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1.How would you illustrate and compare the business models for Airbnb, large hotel chainssuch as Marriott and Hilton, and bed & breakfast operators? Use the example chart in the textbook for business models as a guide (chapter 1, illustration capsule 1.2). AirbnbLarge hotel chainsBed & breakfastCustomer value propositionHosts can offer spare rooms or entire homes to guestsPeer reviewed in a digital marketplaceHosts able to circumvent or avoid regulations and taxationof traditional lodging establishmentsLarge facilities offering guests single or multiple roomsOn-site amenities such as fine dining and spa facilitiesEstablished brand and reputationSmall facilities offering a couple of roomsCozy home-like ambienceUsually owner-operators with more personalized and quieter atmosphereLocations in rural areas whereguests can connect with surrounding communityProfitFormulaAn estimated eleven percent is collected for each stayNo operating costs associated with owning propertiesAttract new guests withlow accommodation prices Attract large numbers of guests with several amenities Marketed as “vacation destinations”Charge a premium based on location and experienceSmall number of rooms can cause high demand and higherprices2.What are the general strengths and weaknesses of a) large, hotel chains such as Marriott and Hilton, b) bed & breakfasts, and c) Airbnb? Explain how you would compare and contrast those businesses. StrengthsWeaknessesAirbnbFunctions in “sharing economy” no need for physical locationsLow operating costsPeer-to-peer rating systemAffordable prices Hosts do not have to follow safety regulations of traditional lodging facilities