...discusses about how to engage the solutions to end-users. We know that Airbnb is an online market that connects users who has property to rent with users who are looking to rent the space. So here end-users are categorized as ‘Hosts’ and ‘Guests’ and most of the time, one person can be a host and a guest at a same time. Let’s make an example for you guys to further understand. Firstly, let’s assume an imperial college student has rent an apartment in London and he wants to go to Scotland during Christmas holiday. Generally he could search the Airbnb to find a property to rent in Scotland, but at the same time he could also post his London apartment in the Airbnb for other students who want to go to London for their holiday. This makes this student as a host and a guest at the same time. The benefit is obvious that this student could save a large amount of money because the renting payment he received could cover the traveling fee. From this example we could see that the customers of Airbnb is mostly low and middle income people who would like to have a property to live during their holidays. Hence, I think the question how to engage the solutions to end-users in Airbnb is to apply its business models to low and middle income customer groups. OK now let’s turn to the next part, institutions. First I will put forward a key idea that conclude what I am going to say. From our analysis, we found that the Airbnb would significantly change the hotel institutions styles in the...
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...Homework #3: Airbnb Case Study 1. What is Airbnb’s current value proposition? Airbnb is a consumer-to-consumer platform that helps people find accommodation for short term rentals. Airbnb’s current value proposition is that it can offer hosts a chance to earn money from their house or spare room; for the renters, they can feel more comfortable and more at home with paying less money than most hotels. Airbnb focuses on personalizing the guest experience and creating a great value proposition for traveler and host. It describes its measures of success to be social and economic. Figure 1 shows the cost between hotels and Airbnb. Airbnb apartments that are similar to hotel rooms show considerable savings in most major markets, which is 21% cheaper than a hotel. Figure 1 http://priceonomics.com/hotels/ 2. What is Airbnb’s biggest current opportunity? Airbnb’s biggest current opportunity is the potential market that Airbnb has not impacted on. To seek the potential market, Airbnb can develop new market and grow market share. For example, Africa is a good place for the expansion of Airbnb. Africa--like Cuba, where Airbnb is also growing fast--presents the company with a singular opportunity: There are too few budget and mid-priced hotels. [2] Data from two providers, Statista and STR Global, both show that the Middle East and Africa region have the highest average daily rate for a hotel room. Therefore, Airbnb’s cheap price can attract more people to use it. Figure...
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...UCLA | ECONOMICS 106T | FALL 2012 TA: SIWEI KWOK | PROFESSOR BOARD STEVE WU FRANK LEE JEREMY REYNARD Airbnb For all the lone wanderers or people just searching for a “home away from home,” Airbnb has created the perfect solution for renters and providers worldwide. Since its inception in 2008, Airbnb started an innovative community marketplace for people to list, discover, and book a wide variety of accommodations around the world. Airbnb has pioneered a new industry of “collaborative consumption” and peer-to-peer accommodation rentals, which leaves room for the company’s potential growth and worldwide adoption. Airbnb has experienced immense success with over 1 million hosts and travelers, over 10 million nights booked, and over 26,000 cities within 192 countries.1 Despite the substantial growth and potential within this new industry, Airbnb faces several strategic issues moving forward. Airbnb lacks a sustainable competitive advantage, faces a heavy influx of new competitors, and also faces multiple legal and trust issues in the market. Airbnb must determine its direction moving forward or risk losing its competitive position in this emerging industry. Collaborative Consumption Movement Collaborative consumption is a term used to describe the “rapid explosion in traditional methods of sharing, bartering, lending, trading, renting, and swapping.”2 Also known as a “peerto-peer online marketplace,” this trend has seen immense growth in recent years. This exponential...
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...Dissecting the Success of Nina4Airbnb A White Paper on The Foundations of Marketing and How You Can Apply The Lessons to Your Campaigns By Nina Mufleh July 2015 What’s This About? In April, I launched the most exciting campaign of my career. After a decade of working with high profile personalities and Fortune 500 brands, I applied what I learned about marketing and storytelling to build a campaign that would show Silicon Valley com panies the value I would add to their teams. W ithin two weeks, the website that hosted the cam paign received nearly half a m illion hits, m y resum e was viewed over 14,000 tim es and I achieved m y goal of interviewing with Airbnb and dozens of other high profile companies. W ith global m edia attention and m illions of im pressions through social m edia, the experim ent was a hit. I’ve worked on several high impact campaigns, and this is the most exciting one because it succeeded without a budget or a support team, proving that the success was completely tied to executing the foundations of marketing. I never formally studied marketing, but I’ve always had an insatiable curiosity about what grasps people’s attention. I taught m yself the foundations by harnessing that curiosity, and I’m sharing my approach to creating Nina4Airbnb with the aim of adding value to other curious minds and sparking m ore interesting campaigns. The Background / The Challenge I moved back to California in 2014 after a decade in the Middle...
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...AirBnB: 1. DS network L side1: guest->negative side2: host/renters cross effect is strong on both direction: more hosts is high, not winner take all market: * 1 multi-homing cost is low; * 2 no differentiated: have hotels cruises, Disney(other choices, have other people that have other model of holiday logic) * 3 even network effect is high 2. friction in the market: a. trust: uncertain type of users(g and h), incomplete file b. safety/security c. damage property d. missing info -> moral hazard e. no first time info f. unlicensed g. no insurances h. understandardized [what if a renter keep refusing? If frequency is high, the website would put them back on the searching list. ] 3. EJ problem: * Good renter * Trashed in apartment * … solve it? * Screening(if too intense, they are not working or make things worse) * background checks * credit history for funds * mental health * national ID * increase incentive to complete the profile * subscription fee * Authentication: * profile link->fb,linkdlin * background check during registration * Liability * Guarantee property Reputation system 4. How to build rep sys i. Screening (how to predict discrimination, will you destroy the market because of discrimination problem) i. Background id, Audit check, Criminal record, Mental...
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...Keys Global Marketing Research Paper Airbnb: Alternative Hospitality Introduction When a design conference came to San Francisco in 2007 and wiped out available vacancy in hotels, Brian Chesky and Joe Gebbia sought an opportunity to lessen their financial burdens and rent out the available space in their apartment. Almost 6 years later, their solution evolved into a successful Internet service that allows members to rent out homes or spare rooms to travelers. Through alternative marketing strategies including: acquisition, content marketing, and social engagement and personal testimonials, Airbnb now values at almost $2.5 billion. Officially founded in August 2008, Airbnb.com has become the traveler’s ‘go-to’ resource when looking for accommodations in over 192 countries. The original web site offered short term lodging, home-cooked breakfast for travelers as well as a business networking opportunity for those willing to share their space. The simplicity of the site has made it easy for members to build their own profile online to better connect with potential clients from all over the world. Lodging found through Airbnb varies from entire homes and apartments to igloos and private islands, creating a unique experience for every traveler. Acquisition In the beginning of 2011, Airbnb acquired a German competitor, Accoleo, initially launching their first international office. As international user rate increased, Airbnb established international offices in Paris...
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...society swears today more than Airbnb. The concept proposed by this site meets a real demand: it is to link individuals who want to rent their homes to supplement their ends with travelers seeking accommodation at lower prices. No wonder that this start-up in Silicon Valley has attracted over 4 million users in 192 countries worldwide. As I read through the case; I realize that Airbnb did not respond in a good way. However, how they reacted in the long-run was very smart. Indeed, they apologized and promised to strengthened their security for the safety of each customer. 2. Airbnb Four million passengers have already tested the concept . The ads make the visitors dream : Prices also are attractive: 100 euros per night for a three - bedroom duplex terrace overlooking the Eiffel Tower. Cheaper than a room in a small hotel next door. Select, contact, and book: three clicks, it is done . " We owe our success to our business model : the ad is free , we only take a commission at the time of the transaction ," said Nicolas Ferrary . 3% paid by the host, 6 to 12% by the traveler. In crisis, Airbnb democratizes tourist rental . " We rent our three-piece 750 euros per week , enough to pay a part of the holiday ," explained Isabelle and Quentin . Like them, 35,000 "guests" in France - 15 000 Paris supplement their income by renting their couch , their guest room, their apartment or house. However, the site is sometimes more than just extra income. (Airbnb, 2013). 3. Social Media...
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...Airbnb vs. Premier Inn: the rise of “collaborative disruption” Peer-to-peer consumption is on the rise. Many companies are now leveraging the phenomenon of “decreased barriers to interaction” brought about by internet and social networks to help their users rent each other’s houses, cars, parking space, cooking skills and much more. Airbnb allows users to rent out their idle living space (couch, room or their entire house) to generate extra revenue. By providing people seeking accommodation with an alternative to hotels, Airbnb’s platform also directly competes for a chunk of the hotel hospitality business. In this essay, we will argue that Airbnb will continue being a successful business, possibly at the expense of incumbents focused on price differentiation, such as Premier Inn1. In order to support this argument, we will start by analyzing Premier Inn and it’s competitive environment using Porter’s2 article as a main point of reference. We will then focus on Airbnb, and why the company will continue being successful in the next years. First we will see how the company has advantageously positioned itself to ride current economic and technology trends, setting up its future success. We will also look at Airbnb’s disruptive innovations on both the supply (opportunistic, non-professional hosts) and demand side (price conscious over-served guests), and how these were stepping to access to higher customer segments. Finally we will argue that Airbnb has found a distinctive set of...
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...the big deal? Air BnB is a growing online service which facilitates the availability and marketing of, generally, residential accommodation as tourist accommodation. Airbnb defines itself as a “social website that connects people who have space to spare with those who are looking for a place to stay". The site has been the subject of much debate around its creation of a sharing economy for tourist accommodation which may avoid taxes, expose guests to undue risks, and broadly have a negative impact on legitimate tourist accommodation. The last of these is a real concern as the site lists accommodation under three primary types: 1. “Entire place” – basically a holiday home or unit generally 2. “Private Room” – similar to B & B style accommodation 3. “Shared room” – similar concept / style to a sort of private backpacker accommodation However, by industry practice Air BnB equates to an OTA or booking engine in style and seemingly focuses and attracts micro accommodation providers covering many traditional styles but also simply free bed space (being the original concept). Indeed the term micro-hotel has cropped up a lot lately in line with the service. Basically it facilitates turning homes into tourist accommodation – a lot like a B & B or Holiday Home – so what’s the big deal? AirBnB charge guests a 9-12% service fee every time a reservation is booked, depending on the length of the reservation, and they charge hosts a 3% service fee to cover the cost...
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...Is AirBnB a threat on traditional accommodation? With the rapid growth of Airbnb, I think that it poses a real threat to traditional accommodation offerings in the Caribbean. AirBnB is an online service which allows hosts to rent out their homes or spare bedrooms. This has become a threat to the traditional hotel companies, which are now trying to figure out ways to compete in the sharing economy. In the sharing economy, any person can list their own property online for rent which AirBnB can clay claim to being the world’s largest hotel chain without owning a single room. Airbnb has become more appealing to investors by its low overhead. Compared to traditional hotels, the company doesn’t have to worry about the high turnover rates of bellhops and front desk clerks like hotels do, and it doesn’t have to concern itself with real estate prices and franchise partnerships. Many people who have used AirBnB said that hotels might offer predictability, but they are looking for an adventure, which they never found in a hotel. Also they considered it to be much cheaper than traditional hotel accommodation and that they can exist a little more locally and authentically. Hotels are already feeling the effects of Airbnb’s approach to room rentals, but continued growth could force the hotels to lower room prices. Traditional hotels should form partnership with AirBnB. They could offer packages to guest of AirBnB at a reasonable cost that would be attractive to the guest. Also Traditional...
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...E-Business Group Final Presentation and Project Depth Analysis AirBnB Tuesday Session-16h30/19h30 Agbaba Felipa- Bal Laura- B00538278 Castaneda Pablo- B00681481 Gillet Clara- B00537943 Hourlier Giovanni- Rimoux Tess- SUMMARY 1. Size and importance of the market globally, in Europe and (if relevant) in France 2. How the sector has traditionally worked 3. The effect of the Internet on the sector 4. Who the major global players are (then discuss one of the major global players as a more detailed example) 5. E-business models being used by the major player you chose in part #4 (including analysis of revenues and costs involved; you can use the business model canvas as a guide) 6. Consumer reaction to e-business in the sector (not just the chosen company, but the sector as a whole) 7. Future development of the sector driven by e-business (the sector as a whole) 1. Size and importance of the market globally, in Europe and (if relevant) in France. Tourism is one of the most dynamic and resilient economic sectors. With international globalization tourists’ arrivals are reaching one billion each year and growth only expected to increase. Opportunities in the tourism industry are endless. Europe is the world’s most visited regional destination, an increase of 5% in international tourist arrivals has been noticed. It’s the highest increase across all regions and a notable result for a rather mature region. In France tourism is a major industry, the...
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...* Should AirBnB target business travelers or vacation travelers or both? Why? I think AirBnB should target both business travelers and vacation travelers, but for the business travelers, AirBnB need to focus on those who attend big festivals or large conferences and trade fairs. Because the selling point of AirBnB is reasonable price and multiple options, those vacation travelers might have limited budget, AirBnB will be a good choice for them to save money and experience the local family culture at the same time. Otherwise, for those business travelers who need to attend big events/festivals/ trade fairs, the hotel rooms are usually limited and sold out quickly, or the hotel rooms might be far away from event locations, so AirBnB will be another way to help them find a space to stay. Therefore, I think AirBnB should focus on these two target markets. * How could the AirBnB website (based on Exhibits 3 and 4) have been improved? For the one on March 2008 (Exhibit 3) was want to target those who attend events, so the website was simply show people they offer a bed, breakfast and a host family for all attendees/travelers. The layout and design were simple but clear. Also it had some references form other sites to support that they are good options for attendees/travelers. Moreover it asked people to consider it as Craigslist, only for hotel rooms, it was good to show people how AirBnB works, but it was bad to make people connect AirBnB with Craigslist scams. The sits...
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...Airbnb, Inc. Marketing Plan Table of Contents Executive Summary 3 Situational Analysis 3 Company Analysis 3 Company and Marketing Objectives 4 Screening Criteria 5 Company Resources 5 Present Marketing Strategy 6 Marketing Collaborators - Current & Potential 7 Political and Legal 7 Competitive Analysis 9 Customer Analysis 11 Demographic Data 12 Market Analysis 12 Who is the target market? 12 Problem and Opportunity Summary 13 S.W.O.T and Key Factors from Situational Analysis 14 Strengths of Airbnb 14 Weaknesses of Airbnb 14 Opportunities of Airbnb 15 Threats of Airbnb 15 Target Market 15 Positioning Strategy 20 Other Core Strategies 22 Product 23 Product Life Cycle 27 Channels 27 Sales building blocks – techniques 28 Price 29 Promotion 33 Hospitality Forecast and Airbnb future 36 Conclusions: 37 Bibliography 38 Executive Summary Airbnb, Inc was built because of a risky idea and the company has continued to take risks as they have grown since 2008. That tendency of taking a risk has grown the company from eating dry cereal to survive, to being worth around $10 billion. Airbnb will continue to take that risk and succeed with their outlook toward customer service and providing the “sharing community” that Brian Chesky, Joe Gebbia, and Nathan Blecharczyk dreamed up. Opportunities for expanding brand awareness are what the company will focus on now with more advertising by mainstream media and word of mouth...
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...facilitating a company in various perspectives. In this essay, a fast-growing company called Airbnb, adopting concept of collaborative consumption, will be analyzed to demonstrate the use of cloud computing. Background Airbnb is an American company founded in 2008, an online platform for people to rent out, list, discover, and book lodging, including private rooms, entire apartments, castles, boats, private islands and other properties around the world. Through online or mobile phone, a transaction can be done conveniently (Airbnb, Inc., 2014). Airbnb has expanded to host more than 500,000 listings across 192 countries since launched in 2008 (King, 2013) and has now served 9 million guests in the fifth year (Lawler, 2013). However, one year after launched, It experienced service administration challenges because of its original cloud computing provider, therefore, Airbnb decided to migrate nearly all of its cloud computing functions to Amazon Web Services (AWS) (Amazon, 2014). Benefits for adopting cloud computing Definition Cloud computing is a type of computing that relies on sharing computing resources rather than having local servers or personal devices to handle applications (webopedia, 2014). 1.) Cost Reduction Airbnb is one of the businesses adopting cloud computing. It selected AWS since it saved the expense of at least one operations position. Airbnb are using 200 Amazon Elastic Compute Cloud (Amazon EC2) instances for its application,...
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...Mass migration to Europe and its positive and negative implications – Sharing economy Introduction The hotel industry has been strongly growing recently, overcame many events to make us believe that they will not stop adapting to the new environments. Practicing economics activities helps the industry to explain the change of the environment and plan the solutions in the most efficient way. In this report, I will state two of the most recent events which are the mass migration to Europe and also with the term sharing economy, together with its impacts to the hotel industry under economic perspective. Development Mass migration to Europe and its positive and negative implications Migration means the movement of people from one place to another place, temporary or permanent, volunteered or forced, internal or international (eschooltoday, 2014). People move for different reasons: move to work in another country, move for a better of life, escape from natural disasters or human wars, etc. 2015 was an alarming and distressing year to the world because of many wars and terrorism events happened. It has set a record for migration stage into Europe by different routes. Only talking about refugees, there were more than 1 million migrants have arrived in Europe (e.g. Germany, Austria, Sweden, Italy, UK and more) by sea and almost 35000 by land, mostly they are from the countries suffering from wars such as Syria, Afghanistan, Iraq, etc. formed a mass migration...
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