The term disruption referenced in this blog denotes that Airbnb will be first highlighted as a firm and business model that is disrupting the landscape of hospitality and even housing in general. It can be evidenced in Airbnb’s listings. By mid-2017, Airbnb had 4 million listings in 191 countries across the world and now Airbnb has more listings than the top five major chain of hotels combined.
Perhaps the most intriguing aspect is the fact that many entrepreneurs are looking to replicate Airbnb’s business model. Airbnb’s business strategy is a multi-sided marketplace that connects travelers with hosts and experience providers.
However, what truly distinguishes Airbnb’s economic model is that it is exponential in almost every manner, especially, when compared to a traditional hotel company’s business strategy, such as Marriott – the world’s largest hotel chain. In fact, when you compare the two, you’ll note that Airbnb’s huge innovations in the hospitality business have allowed it to scale hospitality in ways Marriott can only dream of.
RentRoom, a leading Airbnb clone app, lets you in on reasons for business entrepreneurs to follow in the footsteps of Airbnb. Read along to know what makes Airbnb so desirable.
- Successful Rental Business Model:
Airbnb is one of the world’s fastest-growing hospitality businesses, with a market capitalization of over $10 billion after only six years despite the fact that it does not own a single hotel room or even a single bed for that matter.
This two-sided marketplace of guests and hosts has created a whole economy out of vacant rooms and homes, capitalizing on social trends such as moving local, the global recession, and enabling technologies such as mobile, social, and cloud services.
- Connects Mass Market:
Airbnb solves a problem and fulfils many people’s dreams. Simply said, Airbnb’s business model is built for a mass-market. In a unique way, it even unites huge markets of visitors, hosts, and experienced suppliers. Airbnb has established communities of fans for all of its client segments thanks to its rating system and ability to customize experiences.
There was a massive gap between demand and supply of rooms for travelers, which the hotels failed to meet. On the other hand, Airbnb noticed the surplus of vacant homes and rooms across cities and countries and found a unique way to connect the two.
Furthermore, if you’ve ever used Airbnb, you’re presumably aware that it operates entirely online. There are no front desk receptionists or booking agents to contact. You use an app and the internet to search and book bookings, as well as maintain listings and experiences.
Airbnb’s main value proposition is essentially an information-based product because it is a marketplace; as a result, Airbnb’s business model is entirely digital. In actuality, Airbnb just owns the booking software; everything else is provided by other service providers.
- Integrated Scalability:
On the operational side, Airbnb has incorporated scalability into every aspect of its business. Whether it’s negotiating with authorities or building marketing and applications, Airbnb has established systems that allow it to quickly enter new areas in a way that brick-and-mortar hotels can only dream of.
Airbnb’s algorithms, which churn through millions upon millions of stays, guests, hosts, and experiences, are at the heart of it all, pairing the right value propositions with the right individuals making it as scalable as possible.
- User’s Needs First:
Airbnb has demonstrated the importance of understanding consumers’ demands and updating the product in a timely manner to meet those expectations. Early on, the company discovered that getting funds was critical for those renting out their space, so they implemented the advance payments option.
Airbnb, in the like manner, has made timely modifications to its business model by prioritizing consumers, resulting in a highly evolved and failsafe business strategy, which appeals to a multitude of business entrepreneurs.
Airbnb is an example of a company that encourages you to persevere and believe in your product. There is no application that can remain intelligent indefinitely. You must continually improve your product to stay ahead of the competition. You can create a long-lasting app by focusing on the user experience and adding value to your clients.
RentRoom is a full-featured Airbnb clone that incorporates all of the aforementioned characteristics. Partner with us to avoid the hassle of going through complicated and time-consuming processes and enjoy a rewarding business journey.