Chp. 2_Case 2- Airbnb.docx - Dylan Barker GBA 490-005 Chapter 2 Chartering a Company\u2019s Direction Case Airbnb 1 Value Proposition Large

Chp. 2_Case 2- Airbnb.docx - Dylan Barker GBA 490-005...

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Dylan Barker1/16/2020GBA 490-005Chapter 2: Chartering a Company’s DirectionCase: Airbnb1.Value PropositionLarge Hotels(Marriot/Hilton)AirbnbBed & Breakfasts-Much larger facilities that are designed to accommodate guests in single or multiple rooms. -Offer amenities such as on-premise spa facilities and finedining. -Often offer spectacular views which sets them up to be a vacation destination.-Wages, property, utilities, and purchases such as food account for 59% of the industry’s total costs.- Tend to expand by purchasing preexisting locations, and through mergers or acquisitions. -Ability to avoid liabilities such as regulations and taxations that are imposed on traditional brick-and-mortar establishments. -Operate through a technological platform whereindividuals with spare space can offer their services. -Charges a small transaction fee upon the facilitation of a service between both users. -Receives a percentage of what the host receives for the room. -Has considerably less operating expenses when compared to traditional lodging establishments. -Company recorded $3 billionin revenues and $90 million in profits in 2017. -Much smaller and usually owner-operated where an individual will offer a couple rooms within their own home to accommodate for guests. -Provides the guest with an experience of a cozy, home-like ambience.
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