BTM5TCI Tourism Contemporary Issues
Overview
This assignment involves preparing a 4,000-word case study report on your
understanding of Tourism Contemporary Issues (TCI). You are required to use theories,
concepts, and contemporary practices to support your argument. Use examples from the
case study (Airbnb) and further research to demonstrate a clear understanding of
contemporary tourism, including demographic changes and trends in consumer demand,
expectations and sustainability issues, the development of contemporary tourism
products, and issues around governance in tourism.
The report must be submitted in Microsoft WORD format. You must include appropriate
in-text citations and references according to the CCCU Harvard Referencing Style
Task to be completed
Case Study: Airbnb – Navigating Contemporary Issues
The case study focuses on analysing Airbnb’s role within the contemporary tourism
industry. By evaluating Airbnb’s business model, the report aims to explore the challenges
and opportunities it faces, including regulatory pressures, community impacts, and
sustainability issues. The goal is to apply relevant tourism management theories to
provide a comprehensive understanding of how Airbnb operates and adapts within the
ever-changing tourism landscape.
Airbnb, founded in 2008, is a peer-to-peer platform that allows property owners to rent
their homes, apartments, or rooms to travellers, thereby transforming how people
experience accommodations (Guttentag, 2015). Operating in over 220 countries, Airbnb
has grown to be a significant player in the tourism sector, offering unique and
personalized experiences to travellers worldwide (Dolnicar, 2019). Its business model
leverages the sharing economy, allowing individuals to monetize underutilized
properties, thereby democratizing access to tourism revenue (Martin, 2016).
However, Airbnb faces several contemporary issues that affect its operation and the
broader tourism ecosystem. One key issue is regulatory challenges. Cities worldwide,
including Amsterdam, Barcelona, and New York, have implemented stringent regulations
to control Airbnb’s operations (Nieuwland & van Melik, 2020). These restrictions aim to
address concerns such as housing shortages, rising rental prices, and loss of community
character. Gentrification is another pressing issue. As more tourists occupy residential
neighbourhoods, local communities often face displacement due to rising costs
(Wachsmuth & Weisler, 2018). Furthermore, competitive pressures from traditional
hotels and emerging rental platforms like Vrbo have pushed Airbnb to continuously adapt
its offerings. These challenges directly influence Airbnb’s ability to operate sustainably
while remaining profitable.
Airbnb’s innovative business model also intersects with environmental concerns,
particularly in areas of waste management, energy consumption, and the preservation of
local cultures (Gössling & Hall, 2019). The sheer volume of tourists booking through
Airbnb raises questions about the sustainability of urban neighbourhoods and the
unintended consequences of overtourism. Consequently, Airbnb must balance expansion
and community relations, while adhering to responsible tourism practices.
The demand for Airbnb services is driven by several evolving consumer trends. The rise
of the sharing economy and a desire for more authentic travel experiences have
significantly contributed to Airbnb’s popularity (Belk, 2014). Tourists today are
increasingly seeking unique stays that offer more immersive experiences, such as staying
in local neighbourhoods rather than commercial tourist districts. This shift reflects the
consumer preference for culturally rich and personalized travel experiences (Bakker &
Twining-Ward, 2018).
Airbnb also appeals to digital nomads and remote workers, a demographic that has grown
rapidly in the wake of the COVID-19 pandemic (Richards, 2020). These individuals
prioritize flexibility and are drawn to Airbnb’s offerings of extended stays, affordable
accommodations, and home-like amenities such as kitchen facilities and workspaces.
As these demand characteristics evolve, Airbnb has adapted its supply strategies
accordingly. The platform has expanded its offerings to include Airbnb Experiences,
which allows hosts to offer local tours and activities, thus catering to the traveller’s desire
for more in-depth cultural engagements (Cheng, 2016). Moreover, Airbnb has focused
on recruiting new hosts, particularly in underrepresented areas, to diversify its supply and
capture untapped markets.
Airbnb’s operations have both positive and negative effects on host communities.
Economically, Airbnb provides a significant source of income for property owners,
enabling residents to benefit directly from the tourism economy (Frenken & Schor, 2017).
Additionally, local businesses, such as cafes, restaurants, and attractions, also benefit
from increased spending by Airbnb guests. These economic gains are particularly evident
in less-touristed areas, where traditional hotel infrastructure may be limited.
On the social front, however, Airbnb’s presence can disrupt communities. In urban areas,
the rapid growth of Airbnb listings has been linked to rising rental prices and reduced
housing availability for residents (Lee, 2016). This phenomenon, often referred to as
gentrification, has led to residents being displaced and neighbourhoods losing their
cultural identity (Wachsmuth & Weisler, 2018). In some cases, residents have reported a
reduction in quality of life due to increased noise levels, overcrowding, and a transient
population of tourists who may not engage with local norms or values.
Environmentally, Airbnb faces scrutiny regarding its impact on urban infrastructure and
resources. Unlike hotels, which are often required to adhere to environmental regulations,
individual Airbnb hosts may lack the incentives or knowledge to implement sustainable
Level 5 Tourism Contemporary Issues Assignment Guide 2024/2025
practices (Gössling & Hall, 2019). This can lead to increased waste generation, excessive
water consumption, and carbon emissions from energy use in properties rented through
the platform.
To address the challenges it faces, Airbnb has implemented various innovative strategies.
One such initiative is the introduction of Airbnb Plus, a premium service that includes
verified homes that meet higher quality standards, aimed at improving customer
experience (Karlsson & Dolnicar, 2016). This initiative helps address consumer concerns
regarding consistency and quality, which have historically been drawbacks of the peerto-peer accommodation model.
Airbnb also uses data analytics to optimize its service offerings. By analysing booking
data, customer reviews, and host performance, Airbnb continually adapts its platform to
meet customer needs and improve service quality (Guttentag, 2019). For example, during
the COVID-19 pandemic, Airbnb shifted its focus to longer-term stays, recognizing the
growing number of remote workers looking for flexible living arrangements (Richards,
2020). This shift helped mitigate losses during a period when short-term travel was
heavily restricted.
Moreover, Airbnb has sought to address regulatory challenges by working with city
governments to develop responsible hosting frameworks. For instance, Airbnb has
implemented caps on the number of nights properties can be rented in certain cities and
developed systems to collect tourist taxes on behalf of hosts (Nieuwland & van Melik,
2020). These measures are aimed at building a more cooperative relationship with local
authorities and reducing the negative externalities of short-term rentals.
Looking forward, Airbnb must continue to adapt to evolving tourism trends and
regulatory environments. To ensure long-term sustainability and community relations,
Airbnb should consider the following recommendations:
Strengthening Community Relations: Airbnb should continue collaborating with city
governments and community groups to mitigate negative impacts on housing availability.
Implementing community funds, where a portion of Airbnb revenue is reinvested into
local projects, could help improve public sentiment and balance tourism benefits
(Wachsmuth & Weisler, 2018).
Promoting Sustainable Practices: Airbnb should expand its efforts to promote sustainable
hosting practices. This could include incentives for hosts who adopt environmentally
friendly measures, such as energy-efficient appliances, waste reduction initiatives, and
water-saving technologies (Gössling & Hall, 2019). Offering sustainability certifications
could also encourage more hosts to participate in green initiatives.
Expanding Beyond Urban Centres: To alleviate the pressures of overtourism in popular
cities, Airbnb should focus on expanding its presence in rural and less-touristed areas.
This shift can help distribute the economic benefits of tourism more evenly, while also
providing travellers with new and unique experiences (Bakker & Twining-Ward, 2018).
Enhancing Quality Control: Introducing more comprehensive host training programs and
maintaining strict quality standards can enhance guest experiences (Karlsson & Dolnicar,
2016). By educating hosts on hospitality and sustainability best practices, Airbnb can
ensure that its services consistently meet customer expectations.
In conclusion, Airbnb has revolutionized the tourism and hospitality industry by capitalizing on the sharing economy and responding to consumer demands for authentic, personalised experiences. However, its growth has not been without challenges. By addressing regulatory concerns, minimising negative community impacts, and promoting sustainable practices, Airbnb can continue to play a leading role in the future of tourism while contributing positively to the communities in which it operates.
WHAT YOU ARE BEING ASKED TO DO?
You are required to study the case and then write a report of 4,000 words (this can be
over or under by 10%, i.e., 400 words) in relation to your analysis of the case
organisation:
- Identify and evaluate contemporary issues affecting Airbnb, with clear examples
and theoretical backing. - Understand and analyse customer trends and their influence on Airbnb’s services
and community impacts. - Evaluate the impacts (economic, social, environmental) of Airbnb on host
communities and suggest sustainable tourism practices. - Analyse and synthesize new ideas to recommend future sustainable strategies for
Airbnb as it navigates contemporary challenges.
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