1. Seven potential solutions are proposed in the case.

Briefly discuss pros

and cons of each solution. Choose your top two practical solutions and
explain why you chose them over others.
Present More Sophisticated Consumer Reviews

Pros Cons

- Good for client, reassured to
understand the host place
- Good for AirBNB to track good
and bad host
- Host will work harder to provide
better service
- If one host has a bad review than
the host can have trouble renting
their place.
- How much criteria, which
criteria are the best

Collect Other Information about Hosts and Renters

Pros Cons

- It’s confidential
- Search on the web if the person - There can be racism or
is reliable discrimination towards renters

Make It Easier to Reject Renters

Pros Cons

- Good because hosts can decide if - Bad for renters because the host
the renter is reliable or not (Rent can reject the booking at the last
house for partying for example) minute and renters won’t have a
place to stay.

Vary Prices Based on Ratings

Pros Cons

- Good for renters because they - Bad for hosts because they can
pay for a price that correspond to lose money… AirBNB needs to
the real value of a place put into place a system where
they go and visit the place and
 put a value.

Provide Insurance for Hosts

Pros Cons

- If there are some degradation - Only cons are for AirBNB

during the stay because host can take advantage
- More potential customers for of the insurance.
Airb&b -

Add Discounts

Pros Cons

- More loyal customers for airbnb - Less profitable for consumer

- More attractive for renters

Prescreen Hosts and Guests

Pros Cons

- Be sure it’s not a scam , it’s a - detail information of our privacy

real person the host or consumer - no more privacy, to much
- More security for both of them inspection ( inspection of the
house or building)

We chose these two solutions because on the one side, with the “Present more
sophisticated consumer reviews customers”, we believe that the host will improve and offer
better customer service for the renters. On the other hand, with the “Provide insurance for
host”, this will protect the host from bad renters, meaning that if renters break things

2. Using MOT factors, discuss how your two solutions can be implemented
at Airbnb.
 The first main idea that was selected was to make more sophisticated
consumer reports to find out their opinions in detail. This could be very
simple to implement for Airbnb because they already have a system of
customer feedback and they have very good IT people to develop this in a
sophisticated and easy to use way.

In addition, Airbnb is a highly developed company that has the means to

implement this very simply and quickly. Thus, they would offer
customers a more precise advice in order to direct their choices but they
would also give them more confidence because customers would have a
major role in the good development of the company.

The second main idea we thought of is to set up insurances for the guests.
Indeed, many guests may have fears about the condition of their
accommodation because they wish to get it back in perfect condition and
this is not always the case.

Thus, Airbnb could set up this insurance system to reassure its customers.
The company is a global company with many economic resources, so it
has enough money to commit to these insurances because it is necessary
to know how to reimburse them if necessary.

Beyond that, Airbnb has a very large community of users and would
therefore be able to install this for everyone through an IT mechanism.
The group has the means to call on the best engineers to code this
insurance system to make it as efficient as possible.

Finally, Airbnb has a huge number of employees and would therefore be

able to assign more people in the role of "customer contact" in order to be
able to handle the large number of requests that these insurances could
generate.

3. How Airbnb’s community initiative/strategy could facilitate trust in

Airbnb? Do you think Uber should implement the same community
strategy/imitative?Why? Why not?
Cultivating community and maintaining trust among stakeholders is one of the solid
bases of Airbnb competitive advantage. They maintain a community centre that has
the goal to connect with other hosts, enable them to share stories or ask for advice
to other hosts, and also get updates from the Airbnb team. Furthermore, the
company aims to keep hosts and guests safe via different measures such as risk
scoring, 24/7 global assistance made available, secure payments, background
checks and account protection.
Their strategy consists of highlighting notices of customers in order to play the
transparency card. Therefore, customers can see when a host or a guest is bad, but
also when it is a good one. Also, they created an interface where customers, before
renting a house, can talk with the hosts, and discuss potential issues. They know a
lot of information from one another before signing the contract, for example, the
phone number or the address. And therefore, this strategy permits to facilitate the
contact, and thus the trust.

Uber has more or less the same peer-to-peer rating strategy as Airbnb. Indeed, the
clients’ choice depends on the drivers reviews and his location. In addition, the
creation of the trust between the client and the driver is based on the rating of a
biased opinion from the previous customer.

Even though there is a rating on the driver, the time between the car is ordered and
the car has arrived, it is very limited. Therefore, Uber should implement the same
strategy as they create transparency but it is very difficult.