Case Study:

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.

QUESTION TWO:

Answer the following question using the competitive environment analysis with reference to porter's five force model.

Q2: Suggest recommendations you would make to Airbnb to improve its competitiveness in the accommodation market while mitigating any current and future risks/threats. (20marks)