Name: Shenouda Azer Grade: _______________

Date: _______September 13, 2015 ______________________________

Case #: ______2______ Case Name: ______Airbnb___________________________

1) Describe the Airbnb model? Created in 2007 in a forum where hosts could post room listing, along with description and photographs. In order for an interested gests find their suitable rooms, they can search and filter results with a given options such as neighbors, photos, reviews. After guest finds their room, they can communicate with the room’s host, Airbnb developed a messaging system allows hosts and guest to communicate through Airbnb’s messaging system. Guests submits a request of reservation and the host must respond within 24 hours. If the host did not respond within 24 hours, the reservation gets cancelled. Airbnb punished hosts who does not respond in time by dropping their rate in the search engine. Airbnb charges 6 to 12 percent depending on the price charged. Hosts pay 3 % for each booking. Airbnb hold payment for 24 hour upon the arrival of the guest, and the host receives their money with direct deposit or with pay pal. 2) What should Airbnb do to avoid a repeat of the EJ incident? The case provides several suggestions. Choose one suggestion, or provide one of your own and tell me why. In order for Airbnb to avoid the EJ incident: they should: 1) Present more sophisticated reviews: they have to give incentives for people who writes reviews. 2) Collect other information about hosts and renter: Before the hosts and renters profile were incomplete and lack of information. Host must provide enough information about what they are looking for in their renters. 3) Make it easier reject renters 4) Vary prices depends on the rating 5) Provide insurance for hosts 6) Add discounts for customer who have a good experience and might become a regular customers There are many suggestions have been represented in the article. I am in favor with providing insurance to the hosts. For instance in the case of EJ the host found their house missed up and got stolen, so providing insurance will be another option for keeping hosts providing their rooms for rent. 3) How should Airbnb further facilitate trust between renters and hosts? What should they do? In order for Airbnb to build and gain trust of their customers, they have to build and improve their reputation system though collecting information about the renter and host, provide insurance to the host, and make it easier to reject renters. They should prescreen their hosts and guests for their background and their public profile and prove their phone number and address is right and correct. 4) Airbnb and eBay are similar in that both companies run online marketplaces that match buyers with sellers. How should Airbnb's reputation system differ from that of eBay? Airbnb and eBay are similar to each other, yet Airbnb's reputation system will differ from eBay if they integrated into their policy provides discounts for their continued customers, vary prices upon reviews, and prescreen their guest and hosts.

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