Airbnb: What´s Next?

The general manager for Airbnb in Spain and Portugal, Jeroen Merchiers is pondering about several issue as he prepares to delegate responsibilities in Iberia and take on a larger European role. Airbnb, the peer-to-peer tourist accommodation market place that was one of the most successful representatives of the so called "share economy¿ had experienced tremendous growth since its inception in 2008. The spectacular growth was based, besides its first mover advantage, on the fact that the company knew how to foster the one key ingredient that allows a peer-to-peer online business to thrive: trust. Besides choosing the correct strategy for dealing with the opposing hotel industry association on regulatory issues and with cities and municipalities over taxation and safety concerns among other topcis, Jeroen´s other main challenge was how to sustain the enviable growth the region had experienced in his three year tenure. To that extent several growth initiatives were considered such as addressing more high-end segments beyond the usual budget-conscious travellers or to look beyond the traditional city-break traveler to reach tourists seeking rural getaways or vacation rental properties. As a possibility he wondered if the Pyrenees region was worth looking into but he would be entering a competitive landscape where several other providers, such as the travel service giant Booking.com, already had a strong foothold. But rapid growth into unfamiliar territory brings its own set of issues. Without the right mechanisms in place to continue fostering trust, such rapid expansion could compromise quality and service levels. Merchiers and Airbnb senior management had a lot to think about and no easy answers. How should the company grow in new geographic and demographic segments without compromising the trust between property owners (hosts) and guests that has been at the heart of Airbnb´s success? How should they engage with city officials to answer the regulatory issues? Finally, what should they do to integrate hosts into the business model and decision-making process, in order to strengthen their sense of community and avoid bad press?