Top Three Takeaways from the Journey of Sharing Economy

Top Three Takeaways from the Journey of Sharing Economy

As I write this blog, I finally realize that this intensive journey is coming to an end. I’ve learned a lot meanwhile had so much fun. It opens up a new world and inspires me in my career thinking. The course integrated with self-study, group work, field work, office visit, etc. I find that this mode of study is effective than the normal classroom lecturing style. By interacting with MBA students, I also learned a lot about how they think and how they work and feel that there’s a long way for me. Besides, I have three major takeaways.

1.     The Power of Excess Capacity

Excess capacity, as the book Peers Inc states, is the latent value. Once making use of it, it would blossom and generate great ROI for both producers and users. The launch of Airbnb, Uber, Zipcar and other sharing platforms are genious. Taking Airbnb as an example - by making more efficient use of the excess capacity of rooms, Airbnb uncovered new way of gaining extra value which is useful to consumers at the same time. The sharp marketing insight is crucial to discover the under-utilized inventory; the proper marketing operation is essential to utilize the excess capacity into value.

2.     Customer Experience

Customer experience is highly valued in all peer-to-peer platforms. From company research and course material reading, I found that companies do try their best to enhance user experience. Airbnb has built a hospitality department and created nine hosting standards for hosts to follow in order to improve guest satisfaction. Uber has a special reward program to its drivers – taking care of its drivers, and let drivers to take care of customers. However, customer experience is complicated. By experiencing from the user side, I spotted many flaws in those platforms. The biggest one is the company customer service which needs to be improved.

3.     Strategic Vision

The office visits to Airbnb, Uber and Feastly and meeting with companies’ executives are thought provoking. Staying with strangers can be unsafe and risk. By bringing out a public reciprocal review system between host and guest, Airbnb turns its worst disadvantage to best opportunities. Uber uncovers other opportunities by dealing with helping a son to call a uber for his mother. The strategic vision is what I need to learn from those companies.

Airbnb Office Visit - Meeting with Chip Conley

Airbnb office visit was the part that I’ve always been expecting before the trip and it turns out to be the most worthwhile part ever. Meeting with Chip Conley, the Head of Global Hospitality and Strategy for Airbnb, is definitely the best part during the visit. Chip’s job is to help Airbnb regulate hospitality standards, improve guests’ satisfaction on the entire trip and evolve Airbnb into a full-fledged hospitality company.

Chip stated that hospitality is the most important direction that the company is working on although it is also the most difficult part at the same time. “How can we deliver hospitality when we don’t have any employee?” said Chip. As the hosting community is growing in a fast pace, it is of vital importance for Airbnb to ensure the quality delivered by hosts. To make the Airbnb guest experience more consistent from stay to stay and more reliable, he had created nine hospitality standards for hosts to follow – communication, check-in, accuracy, cleanliness, etc. The host-guest reciprocal review system is also essential for Airbnb to conduct quality control and track guest satisfaction. It’s interesting to know that 70% to 75% guests and hosts on Airbnb review each other while there are only less than 10% guests leave reviews for average hotels. Airbnb has a proper feedback loop which normal hotels don’t have. Guests and hosts are encouraged to leave reviews to each other after each stay. They can’t see the review left by the other party until they write a review too. All the reviews are open to public for future guests to look at before they make a reservation. The opaque review platform turns the worst characteristics (non employees personal hosts) to the best opportunities.

When Chip was asked about the competition with hotels industry, he confidently said that Airbnb perfectly fits the gap in the travel industry so it aims to become a global super brand of travel not only an alternative to hotel. He said that travelers want unique and personalized travel experience that most of the global hotel chains cannot afford. That’s why the concept of Airbnb – live like a local – works really well in the industry. Also, a research shows that people live with Airbnb tend to spend longer time to explore the city than regular hotel guests. We have enough reason to believe firmly that Aibnb is the market trends.

Chip is a charismatic leader. I can see the enthusiasm, passion and hospitality emanated from him. Thanks to this great opportunity that I can learn directly from the famous hospitality guru.

First Lodging Experience with Airbnb

The lodging group chose to have the first lodging experience with Airbnb. On August 14, we stayed at a modern apartment which is conveniently located 2 blocks away from Golden Gate Park with easy access to public transportation and restaurants. The apartment features many Victorian/Edwardian characteristics like high-arched ceiling and large tall windows. There are 2 bedrooms, 1 bathroom, a fully equipped kitchen, in-door washer and dryer. Fresh linens and towels are provided. The apartment and amenities are exactly what is shown on the property page and actually match our expectations. 

The host is nice and helpful. She was available to answer any question before arrival and during our stay. She was flexible enough allowing us dropping up our luggage and checking-in earlier. She left a blue warm welcome booklet on the table including WIFI code, instructions of some amenities, recommendations for restaurants, public transportation information, which is really thoughtful.

The whole experience is satisfying in general. However, we all agree that the hospitality part is somehow missing. Since we did not meet the host in person, there’s a lack of interaction. She did apologize for not being on site to provide more help when we reached out to her. But I personally think the host should be the person who initiate the first conversation and express welcome. In addition, when we texted her, no matter when we have dropped off our luggage, or we successful checked-in, or we have left for a walk and would go back again, etc, there were no response. We’d like to be polite and inform the host what’s going on in her apartment when she was not there. We did expect more communication not just related to problem solving.

Room service is the one that I did miss about the hotel during my stay with Airbnb in a chilling night. I wanted a hot chocolate at night but I didn’t want to go out at that time. If I was staying at a hotel, I can directly call the room service. People may not always need room service but if there’s a need, it’s always nice to get satisfied.

It's hard to train hosts to maintain service standards since they are not employees. However, hospitality can be the major issue that guest satisfaction depends on. This is also where Airbnb can improve.