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AirbnbLarge HotelsBed & BreakfastValueProposition- Operating an uber-like systems,the firm does not possess any rooms although being a hotel chain firms. The firm offers a technological platform for advising, listing and renting localshome which the owners have extra room for guest. The serviceowner can gain extra income and the firm will get some money from the service.- Tourists can book room through Airbnb platform and get a room from localhost with lower - Famous and well-known reputation.- Large amount ofadditional activities to be invested in such as gym, pools, spas, etc,.. along with operating cost to competed for other segmentof tourist.- Providing singleor multiple guest rooms.- Providing beautiful scenery.- Providing parking lots.- Limited in size, the house owner offers a room or two within their home to provide stay for guest.- Cozy and home-like atmosphere comes up with more personalized, quieter and peacefull stay.- Providing bed and breakfast with good environment for the guest’s experience.2 | P a g e
price than other hotel.- Airbnb offers a ratting and review system which tourist can choose the best local host for their stay.Profit Formula- Decreasing the operating cost compare to traditional serviceowing to the fact that the firm doesnot own any hotel.- Local host is notincluded in laws, regulations and taxation like the traditional hotel.- Expensive for customer dependson the tourism season and the demand.- Expanding the business by expand the physical location or merging.- Price depends on the demandingof the guest toward the roomQuestion 2: What are the general strengths and weaknesses of a) large, hotels chains such as Marriott and Hilton, b) bed & breakfasts, and c) Airbnb? Explainhow you would compare those businesses. Below are the general strengths and weaknesses of the large hotel chains, bed &breakfast and Airbnb. Despite the short explanation, the table gives you theinformation by comparing businesses.Large Hotel chainsBed & BreakfastAirbnbStrengthsStrong property portfolioAttractive amenities like pools, gyms, Offered a more personalized,quieter atmosphereClear business model base on service fee by connecting hosts and 3 | P a g e
spas, fine diningSpectacular viewsOn-site free parkingQuicker access to highway Established in rural areassince big hotel investment may have been cost prohibitive Hosts can offer insight into local lifeMedium operating costTax advantage when running a self-businesstravelers through the process of renting with their technological platform without owning the propertiesLow, affordable price comparedto large chains hotelDual rating system for hostand guestLow operating costWeaknessesHigh feesTax and regulationSignificant operating cost: the industry’s total cost in 2015 account for 61% of wages, property,and utilities, as well as purchases such as foodBreakfast options are often fixed or limitedCan lack amenities and privacyLimited number of