CASE STUDY
GROUP 8
P R E S E N T E D BY -
P RA S H AN T B A I S OYA ( 8 2 )
S U S M I TA S A R KA R ( 9 0 )
D I K S H A N T S A X E N A ( 9 3 )
S A K S H I G OYA L ( 1 0 2 )
A B H I S H E K B H A D U L A ( 1 1 5 )
G A U RAV ( 1 1 7 )
P RA B H M E H A R S I N G H ( 1 1 9 )
About Airbnb
•
Airbnb was founded in 2008 by co-founders Brian Chesky and Joe
Gebbia.
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They started by renting out an air mattress in their living room,
effectively turning their apartment into a bed and breakfast.
•
They capitalized this idea and registered their website and started
Airbnb.
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Where anybody could register on the site and offer a spare room or
an entire house to potential guests.
•
Airbnb earns by getting a percentage as commission from the
owners who rent out their premises.
•
As of 2018, Airbnb had expanded to over 190 countries with more
than 4 million listed properties, and had an estimated business
valuation of 31 billion dollars.
W
W
W
.
L
B
S
I
M
.
A
C
.
I
N
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Unlike traditional hotels industry Airbnb operates on a peer-to-peer
room sharing business model.
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Hosts could offer spare rooms or entire house to guests. With the
help of digitally monitored marketplace.
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The emerging concept of shared economy became their successful
business model.
•
Where traditional hotel industry players had to own an entire
premise to offer the services, Airbnb could do so without investing
in any real estate.
•
Rather than a lodging establishment Airbnb’s business model is
based
on
the
revenue-cost-margin
structure
of
an
online
marketplace.
•
Airbnb by earning 11% fee per room became a profit making
establishment in 2016.i.e nearly after 8 years of starting its
operations, credit goes to its business model that relied on
technology resulting in a very low operating cost.
COMPARISON BETWEEN Airbnb MODEL
AND TRADITIONAL HOTELS INDUSTRY
Changes in The Hospitality Industry
A
I
R
B
N
B
C
A
S
E
S
T
U
D
Y
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A change was noticed in the interactions of the consumers with the
businesses.
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The shift towards “experiencing-and not owning” assets was on the
rise
•
.The consumers had started de-emphasizing ownership and focusing
more on renting or sharing.
•
The consumers desired a more closer
relationship with the host which led to
the rise of such services.
•
Consumers desired for authenticity
and the fact that the place that they
are staying in should tell a story, be of
some context and reflect the feel of
the surrounding community.
•
People opt for Airbnb are generally seeking an intimate, non-manufactured experience. They want to be
embedded in the fabric of a community, where they can feel the uniqueness of place.
