Scott Hong Sharing Economy PDF

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Name: Scott Hong Sharing Economy Company Selected: Airbnb Traditional Industry Sector Name: Lodging Marketing Concept

Similarities

Differences

Product

•Both Airbnb and traditional hotels like Hyatt/Marriot provide hospitality for its customers. •Both companies’ product depends heavily on property, location, and availability.

•The biggest difference between Airbnb and other hotels is the fact that the company does not own any property that it rents out to its customers. Hotels own their property (land, buildings, etc.), and offer those to its customers. •Airbnb offers essentially a dualpurpose online platform for both individuals with property to hosts people, and those looking for a convenient place to stay during their visit. This makes the range of products Airbnb can offer greater than hotels. •However, hotels in the industry have more amenities and services options provided to their customers like 24-hour room service and cleaning.

Price

•Both Airbnb and traditional hotels charge their customers with a designated price for

•Unlike traditional hotels who earn their revenue by directly charging its customers, Airbnb

Name: Scott Hong Sharing Economy Company Selected: Airbnb Traditional Industry Sector Name: Lodging Marketing Concept

Similarities

Differences

their stay. does not charge for its •Prices vary depending services offered to the on the space’s travelers directly. location, consumers’ •Instead, Airbnb demand for stay, and charges a 3% fee on availability for stay at each reservation made the time. to its hosts. These •Prices tend to be hosts have full control higher in metropolitan over determining the areas, tourist spots, price for stay. and during •Due to this unique pricing/revenue model holidays/vacation by Airbnb, its price seasons. point tends to be slightly lower than other hospitality companies in the industry as it up to the hosts themselves to set the price for reservation. Place

•Both Airbnb and •Hotels tend to be located in major traditional hotels have metropolitan areas at a strong presence the best location with throughout the world. great views and •Almost everywhere convenience. one goes in the world, •Although Airbnb they will be able to cannot offer the same find either an Airbnb type of prestige that or a hotel to stay at. some traditional hotels can provide with its location, because Airbnb services are offered to regular property owners across the world, the company is

Name: Scott Hong Sharing Economy Company Selected: Airbnb Traditional Industry Sector Name: Lodging Marketing Concept

Similarities

Differences able to a provide its services in a wider range of locations. •If staying at the center of the city is a bit pricey for Airbnb’s customers, they can always find a place to stay for a lower price in a suburban location. •Traditional hotels don’t have this type of flexibility with its locations.

Promotion

•Both Airbnb and traditional hotels use various marketing strategies to attract their customers. •These marketing campaigns are often done through TV ads and social media platforms like Facebook, Instagram, Twitter, YouTube, Google, etc.

•Traditional hotels utilize their ads and marketing campaigns to sell the amazing experience, comfort, convenience, and services their customers will enjoy during their stay. These companies work to reach a more general group of customers who are traveling. •However, Airbnb differentiates itself against others in the industry with its marketing campaigns that contain the value proposition of “living like a local.” •To really sell this

Name: Scott Hong Sharing Economy Company Selected: Airbnb Traditional Industry Sector Name: Lodging Marketing Concept

Similarities

Differences message effectively, Airbnb uses a geolocalized strategy for its promotions to create content relevant to a particular location. This allows them to reach a more niche group of customers who are seeking to deviate from a traditional travel experience....