1. Airbnb and Ebay Are Similar in That Both Companies Run Online Marketplaces That ‘Match’ Buyers with Sellers. How Should Airbnb’s Reputation System Differ from That of Ebay?

751 Words Feb 3rd, 2013 4 Pages
1. Airbnb and eBay are similar in that both companies run online marketplaces that ‘match’ buyers with sellers. How should Airbnb’s reputation system differ from that of eBay?
Although both Airbnb and eBay provide online marketplaces to match buyers and sellers, Airbnb focuses on one specific area: online marketplace for accommodations whereas eBay runs online marketplaces in a much broader scope, from Fashion items electronics all the way to collectibles, in other words, the transactions happening on eBay everyday are related to almost every corner of our daily life.
More specifically, Airbnb's customer base can be narrowed down to hosts (sellers) and guests (buyers) respectively while eBay serves everyone who performs online
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This will increase the operational cost for Airbnb but will help the guests gain much greater confidence on the prospective accommodations. On the other hand, the hosts are also eager to make sure the guests will behave appropriately while they stay in the hosts' properties. In addition to the past records of stays that the guests have made in Airbnb, Airbnb can also work with partners (such as travel agencies, hotel chains, credit history investigation agencies) to get more information about the guests. Airbnb can also hold certain amount of money during the stay of the guest and release the money if the host confirms no damage happened or such. In fact, keeping the house/apartment in good condition should be one of the standard feedback items that the host can provide to the guest.
2. To make the reputation system works better, the feedback on both hosts and guests should be standardized (the feedback providers are certainly welcome to provide additional comments though) rather than free-formed so that more objective evaluation can be made.
3. An award and penalty process can be integrated into the reputation system so "good" hosts and guests will be awarded (e.g. paying less Airbnb fees or cash rewards) and "bad" ones will be penalized (e.g. paying more Airbnb fees all the way to terminate accounts). This additional incentive can help motivate both hosts and guests do better whenever they…

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