Advantages Of Airbnb

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Airbnb Business Model Airbnb business model was made to meet the needs of both sides of the market demand. They offer the solution to fulfill the want of travelers to feel part of the local community and gain a unique experience but at the same time reduce cost. The demand for space is met by hosts that want to earn extra income by renting out private rooms, entire homes, and couches. This creates shared economy, an economic model often defined as “a peer-to-peer based activity of acquiring, providing or sharing access to goods and services that are facilitated by a community based on on-line platform” (Radcliffe, 2017). Part of the solution is to give a platform on an app and create a community of users. Since Airbnb is a virtual…show more content…
The 50 cities’ average daily rates change on average and it is determined by constraints to construction. In these cities, Airbnb has grown the most, and the research study suggests that “in markets without constraints, the supply of hotels should adjust so that hotels are pricing close to the marginal cost at least some of the time” (Farronato and Fradkin, 2016). Further recommendation suggests that, “in constrained markets, hotels have market power and should be able to price significantly above marginal costs” (Farronato and Fradkin, 2016). Although Airbnb is consider the challenger to economic hotel rooms, the supply of Airbnb is diverse because they offer a wide range of resting options from couches to luxury apartment. This plays a significant statistical effect in the economy of the market because it has comparable measures. Airbnb is more appealing because it offers cheaper alternatives to traditional hospitality. Hotels offer safer and less awkward private…show more content…
Their recent strategic investment was to convey a search engine, PlacePass, for travel experiences, tours, and attractions in 117 countries. This service will offer assistance to guests with list of activities based on their past reservations and activities through Marriott. This suggests that Marriott's use of artificial intelligence affects the decisions Airbnb makes. Airbnb reaction to this decision is to offers similar features in 40 countries (Robinson, 2017). Marriott's traditional strategy continues to be acquisitions, and they own over 30 hotel brands from high-end to affordable ranges. According to Business Insider, "they have over 1.2 million rooms globally, which puts it 400,000 rooms shy of Airbnb count in 2016"(Robinson, 2017). It is no surprise that their next move is to launch Marriott rewards for messaging apps that include: Facebook messenger, Slack, and China’s WeChat (Robinson, 2017). The Marriott needs to catch-up to Airbnb’s

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