Yiying Zhang
WPC480 : Business Analysis
Business Analysis of Airbnb
Airbnb is a peer-to-peer online marketplace and homestay network that enables people to lease or rent short-term lodging in residential properties, with the cost of such accommodations set by the property owner. Like all hospitality services, Airbnb is an example of collaborative consumption and sharing. It created jobs which achieve earnings of the sellers and savings for buyers. Airbnb profits mainly from charging a 3% service fee of renting rooms to the owner and 6-12% of booking price to renters. Combined the low overhead of a web-based hoteling application, and the unique experience provided to their customers, Airbnb appears to be highly valuable to their customers. So how does Airbnb strive to be valuable?
One cannot deny that Airbnb home-sharing business model has given the economy a new direction. Airbnb has generated opportunities and jobs for people earning income and gives people a respite from the burden of their large home loans. Therefore, Airbnb’s market share in comparison to hotel industry has been gradually growing and in 2017, it could reach 10% in the Western and the Eastern Europe (Kookie). For these reasons, it has brought a positive effect on economic development. Moreover, …show more content…
Kim and Mauborgne state that the most defining features of a blue ocean strategy is the simultaneous pursuit of low cost and differentiation. Airbnb utilizes this strategy through their dedication to delivering high value for money and a unique service experience to customers, and they also provide service at a lower cost compared to other businesses. As a result, Airbnb has successfully raised an enormous number of fans. After four years of existence, in 2012, Airbnb was valued at over $1 billion. In 2017, the company boasts a $31 billion valuation (Natalie
WPC480 : Business Analysis
Business Analysis of Airbnb
Airbnb is a peer-to-peer online marketplace and homestay network that enables people to lease or rent short-term lodging in residential properties, with the cost of such accommodations set by the property owner. Like all hospitality services, Airbnb is an example of collaborative consumption and sharing. It created jobs which achieve earnings of the sellers and savings for buyers. Airbnb profits mainly from charging a 3% service fee of renting rooms to the owner and 6-12% of booking price to renters. Combined the low overhead of a web-based hoteling application, and the unique experience provided to their customers, Airbnb appears to be highly valuable to their customers. So how does Airbnb strive to be valuable?
One cannot deny that Airbnb home-sharing business model has given the economy a new direction. Airbnb has generated opportunities and jobs for people earning income and gives people a respite from the burden of their large home loans. Therefore, Airbnb’s market share in comparison to hotel industry has been gradually growing and in 2017, it could reach 10% in the Western and the Eastern Europe (Kookie). For these reasons, it has brought a positive effect on economic development. Moreover, …show more content…
Kim and Mauborgne state that the most defining features of a blue ocean strategy is the simultaneous pursuit of low cost and differentiation. Airbnb utilizes this strategy through their dedication to delivering high value for money and a unique service experience to customers, and they also provide service at a lower cost compared to other businesses. As a result, Airbnb has successfully raised an enormous number of fans. After four years of existence, in 2012, Airbnb was valued at over $1 billion. In 2017, the company boasts a $31 billion valuation (Natalie