Dvd_Vygy-Order_3097635E.docx - Running Head AIR BnB 1 Airbnb is an online market platform offering online rental accommodation services around the world

Dvd_Vygy-Order_3097635E.docx - Running Head AIR BnB 1...

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Running Head: AIR BnB 1 Airbnb is an online market platform offering online rental accommodation services around the world via its website and mobile applications. The company was founded in 2008 by Brian Chesky and a friend with an aim of renting rooms to guests who were new in town. It was through this ingenious idea that led to the emergence of a new business model that would revolutionized the accommodation industry. The new concept involved is known as peer-to-peer room sharing model. As of 2018, Airbnb had numerous operational offices spread across over 190 countries listed in properties worth over $4 million with a valuation of $31 billion (Newlands & Lutz, 2018). This new idea has been of great significance to the hotel and tourism industry because it allows hosts to rent additional rooms or entire house to potential guests through a peer-reviewed digital platform. Airbnb, hotels, motels as well as other bed and breakfast companies all operate and compete within the tourist accommodation marketplace. Although all these businesses offer lodging services, they are differentiated by how they offer their services. Hotels and motels are categorized as large accommodating amenities offering multiple or single room services. However, motels have smaller spaces but with parking lots strategically positioned in areas such as laundry section where travelers with personal transportation are served. Motels may be conveniently located in near roadways so as to enable customers to easily access the highway. On the other hand, hotels focuses on providing more amenities such as fine dining and on- premise spa services. In addition, hotels may be designed to offer unique customer experiences for example offering scenic views which may also be costly to operate. The overall wages, utilities and properties accounted for 59 percent of the total tourism costs as shown in the table below: Fig: 1 Hotel, Motel, and Bed & Breakfast Industry expenses in percentage Revenue, 2017 Although these actors may operate under different policies, they are all obliged to strictly adhere to the various government, city and state regulations concerning physical property and food safety, availability of services to persons with disabilities and distribution of alcohol. Both owners and operators are required to acquire several licenses to operate while paying relevant taxes to the authorities.
AIR BnB 2

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