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    Case Discussion #1 Airbnb

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    Ho Thi Phuong Thao
    Hotel chains have extensive experience but high costs, while bed and breakfasts have passionate owners but limited recognition. Airbnb appeals to travelers seeking community with its platform for renting unique homes. As consumers prefer sharing over ownership, Airbnb meets this change through a peer-to-peer system enabling homeowners to share space and travelers to find unique accommodations. Key factors in Airbnb's success are its experience-focused business model and position in the sharing economy. Recommendations include leveraging data to help set prices and availability, promoting diversity, and providing additional services.

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    Case Discussion #1 Airbnb

    Uploaded by

    Ho Thi Phuong Thao
    191 views2 pages
    Hotel chains have extensive experience but high costs, while bed and breakfasts have passionate owners but limited recognition. Airbnb appeals to travelers seeking community with its platform for renting unique homes. As consumers prefer sharing over ownership, Airbnb meets this change through a peer-to-peer system enabling homeowners to share space and travelers to find unique accommodations. Key factors in Airbnb's success are its experience-focused business model and position in the sharing economy. Recommendations include leveraging data to help set prices and availability, promoting diversity, and providing additional services.

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    Case Discussion #1 Airbnb

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    Hotel chains have extensive experience but high costs, while bed and breakfasts have passionate owners but limited recognition. Airbnb appeals to travelers seeking community with its platform for renting unique homes. As consumers prefer sharing over ownership, Airbnb meets this change through a peer-to-peer system enabling homeowners to share space and travelers to find unique accommodations. Key factors in Airbnb's success are its experience-focused business model and position in the sharing economy. Recommendations include leveraging data to help set prices and availability, promoting diversity, and providing additional services.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    191 views2 pages

    Case Discussion #1 Airbnb

    Uploaded by

    Ho Thi Phuong Thao
    Hotel chains have extensive experience but high costs, while bed and breakfasts have passionate owners but limited recognition. Airbnb appeals to travelers seeking community with its platform for renting unique homes. As consumers prefer sharing over ownership, Airbnb meets this change through a peer-to-peer system enabling homeowners to share space and travelers to find unique accommodations. Key factors in Airbnb's success are its experience-focused business model and position in the sharing economy. Recommendations include leveraging data to help set prices and availability, promoting diversity, and providing additional services.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    MGMT449

    THAO HO

    Assignment Questions

    1. Compare and contrast the general strengths and weaknesses of large, hotel chains such as
    Marriot and Hilton, bed & breakfasts, and Airbnb.

    Airbnb, hotels and bed & breakfasts competed within the accommodation market. All business
    operating within this sector offer lodging but were differentiated by their amenities. Both have
    less attrition rate and high employee.

    Hotel chains

    a. Strengths
    - Extensive experience and a vast scope of the business
    - Effective customer retention schemes
    - Strong property portfolio
    - Consistency and fully investment on additional amenities by competing in all segments of
    travel: hotel rooms, fine dining and spa services
    b. 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 brands

    Bed and Breakfast

    a. Strengths
    - Have great location and facilities
    - Owners who are passionate about their work
    - Relatively small and easy to manage business
    b. Weaknesses
    - Poor brand recognition and reputation
    - Limited facilities mean limited amount of sales
    - Owner struggle to take care of everything because the low number of employees

    Airbnb

    a. Strengths
    - it appeals to the more “free-sprit”, their website makes it easy to book the day before
    arriving and the ability to stay in almost any location.
    - giving the consumer all the power, if they want 4 bedrooms, a kitchen, or to rent a room
    from a large family
    - their idea of local authentic experience.
    - an opportunity to stay or “live” in an actual house/apartment.
    b. Weaknesses
    - does not have operational control therefore the experience is inconsistent
    - endure that their customers are in the safest areas and hosted by the safest hosts.
    - Cleaning standards not uniform
    - Meeting and group friendly facilities and services are not available

    2. How has the consumer changed and how does Airbnb’s customer value-proposition meet this
    change?

    How has the consumer changed?

    - Instead of focusing on ownership like in the traditional economy, consumers seemed to prefer
    sharing or renting from luxury watches to clothing, cars, houses, apartments and so on.
    - Not owning- assets seemed to be on the rise.
    - have desired a community and a closer relationship with the host and there to be support for
    this assertion.

    How does Airbnb’s customer value-proposition meet this change?

    - a community-based, two-sided online platform that facilitates the process of booking private
    living spaces for travelers: enables owners to list their space and earn rental money and
    provides travelers easy access to renting private homes.
    - peer- to- peer rating system greatly minimized the otherwise significant task and expense of
    Airbnb staff accessing and rating each individual participant within Airbnb’s platform.

    3. What key factors may determine the success of Airbnb?

    - Creating and combining the two elements of a business model: customer value proposition
    and profit formula (Sell the Experience rather than the venue).
    - Airbnb confirmed its position in hotel industry by applying sharing economy.

    4. What recommendations would you make to Airbnb to improve?

    - Has at its fingertips a wealth of data that it’s not yet leveraging as well as it could. Hosts, guests,
    and Airbnb can all benefit from the company better mining data and making valuable insights
    available to users.
    - Help host price their property: has a massive collection of data around rental prices.
    - Flexibility in dates: Give guests with flexible itineraries the option to add a plus-or-minus range
    to their requested dates.
    - Should build and release a feature to address the instances of someone requesting a booking
    that was listed as vacant but then getting informed that it wasn’t available.
    - Should formed a team of engineers, data scientists, researchers and designers whose full-time
    jobs are to promote diversity and eradicate racism and bias from the Airbnb platform.
    - Provide more services to its customers than just providing a bedroom.

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