Airbnb Large Hotels Bed Breakfast Value Proposition Operating an uber like

Airbnb large hotels bed breakfast value proposition

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Airbnb Large Hotels Bed & Breakfast Value Proposition - 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 locals home which the owners have extra room for guest. The service owner 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 local host with lower - Famous and well-known reputation. - Large amount of additional activities to be invested in such as gym, pools, spas, etc,.. along with operating cost to competed for other segment of tourist. - Providing single or 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 service owing to the fact that the firm does not own any hotel. - Local host is not included in laws, regulations and taxation like the traditional hotel. - Expensive for customer depends on the tourism season and the demand. - Expanding the business by expand the physical location or merging. - Price depends on the demanding of the guest toward the room Question 2: What are the general strengths and weaknesses of a) large, hotels chains such as Marriott and Hilton, b) bed & breakfasts, and c) Airbnb? Explain how 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 the information by comparing businesses. Large Hotel chains Bed & Breakfast Airbnb Strengths Strong property portfolio Attractive amenities like pools, gyms, Offered a more personalized, quieter atmosphere Clear business model base on service fee by connecting hosts and 3 | P a g e
spas, fine dining Spectacular views On-site free parking Quicker access to highway Established in rural areas since big hotel investment may have been cost prohibitive Hosts can offer insight into local life Medium operating cost Tax advantage when running a self-business travelers through the process of renting with their technological platform without owning the properties Low, affordable price compared to large chains hotel Dual rating system for host and guest Low operating cost Weaknesses High fees Tax and regulation Significant operating cost: the industry’s total cost in 2015 account for 61% of wages, property, and utilities, as well as purchases such as food Breakfast options are often fixed or limited Can lack amenities and privacy Limited number of

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