2. Airbnb is a peer-to-peer online
marketplace and homestay network enabling people to
list or rent short-term lodging in residential properties,
with the cost of such accommodation set by
the property owner.
This business model creates new sources of supply
and relies on management for developing quality and
self-attainment of maturity from the vendors, or the
people operating on behalf of vendors.
3. SWOT ANALYSIS
STRENGTHS
24*7
local lifestyle
safety, insurance
3% service fee from host, 12% from
guest
expanding market
trendy public image
high valuation
800,000 listings in 33,000 cities in
192 countries.
20 million in user database
WEAKNESS
• lobbyists from the hotel industry
• violating zoning laws
• scarcity of housing, increasing
rentals
• disputes in mediation
• bad press due to hosts
4. OPPORTUNITIES
dissatisfaction with hotels
due to high prices
change of regulations
new, big, exploitable markets
good press due to charity
growth of mobile devices
market
opportunities in related
markets
celebrity interest
THREATS
growing competitors
unpleasant host experiences
lawsuits and fines
budget hotels, hostels
5. PESTLE ANALYSIS
POLITICAL
Conflicts, tax regulations, wars and conflicts
ECONOMICAL
local hotel chains recognize the threat, competitors, slow
down of economy
SOCIAL
Lifestyle trends, changes in travel frequency, ethical
issues, media
6. TECHNOLOGICAL
increase in internet users, efficient data collection, research
LEGAL
if Airbnb is taking over market share and they are not collecting
or paying the lodging taxes, then that means less tax revenue.
ENVIORMENTAL
lesser greenhouse emissions, lesser water consumption
7. porters five forces
Bargaining power of buyers
Bargaining power of suppliers
Threat of new entrants
Threats of substitute products or services
Competitive rivalry