II Analysis 1 Airbnb business model in comparison to larger hotels and other

Ii analysis 1 airbnb business model in comparison to

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II. Analysis 1. Airbnb business model in comparison to larger hotels and other bed and breakfast formats Airbnb business model Customer segments of Airbnb include two main groups: hosts and travelers.[Air17] The hosts are people who own a property, with a mean age of 35 and an average or low income (since as the study shows almost half of the Airbnb hosts audience – 42%, uses the rent earning to cover everyday life expenses.[Got] Apart from property ownership there are other characteristics that the hosts have. The property has to have some excess capacity and they have to be willing to rent it out. Among the psychological portrait of the target host it is easy to find the word “independent”. This belongs to the lifestyle element
3 of a typical Airbnb host. They would like to stay independent from estate brokers and maybe even fixed working hours. The goal of money-making does not necessarily has to be the first; some say they enjoy meeting new people.[zun15] Under this category a particular group consists of hostels or small Bed & Breakfast hotels who can list on Airbnb according to the site rules. Bigger hotels are also using Airbnb as marketing tool and list their rooms.[Sar15] [Lau15] “Travelers” consumer segment is mainly represented by young people (but not necessarily) with average or below average income with certain view to life and particular lifestyle. The main goal of such travelers is not necessarily comfort, but the involvement into local culture and surroundings. They also have to be technologically up-to-date and flexible up to a certain point in their travel arrangements. Same as in the “hosts” category, Airbnb also offers a business solution for travelers. This includes unconventional stay spots for business trips and direct charging for companies that are part of the program. Value proposition of Airbnb can be described in general and also specifically for different customer groups. Airbnb offers a platform that connects the hosts and the travelers and enables both to satisfy their need in a convenient, efficient and trustworthy manner. Additionally, to hosts Airbnb offers a lower fee than other rental sources, an extremely broad audience and a chance to meet and greet people from all over the world. To travelers Airbnb gives an opportunity to stay in an individual space for a relatively cheap price and experience the local life of the place they wish to visit. Apart from that, Airbnb lists some unconventional places of stay that are hard to find otherwise (examples could be a castle, a tree house or a houseboat). Airbnb main sales and distribution channels are Airbnb site and applications for mobile devices. The payment methods are various from a card payment to Apple Pay through the application. They also include local payment systems such as Alipay in China, Boleto Bancário in Brazil and iDEAL for Netherlands. As for communication channels, the main mode of promotion for Airbnb is content marketing. Content marketing is a marketing

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