Case Study 1
1. How would you illustrate and compare the business models for Airbnb, large hotel
chains such as Marriott and Hilton, and bed & breakfast operators? Use the example
chart in the textbook for business models as a guide (Concepts & Connections 1.1)
The 3 different types of accommodations varied greatly in terms of property costs and
expenses. Each business model was built around the travel needs of consumers whether
for business or for personal needs. The traditional model that large hotel chains
operated on required ownership of large property spaces with a compact room setup in
large buildings. This business model required large sums of capital to acquire or build
new locations and would be focused in high traffic areas. Bed and breakfasts aimed to
fit the need of travels in lesser traveled areas or for travelers who sought a more home
style experience to enjoy the surrounding area in a more relaxing manner. Airbnb arose
to fill the voids left by large hotel chains that relied not on ownership of property but
rather on the technology and platform that allowed regular people to monetize their
homes or apartments for travelers. Each model serves its intended purpose well in
providing a consistent and reliable experience to travelers.
