AirBnB Case Study
1/13/2020
1.
How would you illustrate and compare the business models for Airbnb, large hotel chains
such as Marriott and Hilton, and bed & breakfast operations? Hotel chains such as
Marriott and Hilton follow a business model in which they are able to target customers
from all different types of socioeconomic backgrounds. Their competitive advantages lie
within their established brand names, as well as the ability to provide extravagant
amenities at reasonable prices. These hotels consist of many different lodging options
which are available for nightly rental within a large resort loaded with leisure activities
and amenities. Many customers who are traveling for business or conferences typically
stay at larger hotels due to the large spaces they offer as opposed to spaces offered by bed
& breakfast operations. A bed & breakfast operation is a mix between a large hotel and a
private home. These businesses aim to offer “the best of both worlds,” providing the
comfort of a home with the convenience of a hotel. Bed & breakfast operations are much
smaller than hotel chains, typically offering anywhere between 2-10 rooms available for
lodging. Another perk of the bed & breakfast is that the majority of these businesses offer
a home cooked breakfast as opposed to the continental breakfasts of large hotel chains.
Airbnb is a company that has taken the accommodation market by storm, revolutionizing
the lodging industry through its shared economy model. Airbnb does not own the
properties that it rents to the traveler. Instead, Airbnb is an online platform that allows
homeowners to list their properties and travelers to rent from them. Airbnb makes its
