Question

What key factors may determine the success of Airbnb?

Answer 1

Airbnb is one of a kind company, that provides an online platform to the hosts and travelers for meeting the accommodation needs. The company doesn't own any hotel or rooms, but rather helps the travelers find rooms on rents by letting them select the hosts who provide rooms at low prices. Airbnb came up with a very unique concept and an outstanding business model to help the travelers, as well as hosts, by providing them a digital platform that acts as a mediator.

The success factors of Airbnb are as follows:

* Accommodation: Airbnb helps the travelers get rooms by exposing them to various hosts, and help them meet theri accommodation needs. They charge commission on every booking, as well as on confirmation. This concept of commission and fees leveraged greatest revenue to the company.

* Online/digital platform: Airbnb used technology to its advantage, and designed a website as well as an application that is easy to use anywhere, anytime. Accessibility to its platform on mobile devices helped the hosts to list their rooms and travelers to book the rooms, based on their budget.

* Investment in technology rather than in physical assets. Airbnb invested in technology and use of internet to undertake it's business.

* Quality services to the customers, with a focus on the interest of both the travelers and hosts.

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