Answer to Question #205967 in Management for Karim

Question

Question 1: Airbnb, hotels and motel chains competed within the large tourist accommodation market. By 2016 Airbnb had seen immense growth and success. It had expanded to over 190 countries and had more than two million listed properties, and enjoyed a market valuation estimated at $30 billion. However, Airbnb appeared to be disrupting the hotel and tourism industry and was facing resistance, from city officials, owners and operators of Hotels and motels. Local and global businesses criticized Airbnb of their unfair business practices and lobbied lawmakers to force the company to comply with lodging regulations which posed continuing challenges to Airbnb to obtain permits and overcome regulatory barriers A. What are the general strengths and weaknesses of large hotel chains, motels and Airbnb? Explain how you would compare and contrast those businesses.

Answer 1

Some of the strengths of Airbnb include; having unmatched brand strength in the industry of vacation rentals. Also, in its service category it has leadership position contrary to the other players in he industry. However, some of the weakness o the company include the fact that it faces legal issues and developing regulations since the law catches up its platform more often than not.