Airbnb Pestle and Swot Analysis 2019

By: Prudence Magezi

Through the years, Airbnb has established itself as one of the most profitable business in the sharing economy alongside Uber through its spearheading efforts in using technology to create an opportunity in the global hospitality business. Boosting over 5 million lodging options in over 81,000 cities and 91 countries globally, the company was estimated to be worth at least $38billion as of 2018. Airbnb has experienced success through the years; however, its future growth is threatened by growing legal issues. The biggest barrier to the company’s growth is restrictions imposed by legislative bodies, municipalities and communities on the use of lodgings for short term rental purposes. Using a PESTLE, the author will examine threats from economic, social, technological, legal and environmental issues while identifying the available growth opportunities in the market. We will then use SWOT analysis to examine its key strengths and weaknesses and how it can utilize strengths to mitigate inner weaknesses as well as threats.

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