Airbnb logo controlling a house

Airbnb Under Scrutiny: Are Sharing Economy Platforms Fair to Hosts?

"A deep dive into how Airbnb's governance and control systems impact hosts, revealing the balance between platform power and user autonomy in the sharing economy."


The sharing economy, once hailed as a revolutionary way to connect people and resources, is now under increased scrutiny. Platforms like Airbnb, which allow individuals to rent out their homes or spare rooms, have disrupted traditional industries and created new opportunities. However, the rise of these platforms has also raised questions about fairness, control, and the balance of power between platform owners and users.

While Airbnb promotes itself as a community-driven marketplace, a closer examination reveals a complex web of governance and control mechanisms. These systems, designed to ensure quality and consistency, also exert significant influence over hosts' autonomy and earning potential. Understanding these dynamics is crucial for anyone participating in the sharing economy, whether as a host or a guest.

This article delves into the heart of Airbnb's governance model, exploring how the platform manages its hosts, the controls it implements, and the implications for the sharing economy as a whole. By analyzing existing research and real-world examples, we'll uncover whether Airbnb offers a fair deal for hosts or if it operates as a top-down power structure that prioritizes platform profits over user well-being.

The Control Mechanisms: How Airbnb Manages Its Hosts

Airbnb logo controlling a house

Airbnb employs a multi-layered approach to managing its hosts, combining bureaucratic, market-based, and social elements. The platform uses formal bureaucratic controls, such as identity verification, account reviews, and the Superhost program, to ensure minimum standards and maintain a level of trust. Market-based controls, like pricing suggestions and visibility in search results, incentivize hosts to remain competitive.

The power dynamic isn't solely one-sided. Airbnb hosts are granted certain decision rights, including listing availability, pricing, booking preferences, and house rules. This provides hosts with a degree of autonomy in managing their listings and catering to their preferences.
  • Formal Bureaucratic Controls: Include identity verification, account review and "superhost" status to ensure minimum standards and maintain a level of trust.
  • Market-Based Controls: Price suggestions and visibility in search results incentivize hosts to remain competitive.
  • Host's Decision Rights: Hosts decide listing availability, pricing, booking preferences, and house rules.
The reality, however, reveals that Airbnb retains significant decision-making power. Airbnb controls access to the platform, sets service fees, and can deactivate host accounts. Even the 'Superhost' status, while seemingly rewarding, imposes rigorous performance standards that require continuous effort. There are also increasing reports of Airbnb favouring guests over hosts in dispute resolution, potentially leaving hosts vulnerable to unfair claims.

Is Airbnb Fair? Balancing Platform Power and Host Autonomy

The question remains: is Airbnb fair to its hosts? While the platform provides opportunities for income generation and entrepreneurship, the power imbalance is undeniable. Airbnb's top-down control mechanisms, designed to ensure consistency and profitability, can impinge on host autonomy and earning potential. As the sharing economy evolves, it’s crucial to examine platform governance models and advocate for fairer conditions that empower hosts and foster a more equitable distribution of benefits.

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