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Whether an apartment for a night, a castle for a week, or a villa for a month, Airbnb connects people to unique travel experiences, at any price point, in more than 65,000 cities and 191 countries. And with world-class customer service and a growing community of users, Airbnb is the easiest way for people to monetize their extra space and showcase it to an audience of millions.2.AnalysisQuestion 1:Using the example chart in the textbook for business model, illustrate and compare the value proposition for Airbnb, large hotels such as Marriot and Hilton and bed & breakfastsAirbnb, hotels and bed & breakfasts competed within the accommodation market. All business operating within this sector offer lodging , but were differentiated by their amenities.3
Question 2:Comparison and contrast the general strengths and weaknesses between large hotel chains such as Marriot or Hilton versus B&B versus Airbnb.1.Hotel chainsa.Strengths-Extensive experience and a vast scope of the business-Effective customer retention schemes-Strong property portfolio4CustomerValuepropositionHotelBed and breakfastsAirbnb-Invest heavily additional amenities as they competed for all segments of traveller.Amenities,including on-premise spa facilities, swimming pool, cocktail bar, fine dinning, were oftenoffered by large hotels futher, properties offering spectacular views, large space, luxurious furniture,bolstering a hotel as the vacation destinatination-Cost customer thousands of dollar.-Wages, property and utilities as well as purchase such asfood, account for 61% of the industry’s total costs.-Smallest, usually where owner- operators offered a couple of rooms within their own home to accommodate guests. Thus, the bed & breakfastcompeted through offering an ambience associated with a more rural, slower pace through wich travellers connected with their hostsand the surrounding community.-The guests desired a cozyhome – like ambience – enviroment in bed & breakfast. Offer a more personalized, quieter atmostphere, futher , many bed & breakfast establishments were in rural areas where the prohibitive, the location itself could be an attraction to tourists.-Individuals invested in home and properties , possibly with historical background, to offer a bed & breakfast with gret allure and ambience for the guest’s experience.-Cheap , covinent serviceto its customer. Airbnb helps homeowners who have spare rooms to earn extra income also help travellers to finda space to stay with low cost.-Enables owners to list their space on the platform and earn retal money. -Provide insurance to listed properties.-Gives cheap options to travellers to staywith local hosts.-Rating and review system for hosts and guests.
-Consistency and fully investment on additional amenities by competing in all segments of travel: hotel rooms, fine dining and spa servicesb.Weaknesses-Fees are high with overloaded number of guests in travel seasons-The operating cost keeps high-High level of debts-Little global market share despite the large portfolio of brands2.