Assignment 2-Case Study.docx - Discussion Questions How would you illustrate and compare the business models for Airbnb large hotels chains such as

Assignment 2-Case Study.docx - Discussion Questions How...

This preview shows page 1 - 3 out of 8 pages.

Discussion Questions How would you illustrate and compare the business models for Airbnb, large hotels chains such as Marriott and Hilton, and bed & breakfast operators? Use the example chart in the textbook for business models as a guide (Concepts & Connections 1.1). Name Airbnb Large Hotels Bed & Breakfast Value Proposition Airbnb does not own any rooms itself but it offers a technological platform for listing and renting local homes. Individual hosts are able to offer their homes for a fee and guests can book rooms and apartments easier with a lower price. Provide rating and reviews for hosts and guests Accommodating guests in single or multiple rooms with additional amenities such as spa facilities and fine dining Properties offering spectacular views, bolstering a hotel as the vacation destination They are small, usually where owner-operators offered a couple of rooms within their own home to accommodate guest. Offering bed & breakfast with great allure and ambience for the guests’ experience Many are in rural areas, or with a historical background. Airbnb, large hotels like Marriot and Hilton, and bed and breakfast vary in size and destination. Airbnb connects hosts and travelers and facilitates the rental process without owning rooms, whereas large hotels and bed and breakfast are subject to city, state, and federal regulations. What are the general strengths and weaknesses of large, hotel chains such as Marriott and Hilton, bed & breakfasts, and Airbnb? Explain how you would compare and contrast those businesses. Strength Weakness Large hotels - Invested heavily in additional amenities as they competed for all - Significant operating cost: total cost as percentage of revenue in 2015 is 85%, while BNBs’ is 82%; wages accounted
segments in travellers: on-premise spa facilities and fine dining. - Also offer spectacular views, bolstering a hotel as the vacation destination. - Quicker access to the roadways and highways - Better choice for business (18%, compared to 12% of B&Bs) and other, including meeting (12%, compared to 8% of B&B) - Including both domestic and international travellers, while B&Bs only focus manly on the domestic market. for 26%, which is 3% higher than B&Bs; - Higher price - Tax and regulation - Consumer preference is shifting from focusing on ownership to sharing/renting to save their money: “Goldman Sachs study showed that once someone used Airbnb, their preference for traditional accommodation was greatly reduced” Bed and breakfasts - Offer a more personalized, quieter atmosphere - Rural location (as a competitive advantage since big hotel may have been cost prohibitive) – tourist attraction, offer great allure and ambience for the guests’ experiences - Medium operating cost - Can cut a huge amount acquiring or renting a property to be used for business - Tax advantage/incentive when running a self business - Limited number of rooms = limited amount of sales - Lack of services, breakfast options are often fixed or limited - Can lack of amenities and privacy - Primary domestic market Airbnb

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture