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3. How has the consumer changed and how does Airbnb’s customer value-proposition meet this change? Consumer change in the lodging experience has made Airbnb successful with their customers, because of the development of a functioning spaces commonly known as sharing economies. The old business model was about ownership of assets, but because of the success of Airbnb and other similar companies it started to change where the consumer wants shared or rented spaces. Some companies even adapted to this by offering subscription based services of clothing, watches and even cars. The co-founder of Airbnb was able to meet consumer change by believing that the direction the company needs to be is guests want a more community based feeling with a better connection to the host. The sense of living in a home rather than a home went over so well with some consumers, that in a study by Goldman Sachs it states that “Once someone has used Airbnb,their preference for traditional accommodations went down.” Clearly Airbnb meeting consumers needs of having a more homey feel, without the price of ownership, help the company obtain and create new customers.
4.What key factors may determine the success of Airbnb? A key factor that makes Airbnb so successful is that they rent out their rooms on a technology based platform. This allows users to easily lookup homes/ apartments on their smartphones andtablets. Its successful because it allows individuals to instantly share a number of resources witheach other. Another reason why they are successful is because they use little operational costs, so most of the time the company is only making revenue, unlike big hotel chains that have a lot of costs and expenses. Another factor that I think that is making Airbnb successful is that Millennials don’t want to own rather they want to rent or lease a place. Which is perfect for Airbnb because they will own this part of the market. 5. What recommendations would you make to Airbnb to improve its competitiveness in the accommodation market while mitigating any current and future risks?