Blog Post 3

Mini Case Study - Airbnb

An example how a business shows superior innovation in their business model is Airbnb. Firstly Airbnb disrupted the accommodation industry in 2008 allowing anyone to rent out a space in their home for any amount of money. This exploded over the years to come leading them to be the largest single provider of accommodation around the world. 

Once Airbnb gained stability they saw a new area of business which could be changed. ‘Airbnb Experiences’ was born in mid 2017, integrating this service into their accommodation platform. I have spoken about Airbnb experiences in my previous blog entries so I will just link the YouTube video to help you understand their new business model,



A new way Airbnb innovated on the original review system used by firms such as TripAdvisor can be seen through the way Airbnb gave both players in the peer-to-peer business model a voice. 

“Guests can rate the accommodation. This is not new. We have been doing this on TripAdvisor for a long time. But in the peer-to-peer accommodation network the host also gets to rate and review the guest. Now that’s new. Suddenly here's ‘Freddie’ saying his guest ‘Jimmy’ was not much fun to have around the house. In doing that, Freddie affects Jimmy’s ability to ever find accommodation on a peer-to-peer network again. The system rewards good host and good guest behaviour and punishes bad host and bad guest behaviour. Again, this is radically different than anything else in the traditional accommodation market,” Professor Dolnicar explains. (School, U. 2018). 


Adding this important step to the process allowed Airbnb to filter out any bad guests. This system has become very popular as other peer-to-peer firms similar to Airbnb integrating this into their business model. 


Overall Airbnb has changed the way we look for accommodation and in the future I believe Airbnb will be a holistic travel agency offering end-to-end travel. The future is bright for this company.

3b. 'Setting long-term strategic objectives for a website is unrealistic since the rate of change in the marketplace is so rapid'. Discuss. 

Setting long-term strategic objectives will be beneficial for the business no matter what. As discussed with a fellow class mate, websites for basic firms, who use the website as a front cover rather then a functioning e-commerce business may not have to set strategic objects as website technology has stayed quote stagnate. On the other side we looked at businesses who are completely online, selling their services and/or products from their website. Business like this must conduct long-term objective planning to help with market changes and uncontrollable forces in their industry as well as online. 




School, U. (2018). How Airbnb created a new business model – and what you can learn from it Challenging the Future. [online] Available at:–-and-what-you-can-learn-it [Accessed 7 Sep. 2018].