Final answer:
To improve Airbnb's competitiveness, the company should diversify its offerings with Airbnb Plus, invest in AI and analytics, strengthen host verification, offer comprehensive insurance programs, engage in governmental dialogue, and promote sustainable tourism.
Step-by-step explanation:
Recommendations for Airbnb to Improve Competitiveness and Mitigate Risks
To enhance its competitiveness in the accommodation market, Airbnb could focus on diversifying its offerings and ensuring a higher standard of customer experience. One recommendation is the expansion of the Airbnb Plus program, promoting properties that meet higher quality standards. This would attract guests looking for consistency and reassurance in the quality of their accommodations. Investment in technological advancements such as AI-based customer service and predictive analytics can also provide Airbnb with insights for potential market expansion and risk management.
In terms of mitigating risks, Airbnb should strengthen its host verification processes and property screening to minimize incidents and ensure guest safety. Offering more comprehensive insurance and assistance programs could also be beneficial. To address the challenges posed by the political and regulatory environment, Airbnb should engage in active dialogue with governments and advocate for fair regulations, promoting its contribution to the local economy and addressing concerns related to housing and the impact on communities.
Finally, focusing on sustainable tourism by providing support and incentives for eco-friendly properties could not only address growing environmental concerns but also attract a new market segment of environmentally conscious travelers.