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roomsPrimary domestic marketThe idea is easily copiedViolating zoning laws and laws require hosts topay hotel taxesAirbnb relies heavily on the quality that the host deliver. Therefore, it’s more difficult for them to manage the safety and security of 4 | P a g e
hosts and guestsQuestion 3: In what ways has the lodging consumer changed, and how does Airbnb’s customer value-proposition meet this change?A consumer is a person that consumes a specific product or service. However, thisvaries with the preference of brands that are offered in the market. For theconsumption of either service or product, the buyer must user some money.It is no wonder that the lodging consumer is changing. In the past, customers preferto choose hotels or motels as their lodging preference where they get their ownprivate space. They now prefer sharing or renting. Moreover, they want to feel athome while experience local life.Airbnb provides an online platform which let people rent properties without havingstandard amenities of a hotel. Airbnb not only leveraging technology but also thecurrent change of how consumers interacted with business and how the consumershad deemphasized ownership. The ways Airbnb’s customer value-proposition meetthe change of the lodging consumer:Wish for unique experiences, not focused on ownership: Airbnb deliversusers the opportunity to experience multiple, unique accommodations notconnected with larger brands. Additionally, smaller sole proprietors such asbed & breakfasts may be accessed through the app. Finally, those offeringaccommodations may also share in the desire to not only have a uniqueexperience with a guest, but not be reticent to invite a stranger into their ownhome or apartment.Desire to access experiences immediately through smartphone technology:Airbnb is possibly through smartphone technologies. Further, apps andsmartphones have provided the consumer the opportunity to have immediateaccess, such as purchasing songs immediately only after hearing them on theradio.Airbnb makes consumers feeling like they are living like a local: Hotelshave a way of feeling very business while Airbnbs are immersed inneighborhoods, condos, and townhomes. Staying in an Airbnb that makescustomers feel like they belong in that city or town.5 | P a g e
Question 4: What key factors may determine the success for failure of Airbnb?There are key factors determining the success for Airbnb. Their business modelbased on trust, authenticity and transparency towards guests and local hosts.Initially, Airbnb operated in a space that is commonly referred to as the "sharingeconomy."Airbnb provides a platform to provide products and meet demands through anonline marketplace peer-reviewed. Through exploiting the omnipresent use ofsmartphones and the continental decline in infrastructure costs, Airbnb hasprovided a platform for people who share the number of resources instantly. Theuser will simply sign up and offer the service through the website. The company is