verified on airbnb
(this was originally written as an assignment in the cca dmba operation & systems course taught by marty low]
Airbnb is in the business of verified localized connections in the rental of unused space & time- in the context of an unforgiving housing & jobs market. To break that dense definition down into digestible chunks:
Airbnb is in the business of Verified Localized Connections.
Verified, what does that mean? A key component of interactions on Airbnb, as compared to interactions on any other platform for purchasing things- is the requirement of a gov’t issued ID verification that you are, in fact, who you say you are, before being able to do business as a renter or host. This verification allows for the sense of security in booking rentals and experiences; as a renting guest, I feel like the people who are offering their spaces must have been vetted in the same way I had to be, if not moreso. The value associated with this verification also comes up in the reviews. Not only am I as a renter able to see how a host has been reviewed, and therefore “verified” by all the people who have stayed at their place, but I as a renter am subject to the review of hosts as well, so other hosts can “verify” if I’m a good tenant by their standards. The value of verification is also aggregated by Airbnb, as more and more verification occurs, it becomes better known as a trusted facilitator of connections.
Airbnb’s facilitation of localized connections is manifested in the functionality of their platform. Need something to do, or a place to stay, in a very specific location? Airbnb’s website and app will help you find that. The value of the connection for searchers is in finding the right place in the specific place- where they otherwise may have little knowledge of where to stay or what to do. For hosts, the ability to have their space shown to people who are searching in the area is valuable in the way that an advertisement is valuable- creating awareness for a shopping customer.
Airbnb is in the Business of The Rental of Unused Space & Time (and Resources?)
Airbnb gives owners & renters the opportunity to recoup the value of excess residential space- by renting out that space to people who are looking for a place to stay in the local area. The owners are also “renting out” the additional time spent maintaining that space on Airbnb, as well as any time spent entertaining the guest. Guests in turn are renting the unused space at the “value” of that unused space, which is generally at a lower value than a space that has been designated as a “hotel hospitality” space. This recoups value for the guest, who is “profiting” from the difference in the valuation of space between home & hotel, even in the context of a single neighborhood in a city.
The guest, if they’re using Airbnb Experiences, is “renting” the time & insights of the tour guide, trainer, or entertainer that they’ve chosen to experience the space with. The host is designating time that may otherwise be unprofitable for them, to create the experience for the guest and derive monetary value for it.
Airbnb’s Business exists in the context of an Unforgiving Housing & Jobs Market.
I don’t believe Airbnb would be as successful in creating the value the way it has if: we weren’t in the midst of an inaccessible housing market to most middle class buyers, and if we had a jobs market that provided adequate employment and compensation to workers. If the housing market were accessible financially, homeowners wouldn’t feel compelled to rent out areas of their home in order to make ends meet, if the jobs market was adequately compensating workers, wokers would not feel compelled to market free time for additional income. The value that Airbnb creates for guests and hosts is primarily based in the concept of profiting off “extra” space and resources, which only seems “extra” in a context where excess of non-financial resources is a financial detriment.
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Photo by Inside Weather