Airbnb logo controlling a house

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

Beau Callahan in Business & Economy August 2025 • 4 min read.

"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 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.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1016/j.bar.2018.12.001, Alternate LINK

Title: Governance And Control Of Sharing Economy Platforms: Hosting On Airbnb

Subject: Accounting

Journal: The British Accounting Review

Publisher: Elsevier BV

Authors: Giulia Leoni, Lee D. Parker

Published: 2019-11-01

Everything You Need To Know

How does Airbnb manage its hosts, and what control mechanisms are in place?

Airbnb manages hosts through a multi-layered approach that includes formal bureaucratic controls, market-based controls, and host decision rights. Formal bureaucratic controls involve identity verification, account reviews, and the Superhost program. Market-based controls use pricing suggestions and search result visibility. Hosts retain decision rights over listing availability, pricing, booking preferences, and house rules. However, Airbnb ultimately controls platform access, sets service fees, and can deactivate accounts.

What are the different types of controls Airbnb uses to manage its hosts, and what are examples of each?

Airbnb uses bureaucratic controls like identity verification, account reviews, and the Superhost program to ensure trust and quality. Market-based controls, such as price suggestions and search visibility, encourage competitiveness. Hosts have decision rights, including listing availability, pricing control, and house rules. However, Airbnb can deactivate accounts and dictate service fees.

How balanced is the power dynamic between Airbnb and its hosts, and what factors contribute to this balance or imbalance?

The balance of power on Airbnb is complex. While hosts can set prices, availability, and rules, Airbnb controls platform access, service fees, and account deactivation. The Superhost status requires continuous effort, and there are reports of Airbnb favoring guests in disputes. This imbalance raises questions about fairness for hosts.

How do Airbnb's control mechanisms impact host autonomy and earning potential, and what are the implications for the broader sharing economy?

While Airbnb offers income opportunities, its top-down control mechanisms can limit host autonomy and earning potential. The platform prioritizes consistency and profitability, which may conflict with host well-being. This raises broader questions about the sharing economy, platform governance models, and fairer conditions for hosts.

Given the power imbalance on platforms like Airbnb, what steps can be taken to ensure fairer conditions for hosts and a more equitable sharing economy?

Scrutiny of Airbnb's platform governance calls for a need to examine and advocate for fairer conditions. These conditions would empower hosts and promote a more equitable distribution of benefits. By ensuring fairness and equity, the sharing economy can fulfill its promise of connecting people and resources in a balanced and sustainable manner.