MBA576 Week 3 Peer Responses

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Week 3 Discussion

Andrew Head

MBA576 Operations Management

Dr. Kevin J. Loy

Park University

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9/1/2021

Abstract

In this discussion I play the role of an independent consultant for this assignment and Airbnb is the researched company modifying its operations to attract Millennials. This is a combination of impact study and recommendations of how Millennials are impacting the company and how the organization should be trying to go after the Millennial market. In addition, risks are identified.

Week 3 Discussion

Millennials are one of the most talked-about, written-about, and agonized-about generations (Bye, 2017). Bye (2017) also provides the statistic that 92% of Millennials believe that business success should be measured by more than just profit. So how is it that a business should attract Millennials instead of allowing this large group of consumers? As an independent consultant, I present the example of Airbnb.

Airbnb is a web platform that offers a hosting service where property owners rent their property for a temporary or extended period. Given that Airbnb is an internet-based company, must attract this group or face a severe degradation of their business. Airbnb is also an exemplary example of a disruptive business model, showing that satisfying the consumption needs of Millennials can be a point of business success (Vargas-Hernández, J. G., & Rueda Gómez, L. V., 2019). A disruptive business model uses technology to breaks with the functioning of industries, jobs, forms of consumption, and sale of goods and services, considering, in turn, the behavior of individuals and their expectations (Vargas-Hernández, J. G., & Rueda Gómez, L. V., 2019).

The model of using technology in renting property as Airbnb does shows the sheer number of consumers that can be reached. The company does this via an application that allows searches all over the globe. Planning a trip with this app allows a stay outside of the standard hotel. Many of these properties can be booked for a single night, proving to be useful for any type of adventure. This is important because the tourism sector is one of the industries with the greatest presence of young individuals (Vargas-Hernández, J. G., & Rueda Gómez, L. V., 2019).

There are some risks involved with this endeavor of attracting Millennials and the risks should not be ignored. Stevenson (2021) outlines safety and liability are two critical issues in many instances. The consideration of these two factors is just as important to Millennials as well. Prevalent issues with Airbnb are reports that owners have cameras on the property, possibly in areas where there is an expectation of privacy. In the event the issue is not addressed, bookings through Airbnb will likely see a decrease.

Stevenson (2021) also addresses global product and service design by outlining virtual teams. Airbnb must have some type of virtual team ready to assist all consumers with issues that arise with their stay. In the event the property is overbooked or not meeting the standards advertised, it is vital that Millennials can get that issue resolved.

To attract and maintain the millennial group as a consumer, Airbnb should perfect their booking experience. Ensure the application works appropriately any time a consumer logs in. Airbnb should also ensure the safety of the guests no matter where they are staying and be able to resolve issues. In addition, keeping the Millennials as a customer will require the lowest fee possible. Even though 60% of all guests who have ever booked on Airbnb are millennial tourists (Vargas-Hernández, J. G., & Rueda Gómez, L. V. (2019), there is market share available to be had.

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References

Bye, D. (2017). Millennials Matter : Proven Strategies for Building Your Next-Gen Leader. Broadstreet Publishing Group, LLC.

Vargas-Hernández, J. G., & Rueda Gómez, L. V. (2019). Consumption Characteristics of the Millennial Generation and Strategies Implemented to Satisfy Them: Airbnb Case. ANWESH: International Journal of Management & Information Technology, 4(2), 1–6.

Stevenson, W. J. (2021). Operations management. McGraw-Hill Education.