In present scenario, customers in the market are more conscious about the quality of products and services rather than price. They are ready to provide high price for premium quality of goods as well as services. Managing the quality of products or services is very important especially in service sector. As this factor has direct as well as significant influence on the behaviour of customer and also on the reputation of firm. It is required by an organisation to use technology as well as implement quality control system within an enterprise. As this strategy will assist business entity in reducing the cost as well as enhancing the attributes of goods. Managing quality in hospitality tourism and events is also important in terms of providing high level of s
The present report focuses on issues that are being faced by Airbnb in context of managing the quality of services. It also emphasizes on determining the competencies as well as potential of firm in terms of enhancing the attribute of goods.
Problems Currently Experienced By Airbnb
Airbnb Company is recognised as a leading organisation operating in hospitality sector. Many tourists or guests have blamed an organisation for conducting the fraud. Another issue was website accused of making it too easy for scam Artists. This entire factor has direct as well as negative effect on the reputation of an enterprise. It also has major impact on the sales as well as profitability of an enterprise. As per articles and news, Airbnb had to face short as well as long-term losses which have adverse impact on the financial performance of firm. These problems were faced by an organisation due to ineffective management (Heizer,2016) Due to ineffectual; customer services business entity often leaving holidaymakers on the streets. This factor led to cancellation of booking. Ineffective management as well as customer led to high level of dissatisfaction in clients which further resulted in decrease in sales. A poor review by customers put a negative impact on the reputation of an organisation. Failure to provide the compensation for damages suffered by guest, has lead to legal obligation on the Airbnb. This factor has negative effect on the relationship between customers and a company. There has been a continuous decline in growth as well as market share of an organisation. Due to the significant impact of problems on business, an organisation had faced difficulty in catering the need of workers which has given rise to other major issues to other issues which has adverse effect on business performance as well as operations within an enterprise. Some client of Airbnb Company has complained about an enterprise that, business entity provides false or untrue information about destination. A firm also does not take liability or responsibility for making the refund on cancellation of booking (Matthews and Marzec, 2017). Unclear customer’s policies often lead to misunderstanding which further result into conflicts. another problem which has been faced by the Airbnb is related to the safety of guests. Airbnb disclaims responsibility for accidents that happen at properties booked through its platform. Safety policies of company is meagre in the extreme, business entity provides liability insurance for landlords and homeowners. (Zhang and et. al., 2017)
Lack of financial resources restricted the firm from bringing the improvement in business practices and hiring the external parties for ensuring the safety of guests. Business entity has no quality control over the types of guests. An organisation also has ineffective inspection procedures, due to which major accidents take place at workplace. Airbnb organisation was engaged in illegal operations, due to which it faced legal issues. Business entity failed to provide affordable housing for domestic residents.
Airbnb introduced as well as implemented innovative ideas which were very effective and easily acceptable by the customers. The thought was to utilise web as well as application-based technology to enter into international market and to connect directly with the customers. Nevertheless, the idea got failed due to greedy commercial landlords as well as agents. This incidence had a significant impact on the customer loyalty or trust between customers and clients (Iqbal and Sharma,2012)
Lack of sufficient resources led to compromise in quality of products or services offered by business entity to its customers. This factor had great as well as direct impact on the position of company and also on brand reputation of firm. High level of competition in the industry has diverted the attention of company from its goals. This is a reason an organisation has to face difficulty in maintaining the quality of goods or services. In order to gain the high profits, new or existing competitors could importantly cut down rates or provide greater conveniences, services or amenities, expand, improve or introduce new facilities in the markets. Lack of productive chefs and managers is another major issue which may create barriers in quality management process. Security challenge is another major issue faced by Airbnb. There are several types of challenges related to security these are identity theft, cyber crime issues, risk of food poisoning etc. In context of Airbnb, business entity has to face several problems or legal issues due to fraud conducted by agents and landlords (Zeng, Zhang and Zhao, 2017)
Capabilities And Competency Possessed By Airbnb To Improve Quality
Even after having various issues in website management the organization have adequate amount of capability that can help in improving its overall quality of the services that is provided by Airbnb to its customers (Fitzsimmons, Fitzsimmons and Bordoloi, 2014). The organization has been able to double its overall revenue and is planning to indulge in initial public offering in the next year. It has been able manage its standing as world’s leading community driven hospitality company.
The capabilities of any organization are decided based on the notion that core competencies and internal resources, being used by it to display its distinctive capabilities. It helps in providing strategic platform in such a manner that the firm’s long-term capabilities can be enhanced. The capabilities in overall company’s profile, helps in examining its strength and weakness based upon key elements of marketing, financial, managerial and technical. It helps in identifying that on what aspect it is important for the organization to focus so as to gain competitive advantage over other companies (Smith and Gerald, 1993).
Experience is a kind of activity that can help Airbnb to developing unique perspective and passion in the customers. It must be ensured by the organization that it is able to meet the expectations of community and all the standards related to guest books are effectively followed by it. It helps the organization in earning great reviews about its services. Consistent low rating and other indications of declining growth can be analysed through the feedbacks. Hence, in such cases, Airbnb and bring adequate changes it its website can help in mitigating the number of scams that are faced by the organization. Implementation of firewall and having strict coding of the websi9te again with virus protection and spam management can come for rescue in case of Airbnb.
It is important that all the experience related to Airbnb is able to meet the quality standards in the following format:
Hospitality: Hosting friends and welcoming the strangers and guests, can help in building the connection between them. Hence, it is important to provide effective set of quality services to the clients that can help in building their effective capabilities of handling customers in a well-defined manner (Mok, Sparks and Kadampully, 2013).
Expertise: Airbnb must possess effective set of skills or knowledge related to a particular field related to the experience. Hospitality is quite a competitive industry and holding appropriate set of skills to manage the customers can help in building trust and loyalty in the customers. Hence, in such cases, service provider must ensure that best set of possible services are provided to the service user with the aim that the present customers can be retained and new consumers can be attracted to the organization. It will help in enhancing overall base of the customers that is available to Airbnb.
Insider Access: Airbnb must ensure that it has some exclusive ability to perform certain functions which may not be possessed by any other hospitality industry. It can be in the form of introducing lesser known places to the customer, meeting a private community, having off track menu which is not usual and can help tourist in having a discovery, going after hours, having the view of everything backstage, etc (Boniface, 2013).
Outsider Access: Airbnb mostly access through the website and hence maximum bookings are done through the website. Hence, it become important that the best version of the company is ultimately displayed to the customers. It also helps in ensuring that the website has been designed effectively.
The current base of capabilities possessed by Airbnb can help in expanding its quality aspect in such a manner that the best possible set of services is ultimately provided to the customers. Providing quality services helps in preserving customers for longer duration and they are able top stay loyal with the company with longer period. Increased quality of services also helps in ensuring that it is able to increase its competitiveness in the market. In the end, it can be stated that Airbnb have the right capabilities and competency to improve the overall quality of services that is provided by it to the customers.
Impact Of Kaizen And Benchmarking In Delivering Consistent And Effective Quality Management
Delivering consistent and effective quality management plays an important role in ensuring that best set of services are provided to the customers in such a manner that maximum number of consumers can be attracted towards it. The impact of Airbnb can be ascertained in the following manner based upon two important aspects:
Kaizen is also known as continuous improvement. It is a long term approach that helps inworking in a systematic manner in such a way that incremental benefits can be achieved processing changes in the organization towards the route of overall improvement in efficiency and quality. Kaizen is a Japanese word, which depicts, “change for better”. Continuous improvement in the functions of the business can help in ensuring better set of activities ultimately improving overall quality and efficiency in the business functions (Ford, Sturman and Heaton, 2012). Since, it can be applied on any kind of work; its implementation can help Airbnb to opt for continuous improvements. Moreover, it is ensured by the management that the internal objective of each and every worker is same in a manner that it can be aligned to ultimate goals of the business as well.
One such aspect related to Kaizen is lean manufacturing which aims at elimination of waste. Applying the same of Airbnb can help in ensuring that all the available resources are optimally used. Further, bringing improvements in each and every work stand is the other motive that is directly linked to kaizen. It helps in ensuring that each and every activity performed by the team have the calibre to meet the requirements of the consumers. It plats a substantial role in improving the overall business aspects ultimately having positive impact on overall business operations, revenue and profitability (Basu, 2014).
Airbnb must also initiate steps that can help in resolving out the issue which is encountering abnormality. In such cases, suggestions from the side of customers, supervisors and other workers can come to rescue and implementation of the same can be initiated for overall improvement in the business activities. Training and development programs can help in ensuring that the work performed by the team is effective enough that it can be able to promote market share of the organization (Tajeddini and Trueman, 2012). A substantial impact on sustained aspects of the business can also be noticed by the management of Airbnb.
Benchmarking is related to comparing the business processes and performance metrics o one company with that of industry’s best practices. The main and common dimensions that are generally adopted by organizations for benchmarking practices are, quality, time and cost. In such case, management tends to decide the best organization in the industry that is indulged in this function and compare of suitable aspects so that the same can be adopted by former business. It can help in bringing improvements in overall business operations of the company (Trustpilot, 2017).
Benchmarking is generally used to measure the performance with the help of specific indicators, which can be in the form of productivity per unit of measure, cost per unit of measure, etc. It can help in ensuring that the performance metric is used in such a manner that it can be compared from one duration to the other. Benchmarking is continuous process whose main aim is to improve overall practices of the customers (Shi and Liao, 2013). The process may differ from one organization to the other and hence cannot be universally adopted. The process tends to change as per the on-going practices of company that may vary from one another to a great extent. There are 12 approaches of benchmarking which can be applied to the Airbnb. These are listed below:
- Selection of support
- Definition of processes
- Identification of potential partners
- Identification of data sources
- Collection of data and selection potential partners
- Determination of gap
- Establishment of process differences (Zaleski, 2017)
- Targeting future performance
- Adjusting goals
- Reviewing and recalibrating
These processes can help in ensuring that what are the flaws and merits, an organization can have based upon the benchmarking aspect. Information conversation with the suppliers, customers and employees can help in understanding the issue and create benchmarking criteria that is related to one of the other aspects. Airbnb must ensure that appropriate benchmarking criteria are used by the organization in such a manner that best possible practices can be adopted by it. Further, in order to ensure that company is able to have an effective website for the customers, then it becomes necessary to take steps and create benchmarking aspect that can help in rendering services in the best possible manner to the customers (Ellson, 2017). Benchmarking can be done for Airbnb in the form of process, financial, investors perspective, performance, functions and operations.
It has been concluded from the report, that managing quality in service sector is very important to provide high level of satisfaction to customers. The study had successfully highlighted the several issues faced by Airbnb enterprise related to business operation. It also examined the right capabilities and competences required by an organisation to improve the quality of services.
There are several techniques that have been suggested to a business entity which can be utilised for enhancing business practices. It has been suggested to an organisation thatmanagement team is required to set some standards for measuring the quality of services.
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