Case_2_Airbnb - Case 2 Airbnb Inc in 2017 1 How would you illustrate and compare the business models for Airbnb large hotels chains such as

Case_2_Airbnb - Case 2 Airbnb Inc in 2017 1 How would...

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Case 2: Airbnb, Inc. in 20171. 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).AirbnbLarge Hotels Bed & breakfastValue propositionThe company doesn’t own any rooms themselves but instead offers a technological platform for listing and renting locals homeowner who have spare rooms toearn extra income by enable owners signed up through the platform and offer the service or resources towards the travelersTravelers can book room through a local host with a lower price, and Airbnb received a percentage of what the host received forthe roomProvide a rating andreview system for hosts and guestsWell-known brand nameInvest heavily in additional amenities such as pools, gyms, spas, etc. with a significant operating cost to competed for all segments of travelersAccommodating guest in singleor multiple roomsOffering spectacular viewsOn-site parkingVery small, usually where owner-operators offered a couple ofrooms within theirown home to accommodate guestCozy, home-like ambience associate with more rural, slow pace, more personalized, quieter atmosphereOffering bed & breakfast with great allure and ambience for the guests’ experience, possibly with historical backgroundProfit FormulaLow operating costscompare to tradion brick-and-mortar because the company doesn’t own propertiesLocal host doesn’t subject to regulationand taxation like tradition brick-and-Can be expensive and costing towards customers depending on the location and the seasonExpanding the business by purchasing Price varies upon a demanding for rooms
mortarpreexisting physical locations, or through mergersand acquisitions2. What are the general strengths and weaknesses of large, hotels chains such as Marriott and Hilton, bed & breakfasts, and Airbnb? Explain how you would compare those businesses.Large Hotel chainsBed & BreakfastAirbnbStrengthsStrong property portfolioAttractive amenities like pools, gyms, spas, fine diningSpectacular viewsOn-site free parkingQuicker access to highway Offered a morepersonalized, quieter atmosphereEstablished in rural areas since big hotel investment may have beencost prohibitive Hosts can offerinsight into local lifeMedium operating costTax advantage when running a self-businessClear business model base on service fee by connecting hosts and travelers through the process of rentingwith their technological

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