FINC 3310 Discussion 2
It’s no doubt that the home–sharing industry is booming in today’s society. It’s a
phenomenon that I believe will be around for many years to come and, in my opinion,
Airbnb definitely has the niche in this business. As with any business there are risks.
However, I think the risks are far greater for the hotel industry to dab into this home–
sharing phenomenon.
What Marriot is doing is great for perhaps an elite group of consumers, mostly for those
who are already members. But I don’t think it will pose a threat to Airbnb. For starters,
Airbnb continues to grow with each passing year—it already has 5 million listings on its
site. Secondly, I think it will be more difficult for Marriot to hold up to its standard
business model with home-sharing. The consumers’ expectancy will be valued on what
they receive when they are staying at one of their hotels. This, again in my opinion, puts
limits on the hotel industries.
I think Airbnb will be quite profitable in its IPO announcement. Unlike Uber and Lyft,
Airbnb doesn’t face as many threats of competition. When a consumer needed a ride
and there was no Uber available, they could easily call Lyft or simply catch a cab or use
public transportation. But in the home-sharing industry, the competition isn’t such a
factor. Even with HomeAway, the choices and demand are limited, allowing Airbnb to be
the go-to-choice for home-sharing.
Overall, I think Airbnb has a solid foundation in this home-sharing business and already
has a dominant share of the market. I believe their growth in this industry will be
profitable and that they are up for the challenge of its competitors. Marriott coming into
the home-sharing business is comparable and shows how far the hotel industry has
come but I don’t think it’ll be able to compete with Airbnb.