Detailed PESTEL Analysis of Airbnb

The Airbnb home-sharing model is a suitable choice for hosts, guests and the planet. The PESTLE analysis of Airbnb by EdrawMax examines the political, economic, social, technological, legal and environmental factors of the hotel alternative.

1. Lead-in

PESTEL is a tool that allows you to find different factors that impact a firm and its functioning. These factors may provide them with the opportunity to grow or hinder their expansion. These are some external factors that a brand needs to consider while strategizing its business. The brand Airbnb has become a household name with its global presence.

Their unique business model has helped them to see a steep success rate. Airbnb PESTEL analysis can show how the external factors contributed to the present status of the business. The detailed Airbnb PESTEL analysis can show how the external factors have made the field of their growth. In this article, we will help you understand Airbnb PESTEL analysis and how you can use EdrawMax Online to create professional-looking analysis diagrams.

2. About Airbnb

2.1 Introduction of Airbnb

In recent years, Airbnb has brought a revolution in the lodging service all over the world. They are a global presence with a loyal customer base. The company is headquartered in San Francisco and has multiple subsidiaries like Trooly Inc., Lapka Inc, etcetera. Airbnb connects a set of hosts and tenants all around the world through its online platform. To do a thorough PESTEL analysis, you must know the firm's basic details.

Though the brand offers to lodge to the tourists, they do not own any property. They have a sharing business model which allows a tenant to stay at a shared home at a lower rate than hotels. They help the economy to grow by offering income opportunities and giving back to society with their philanthropic works.

2.2 Overview of Nintendo

Company Name: Airbnb, Inc.
CEO: Brain Chesky
Company Type: Lodging and Hospitality
Year Founded: August 2008
Employees: 6132 (in 2021)
Annual Revenue: $4.805B (FY2019)
Founder: Brian Chesky, Joe Gebbia, Nathan Blecharczyk
Area Served: Worldwide
Headquarters: San Francisco, California, US
Operating Income: $0.429B (in 2021)

3. Airbnb PESTEL Analysis

Airbnb operates worldwide and has a business model different from traditional lodging companies. They provide temporary accommodation to tourists and have an exciting growth rate. Varied situations influenced the company, which have both positive and negative effects. Multiple factors impacted the business of the company.

Political Factors:

Airbnb's business model is very different from the companies that traditionally work as rentals. Due to this, they face issues that impact their business. As a company that serves worldwide, it must comply with the political system and governmental laws for a seamless business procedure:

  • The housing laws and regulations for rental services vary from country to country. Since Airbnb is dependent on people who put their houses or living spaces for rent, the owner's failure to abide by the laws will lead to Airbnb facing harmful consequences.
  • The hotel and tourism industries sometimes suffer in countries where political conflicts are at a high rate. Presently the business of Airbnb has gone down in the territories like Ukraine, Crimea, and Palestine, where tourist visit is scarce, and the political disturbance is at its peak.
  • In many countries, residential complex renting governmental policies influence the business of Airbnb. The government does not earn much from the business concept Airbnb follows. Some areas have a law where the owner's physical presence is significant while putting the house on rent. In some regions, the owners should pay the same tax as the hotels. The brand also needs to follow the rules set by the local government regarding short-term accommodations.

Economic Factors:

Airbnb is a low-cost alternative to hotels. There are a massive number of middle-income families that travel from one country to another. They choose Airbnb due to the lower rent than hotels. It is why Airbnb has established a successful business.

  • Due to the pandemic, there are partial lockdowns in countries. Many states are limiting the visit of tourists to decrease the spread of Covid. As the whole tourism business got impacted by the pandemic, the Airbnb business also experienced some lag in growth. Additionally, the global economy is under contraction. Thus, influencing Airbnb's functioning.
  • Airbnb has created employment opportunities for the lower and middle-income groups. They can earn some extra money by renting out their houses and can smoothly pay their loans. The company has also recruited over 6000 employees for different posts.
  • The company has created an alternative system while supplying the demand of the people at a lower rate than the conventional system. It has a positive impact on the economy. The people who have a property can put it on rent, while people from the middle-income group can afford them at a cheap rate. They are not only creating a balance in the economy but at the same time are helping people to earn.

Socio-cultural factors:

Airbnb, as a brand, is paying attention to its positive impact on societies with its worldwide presence. They provide their services in 191 countries and more than 34000 cities. As they have a large area of operation, they get impacted by the socio-cultural conditions of the communities.

  • Airbnb respects every region's culture and social values as a shared-economy business. They have Community rooms like “Help” and “Hosting” for the hosts and tenants to share their experiences or enlighten each other.
  • They allow the visitors to experience the local culture and connect with the communities. The users can book multiple experience-related activities or attend local events. They may also go for “social impact experiences.” The brand also gets the opportunity to distribute wealth among different communities and income groups.
  • From the Airbnb income statement, it is clear that they are not targeting earning high profit as their primary goal. They have concentrated on multiple expansion projects that can positively impact society.

Technological factors:

The business of Airbnb depends on technology for almost every step. The initial bookings and renting take place on the website or their application. They are trying to create communication between people from different communities, and technology is the only stable and viable option.

  • The firm requires an internet connection. Airbnb operations like booking, cancellation, and payment will get disrupted without a stable internet connection. They need a dominant and secured system to provide the best experience to the users, both the hosts and the tenants.
  • The reputation of businesses operating online is much dependent on the reviews. There are multiple social media platforms and question-answer platforms for the users to share their experiences. Negative reviews on such platforms can be harmful to the brand's image.
  • The company uses automation tools for the communication between buyers and sellers. When a host is unavailable, this automated system replies to the tenant. Airbnb can use AI-based services and automated systems to support the communication system and other processes like booking and cancellation.

Environmental factors:

Airbnb does not directly affect the environment as a lodging business. However, the company has a sustainable approach while increasing environmental awareness.

  • For Airbnb accommodations, the energy wastage is much lesser when compared to that of the hotels. The consumption of water and electricity in hotels is high. Thus, making Airbnb an environment-friendly business.
  • A recent Airbnb report has highlighted how the company's business concept of the shared home uses existing resources, which is a sustainable practice to keep traveling eco-friendly. They have also taken steps to reduce the usage of chemicals while hotels use a considerable quantity for cleaning.
  • The brand also pays attention to waste reduction and saving energy. They want their hosts to ensure the limited resources to decrease the wastage of natural resources.

Legal factors:

  • For any business, it is significant to adhere to the local laws to avoid court cases and financial compensation. Airbnb operates in multiple areas. Hence, they should take care of that area's rental and housing.
  • Airbnb has faced court proceedings in multiple regions like New York, New Orleans, and Barcelona for not complying with the local tourism laws. The company must keep a tab on the local laws regarding housing, accommodation, and tourism to avoid legal issues in the future.
  • The host should follow some rules on Airbnb's website to put a property for rent on Airbnb. Further proceedings occur when the host agrees to the terms and conditions. It keeps Airbnb away from the liability of any legal issues regarding renting.
  • The company must be careful with the taxation of the countries they serve. The structure varies from one place to another, and the renting regulations are also dissimilar. The company pays more than 15% of its income as tax for running its business.

4. How to Do a PESTEL Analysis in EdrawMax

  • Step - 1: Preparation
  • If you are using the offline version of EdrawMax, open the tool in your system. If you wish to access remote files, head to and log in using your registered email address. If this is your first time using the tool, you can register with your personal or professional email address. Go to 'Marketing' diagrams under Business diagram type and click on 'PEST Analysis.'

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 2: Template Selection
  • EdrawMax has thousands of free templates. Head to the Template section on the left and type 'PESTEL Analysis' to see all the pre-built PESTEL Analysis templates like Netflix PESTEL Analysis, Amazon PESTEL Analysis, IKEA PESTEL Analysis, and more. Check the template that resonates closely with your business model. Click on 'Use Immediately' to import the template's contents to the EdrawMax canvas. You can start customizing the PESTEL analysis diagram as per your requirements. If you want to draw the PESTEL analysis diagram from scratch, you can click '+.' It will open up the user-friendly canvas of EdrawMax that has several features that ease your efforts in making PESTEL analysis diagrams.

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 3: Add Textual Information
  • PESTEL Analysis diagram requires you to add Political, Economic, Sociological, Technological, Legal, and Environmental content so that the reader will understand what influences an organization. Use the PEST symbols from the left side and add the content to your PESTEL analysis diagram.

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 4: Customize
  • EdrawMax gives you ample options to customize your PESTEL Analysis diagram. From changing the background to adding content, you can customize the diagram in any way you desire. In addition to this, you can go ahead and change the background color, modify the text, add hyperlinks, add multiple pages, add images, and even add vector-enabled texts to your PESTEL analysis diagram.

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 5: Export & Share
  • Once satisfied with your PESTEL Analysis diagram, you can export it into multiple formats, including Microsoft, JPEG, PNG, Visio, HTML, and more. EdrawMax lets you share your PESTEL Analysis diagram on social media platforms, like Facebook, Twitter, Line, etc.

    How to Do a PESTEL Analysis in EdrawMax
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5. Key Takeaways

Airbnb is one of the top lodging services, and with a massive user base, they have proved the success of their sharing model. The Airbnb PESTEL analysis shows how the company is related to or gets impacted by multiple factors, including political, economic, Social, technological, Environmental, and legal. They have faced several issues during their growth and have made necessary strategies to cover those issues and project revenue of 3.5 billion per year by 2020 ( Their business model should positively impact the economy, society, and environment, reflecting their approach to maintaining sustainability.

EdrawMax is an all-in-one diagramming tool that offers many customization options, templates, and symbols. In the template community of EdrawMax, you will find thousands of templates you can import to your canvas board. Download EdrawMax as per your operating system or head to EdrawMax Online if you are looking to access the online features of this PESTEL Analysis diagram creator.


  1. Bush, T., 2022. PESTLE Analysis of Airbnb., [online]. PESTLE Analysis. Available at: (Accessed 17 August 2022).

  2. Farooq, U., 2022. Airbnb PESTLE Analysis - Spanish Lifestyle and Retail Brand., [online]. Marketing Tutor. Available at: (Accessed 17 August 2022).

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