Airbnb Porter five forces analysis, Porter five forces model, Porter analysis, airbnb, ecommerce, couchsurfing, hotel, hostel, night accommodation, Booking.com, 9flats.com
While providing more than 7,000,000 accommodation listings around 81,000 cities and 220 countries, Airbnb (www.airbnb.com) is a major player and leader in the sharing economy. The platform offers an online broker service allowing individuals to rent or to hire short-term accommodation. These include vacation rentals and apartments, homestays, hostel beds and hotel rooms. Instead of booking at a hotel or a B&B, guests have the options of staying at properties owned by various individuals, potentially enjoying a more original and personal experience.
[...] As Airbnb grows, its competitors offer the same or similar concept. These businesses generally fall into three main categories: Hotels They are considered to be the most readily available and best known for every traveller. Through the existence of Airbnb, hotels have noticed changes in consumer preferences due to the availability of new social- oriented products, rental settings, and more functional applications. Hotels have succeeded in meeting this demand by expanding their portfolios. They have done so by adding brands aimed at appealing to millennial guests and those who want fewer services and more connectivity - both technologically and as a shared space. [...]
[...] - Price - which varies from minimum to maximum - Size - number of bedrooms, bathrooms and beds, etc. - Amenities - Internet connection, kitchen, swimming pool, etc. - The type of property - standard properties such as apartments, houses and guesthouses - The host language - available in 62 languages including English, French, German, etc. B. Porter's Forces Model Airbnb's Porter's Forces model analyses the company's competitive environment in relation to its competitors. The purpose of Airbnb's Five Forces Analysis is to determine Airbnb's competitive advantage and strategies for reaching more travellers. [...]
[...] These include the threat of substitute products, established rivals, assessing new market entrants, as well as two forces of power, the bargaining power of suppliers and that of customers. II. Porter's Forces A. Threat of New Entrants As Airbnb grows, so does the threat of rival companies offering the same concept. However, these threats are not always considered much of a danger. New companies like booking.com have been seen as one of Airbnb's biggest rivals. The threat from newcomers has been low to moderate for Airbnb. [...]
[...] In addition, customers have no real alternatives at the moment. There is also no way for customers to group together to benefit from group purchasing. The potential guest has no real negotiating power because they know and understand the monetary value of the room or apartment when looking online and before booking. There are a few exclusions when the client can possibly negotiate with the host, but this is not common. The client or guest has many different options where they can get an idea of the possible environment they will be staying during their visit. [...]
[...] The main reasons why travellers prefer to use Couchsurfing are; - The significant possibility of finding free accommodation anywhere in the world. - The traveller can choose a host based on location, allowing them for instance, to stay in town instead of a low-cost motel just minutes away. - Couchsurfing enthusiasts are people who are adventurous and have travelled a lot and are always happy to teach and share moments of their life with their host. This trait makes their travels much more exciting and may even turn some hosts into long-time friends. C. [...]
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