AIR BNBBUSINESS ENVIORMENT ANALYSIS

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.

SWOT ANALYSISSTRENGTHS

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

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

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

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

porters five forces Bargaining power of buyers

Bargaining power of suppliers

Threat of new entrants

Threats of substitute products or services

Competitive rivalry

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