smaller operating cost. They take advantage of local’s attraction or historybackground to enrich travelers’ experience while offer them smaller rooms andservice. -Different from two other businesses, Airbnb has their own playground – thetechnology platform. They don’t actually have any estate property or have tosubject to any regulation or taxation. This makes them face great adversity fromother party in accommodation market. Thus, Airbnb could not prevent all hosts/guests using their platform from policy violation. However, Airbnb still come firstin term of technology and operating cost compared to hotels and bed & breakfasts.Question 3:How has the consumer changed and how does Airbnb’s customer value-proposition meet this change?Airbnb not only influence technology, but also influence the change in the interactionbetween customers and businesses. This change leads how the consumer haddeemphasized ownership. In stead of concentrating on ownership, customers seemed toprefer sharing or renting. Because of this change in consumer experience, other startup companies have beentargeting these segments through subscription – based services and on – demand help.Hilton was considering offering a hostel – like option for travelers. Other entrepreneurswere constructing urban properties to specifically leverage Airbnb’s platform and offerrooms only to Airbnb users.Brian Chesky, CEO of Airbnb, believed that Airbnb guests wanted a community and acloser relationship with the host. Therefore, in order to control the community of hostsand guests, Airbnb had set up a rating system. Popularized by companies such asAmazon, eBay, and Yelp, peer – to – peer ratings helped police quality. Both hosts andguests rated each other in Airbnb. This approach encouraged hosts to provide andimprove quality service, while encouraging guests to leave a property they found it.