Airbnb, Inc. 2019

Abstract

The case focuses on the theme of overpopulation and overtourism, which has led to disruption in communities and rising public and government pressure on companies like Airbnb. It brings up the problems Airbnb is facing and the actions the company has taken in response to these issues. The case timeline begins around 2016/17 when multiple protests occurred around the world in response to raising inflows of tourists and the resulting increases in rents in major tourist cities. The key decision maker (protagonist) of the case is Brian Chesky, co-founder and Chief Executive Officer and Head of Community of Airbnb, who finds his company a direct target to attacks from local residents and regulators alike. He will have to make decisions about the strategic direction of his company and how Airbnb can sustain its profitable business model while, at the same time, addressing the issue of overtourism and responding to the negative backlash from the public. Or does Airbnb need to completely change its business model, shifting its focus and company mindset towards shared (economic, social and environmental) value creation, and what would that new business model be?

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