities within location. They can also gather information form customers using feedbacks and survey during check-out to get better understanding of their views related to their experience.
• Personalize visitor experience: the company should train its staff to understand guests’ needs and remember their s. This can help Airbnb to offer more intimate and personal touch among both staff and guests that values feelings. They should also offer small touches such as welcoming gifts and add customized notes within their room. The company should also offer additional services like spa; babysitting and various other events to ensure visitors feel special and attract them. This also provides customer with unique and memorable experience that eventually increase loyalty for firm.
• Utilize technology: Airbnb should use technology that includes online check-in, interactive room controls and automated room cleaning that can satisfy customers. They should invest in property management system that facilitates hotels to manage reservations, control room availability, check-in and check-out. This will help the hotel to track its visitor arrivals and departures so that they can prepare room in advance.
• Reward staff: They should also train and reward staff to offer a positive work atmosphere as well as motivate them to offer better services to guests. This involves customer service training, hospitability training which is necessary to get updated with technology changes within the organization. This is also important to understand and identify visitors’ needs and demands in timely manner which advancement in innovation.

Conclusion

In summing up, Airbnb is a leading hospitality company which is implementing and adapting innovation within their business operations’. The company is also focusing on its customers experience by implementing various innovation and technologies that has enhanced their performance in various countries around the world. The firm by appreciating their guests with outstanding services can grow in long term in world. The company by investing in various tools and technologies can enhance customer experience and save their cost to grow at large scale. This also helps the firm to gain competitive advantage and build strong brand reputation and image in the minds of the guests.

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References

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