Scribd
Upload
1K views2 pages

Asynch 4

The document discusses Airbnb's business model canvas and how its exponential business model works. It explains the key elements of Airbnb's canvas including its value propositions of "live like a local" and opportunities for hosts to earn income. The document also notes that Airbnb differentiates itself by connecting hosts, travelers, and experience providers globally. To sustain its business, the document recommends that Airbnb ensure accurate property listings and implement strict COVID-19 cleaning protocols to assure customer safety.

Uploaded by

Carla Ulep
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
1K views2 pages

Asynch 4

The document discusses Airbnb's business model canvas and how its exponential business model works. It explains the key elements of Airbnb's canvas including its value propositions of "live like a local" and opportunities for hosts to earn income. The document also notes that Airbnb differentiates itself by connecting hosts, travelers, and experience providers globally. To sustain its business, the document recommends that Airbnb ensure accurate property listings and implement strict COVID-19 cleaning protocols to assure customer safety.

Uploaded by

Carla Ulep
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Ulep, Judycarla Maria V.

CBM 0016-22
BS Biology 2-3 May 13, 2021

Asynchronous Activity #4
“How AirBnB’s Exponential Business Model Works”

Critical Thinking Questions:

1. How would you explain the business model canvas of AirBnB? Please see the canvas.

The business model canvas of Airbnb indeed adapted the idea of an exponential business
model. This company knows how to consistently innovate their services in order to make it more
exponential. Also, Airbnb understands the perfect connection between all of the elements of its business
model (Business Models Inc., n.d.). By observing Airbnb’s canvas, it can be gleaned how simple yet
innovative their business model is. In their key partners, Airbnb builds strategic relationships with
investors and regulators. Their key activities which are essential in the operation of their company are
marketing, maintenance, and rules & regulations. Their brand, host community, and the people are
essential to deliver Airbnb’s value propositions, and these fall under their key resources. Their value
propositions include “live like a local”, “income via apartment”, and “income via events”. These are
what the company is trying to satisfy for their customers. The travelers, hosts, and experience providers
are their customer segments, and Airbnb is trying to build tailored relationships between them through
their channels, such as the website and mobile application. With regards to the cost structure, the
company spends money on operations through: marketing, maintenance, people, and lawyers. Lastly,
Airbnb’s source of cash flows are the booking fees, which is under the revenue streams of the canvas.

2. What makes the AirBnB differentiated? How does the company reflect its uniqueness in its value
proposition? Explain.

Airbnb provides a unique platform for worldwide booking of accommodations. It serves as a


connection between hosts, experience providers, and people who are looking for lodgings during their
trips. Currently, Airbnb includes more than 100,000 cities around the globe (Folger, 2021). In addition
to these, this platform also offers experiences with knowledgeable locals and their interesting tours
(Chetrit, 2018). Its uniqueness in the market is reflected in its value proposition. The “live like a local”
value proposition offers emotional, economic, and functional value to the customers. Customers may
be fond of this service because of sentimental reasons—they get to experience living like a local in that
certain place. On the economic side of this value proposition, customers get to experience a hassle-free,
efficient, and innovative booking system. For the functional value, the services offered by Airbnb is
generally better, more convenient to use, more affordable, and more complete compared to others in
the market. On the other hand, the “income via apartment” and “income via events” value propositions
provide the hosts an opportunity to gain income through this platform. Because of the abovementioned
value propositions, Airbnb is indeed more popular currently to the masses than the hotel bookings.
3. Is there any suggestion/s that you wanted to recommend to AirBnB at this point to sustain its
business? Detail it.

In order for Airbnb to sustain its business, they must focus on solving the following
disadvantages that I have observed from this online platform. First, there is no assurance to the
customers that the property that they will be renting for a short period of time would be as advertised.
Airbnb is not like booking for a hotel that is properly and regularly cleaned and maintained. Airbnb
must always ensure that their participating hosts are truthful to their descriptions in their listings.
Second, potential damages to the property of the hosts are unavoidable. This is why Airbnb must
provide a guarantee to the hosts that their property would be properly taken care of by the customers.
Lastly, since we’re currently in the COVID-19 pandemic, Airbnb must impose strict protocols to their
participating hosts regarding the regular cleaning and disinfections of their properties in order to assure
the customers that they will be renting a safe and secure space.

References

Business Models Inc. (n.d.). How Airbnb’s exponential business model works.
https://www.businessmodelsinc.com/exponential-business-model/airbnb/

Chetrit, S. (2018, March 26). What is Airbnb and Why It’s Better Than Hotels.
https://www.fromlusttilldawn.com/what-is-airbnb-vs-
hotel/#:~:text=Airbnb%20is%20the%20world%27s%20largest%20accommodation%20sharing%
20site.&text=Unlike%20a%20hotel%20though%2C%20an,from%20your%20traditional%20hote
l%20rental.

Folger, J. (2021, January 24). Airbnb: Advantages and Disadvantages. Retrieved May 13, 2021, from
https://www.investopedia.com/articles/personal-finance/032814/pros-and-cons-using-airbnb.asp

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy