CASE STUDYGROUP 8P 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.•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.•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.WWW.LBSIM.AC.IN
•Unlike traditional hotels industry Airbnb operates on a peer-to-peer room sharing business model.•Hosts could offer spare rooms or entire house to guests. With the help of digitally monitored marketplace.•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 IndustryAIRBNBCASESTUDY•A change was noticed in the interactions of the consumers with the businesses.•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.