FORTUNE INSTITUE OF INTERNATIONAL BUSINESS

BATCH 2018-20
BUSINESS DEVELOPMENT, SELLING & NEGOTIATION
CASE ANALYSIS OF AIRBNB

Submitted by- Submitted To-

Soumya Singh Dr. Sudhir Rana
Roll no- 120
Que-1 Air Bnb business model? Who are its
customers and what customer are looking for?

Airbnb has sharing economy model which believes in more sharing

and less in buying and cash.

Follows the quick way to get transaction done.

Customers of Air Bnb are-

 The leisure Travellers
 The Host which includes owners or renters who are willing to rent
out their places.

Consumer wants from their stay -

 A local experience
 Health and Safety
 More space, less money
 Pampering
 Amenities
  Services

Que-2 What metrics indicate that their business is

working?

Two high-level metrics that measure success are:

Monthly bookings of Experiences activities

Revenue from monthly bookings

Que-3 Who are potential competitors and what are

the threats of Air Bnb?
Potential competitors of Airbnb are-

 Tripping.com
 Home to Go
 Flipkey
 HomeAway
 VRBO
 HouseTrip
 VayStays
 VacayHero
 Luxury Retreats
 Wimdu

Threats of Airbnb are as follows-

Airbnb services are functional in more than 192 counties. Every

State and country has its own laws and regulations to comply with.
The company has no option but to rely on guests and hosts to
meet the local laws.

The company is already facing lawsuits and fines throughout the

world.
 Competitors are growing out there, for example, tripping.com,
FlipKey, VRBO, Wimdu and many more. In future, these
competitors can give Airbnb a tough time.

Que-4 What are the difference between OYO and

Air Bnb?

OYO has more hotel rooms whereas Airbnb has more residential
plots.

In Airbnb, the apartment may have been misinterpreted, not so in

case of OYO as an audit is done every week.

The host might be unreachable, but it won’t be the case in OYO.

Calendar bookings can be wrong but in OYO once booked it is

finalized.

Host cancellation last minute is not in the case of OYO as they

have already booked the hotel rooms under OYO brand.

Airbnb doesn’t do a full background check, so, security and safety

are an issue but no so in OYO.