Brandy Zamber, Lisa Harwardt, QuynhAnh Pham, Patricia Torruella Professor Levas BUS 496 4 November 2019 Airbnb Case 1. How would you illustrate and compare the business models for Airbnb, large hotel chains such as Marriot and Hilton, and bed & breakfast operators? Use the example chart in the textbook for business models as a guide (Concepts & Connections 1.1). The business model for Airbnb uses a sharing economy meaning people with spare capacity can offer their services and resources using a technological platform. Since the company does not use its own brick-and-mortar establishments, it does not incur traditional building or operating costs like hotels. Airbnb has similar costs to that of a technology company, which have decreased in recent history due to the advancement of technology. Additionally, the company’s revenue comes from a percentage of what the host receives for the room. As a result, Airbnb’s business model is more similar to that of a business operating in the online marketplace. Large hotel chains such as Marriot and Hilton use a traditional lodging accommodation business model. Their operating costs come from several different areas including employee wages, depreciation, building utilities, and marketing expenses. While brick-and-mortar hotels and accomodations incur greater overhead costs, they receive one hundred percent of the generated revenue. Furthermore, large hotel chains typically attract customers looking for additional amenities like spas and restaurants, while Airbnb users do not need necessarily desire these luxuries.