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Team 9 -Advanced Finance 57A Nguyễn Tài Anh –A5 Nguyễn Thuận Hưng –A19 Đoàn Vĩnh Khải –A21 Nguyễn Xuân Sơn –A43 Phạm Sơn Tùng –A50 -Advanced Finance 57B Mai Phương Anh –B1 Đoàn Hạnh Chi –B6 Huỳnh Phương Linh –B23 Đinh Khánh Ngọc –B35 Bùi Anh Thư –B43
Airbnb Case Study Executive summary The newly created sharing economy has revolutionized the way individuals utilize resources. Since its founding in 2008, Airbnb, a web-based service that connects travelers and hosts, has given individuals the opportunity to rent out their homes on a short- term basis. Airbnb’s vision is to be the world leader of Internet-based accommodation industry. Its core values are enjoyment, hospitality, competitiveness, sharing and safety. Despite its rapidly growth and wide appeal, Airbnb’s unique business model has raised challenging questions on how to regulate the home-sharing industry. This paper focuses on important issues of Airbnb –a new business model for the sharing economy- and the problems Airbnb have to deal with and how to solve them. In this case, we begin by introducing Airbnb background, its business model, its major players and compare the value proposition for Airbnb, large hotels. Next we compare and contrast the general strengths and weakness of large, hotel chains such as Marriot and Hilton, bed & breakfasts, and Airbnb. In this part, we focus of the problems Airbnb have to face with such as criticizing from local and global business, discrimination.etc Then we analysis the change in customer and how Airbnb’s customer value proposition meet this change. We also show the key factor of Airbnb’s success in the accommodation market. Finally, we move to the recommendations for Airbnb to improve its competitiveness in accommodation market while mitigating current and future risks by establishing some new regulations for users and adding features in web-platform.
Analysis 1.Company backgroundAirbnb was founded in August 2008, headquartered in San Francisco, CA, and is privately owned by Brian Chesky, Joe Gebbia, Nathan Blecharczyk, and Laurence Tosi. It is a website for people to list, find, and rent lodging. It has over 1,500,000 listings in 34,000 cities and 190 countries. Since then it has served over 30 million guests. Such platforms disrupt traditional hospitality industries by creating new sources of supply. Airbnb’s business model includes minimal regulatory controls in most locations where hosts and guests both have to build trust to maximize the likelihood of a successful booking. Airbnb has changed the traditional market for tourism by providing an online marketplace that permits large-scale rental of spaces from one ordinary person to another. With this peer-to-peer interaction, the Airbnb website secures its customers identity by ensuring that all members provide photo identification, authentic phone numbers, and links to Facebook and LinkedIn accounts. With its easy access website, Airbnb is changing the travel economy around the world.