Essay Example on Developments of Airbnb budget airline and Budget Hotel

With the report there is going to critically evaluate recent product developments of Airbnb budget airline and budget hotel whereby including an analysis of the change in business models from traditional hotels to Airbnb and the impact of this on stakeholders such as hotels and consumers Furthermore it has an evaluation of the changes in consumer demand as new or adapted hospitality products First of all we will discuss about developments of Airbnb As definition of Airbnb founded in August of 2008 and based in San Francisco California Airbnb is a trusted community marketplace for people to list discover and book unique accommodations around the world online or from a mobile phone or tablet Airbnb 2017 In the timeline of Airbnb the initial concept is created by Brian Chesky and Joe Gebbia 

They start the website Airbnb begin to do business in many cities around the world and continued to maintain steady growth In this case of the Airbnb there have been some roles of mediator as recovery satisfaction and word of mouth return intention it suggested that the long term relationship can be developed when their strong trust is established customer satisfaction is found as a dominant direct determinant of repurchase intention by guests in first class and luxury hotels and brand trust is a moderator between them Wilkins et al 2009

Therefore trust affect customers retention behavior In addition Airbnb is becoming a rental mediator it is simultaneously the social network users are using to share their travel experiences and interests on the website Also Airbnb is like acting as the financial mediator Airbnb greatly simplifies the payment process by eliminating the need to deposit process wire transfers or get credit card information For the reasons that we can notice the change of new mediators on the Internet with changing roles of traditional ones For the recent product development as Airbnb the most disruptive business model is the business model of Airbnb It uses a new business model to provide customers a new way of lending their homes and renting homes as changes the way of people utilize their resources and finding the accommodation

Furthermore there are three segments defining of Airbnb's business model such as hosts travelers and freelance photographers As the hosts they can earn some money by renting available space listing their properties on Airbnb and setting their own rent check in and check out times For all key stakeholders such as the travelers they can book available spaces from local hosts by using Airbnb Travelers are searching for a property by filtering them regard to rent location and amenities through the option As freelance photographers they can give the high quality photos to get people attraction and responses they are paid by Airbnb directly

 Airbnb works as an exchange facilitator amongst hosts and travelers who are searching for agreeable settlement at a shabby cost By providing host protection insurance as well as a rating and review system profiles and client audits help to make reputation and trust among members of the commercial center For revenue model of Airbnb using the Airbnb platform for trading customers need to pay for the services they receive from Airbnb One source is the owner s commission If booking via the Airbnb platform a 10 commission will be charged Another source is the traveler s transaction fee which is 3 of the reservation amount In general Airbnb is like a reseller it receives revenue from two customers But Airbnb s wisdom is that it moves the network to a larger customer base for more revenue 

Therefore this acts as an incentive for hosts and guests to use mechanisms to show trust for maximizing the likelihood of a successful booking online reputation system and rapid growth of the Airbnb run up In addition we need to observe the characteristic of Airbnb platform to discuss the pros and cons Based on the above information and background of Airbnb we can analysis it prompted disappearance of intermediaries as emergence of new mediators on the Internet with changing roles of traditional ones Airbnb is minimal regulatory control and listing of local spaces apartments and houses It provided convenience between hosts and travelers who want to make some money and book a space through Airbnb portal as soon as possible

Therefore Airbnb also as a platform it ensured that connect with local hosts and travelers communicate directly It can instead of expensive hotels for travelers to save their money For the safety this is one of the problem they need to face and consider it Airbnb added some additional processes to the model to ensure security For instance it has an approval procedure for each host and voyager that inspires individuals to enroll utilizing online networking records to show signs of improvement comprehension of each other Airbnb has protection arrangements if in case there is something goes wrong