AIRBNB-Belong anywhere

Airbnb is an American company that provides an online marketplace for lodging, home-stays and vacation rentals .It was founded by Brian Chesky, Joe Gebbia and Nathan Blecharczyk in August 2008 out of San Fransisco, USA.Their founding is traced back to a simple idea to make their rent payment by renting out their home for a big design conference in the Bay Area.They have revolutionised the lodging and hotel industry completely by simply renting out personal homes to verified users at cheaper rates than traditional hotels.The business model was simple and consumers benefitted with larger space while renters received extra income.Airbnb went public in 2020 with an IPO price of 68$ per price and closed with 146$ at the end of the first listed date.

Airbnb currently trades at 100-108$ with a market cap of 66B $.Their success is owed to their strategy and their actively developing app.They have solved a major issue which has allowed them to gain a huge consumer base and also a large number of rental properties.They just act as intermediary and make revenue using commissions from both sides of the transaction.Another revenue stream includes advertisements and transaction based revenue when they charge premiums depending on locations and season.

Uber has a price forecast of 170$ with a high prediction of 250$ and a low prediction of 95$.The median price represents a 64% increase from the last traded price.The remarkable median estimate is attributed to a price return to opening trade levels.They are returning to profitability which is going to positively affect the stock and their enhanced policy for owners on cancellation is another move which has increased rental units by 7% in 3 weeks.

Airbnb is one of the silicon valley giants that has provided a solution for consumers that are willing to spend and given extra income to home owners.In less than 15 years, they have gained a value of almost 100B$ with a high return rate.The journey however has not been as smooth with rental regulations around the world which restrict short term housing rentals to 120 days in a calendar year in Europe, United States and China.They have also been criticised for having racial discrimination by hosts in China which was recently resolved by hiding details of the renters.The biggest advantage that Airbnb provides is a place with characters and wide selection for its renters.In certain areas, they even provide services such as laundry and food to their guests at an additional cost.They are also extremely economical on a sqft basis and provide housing insurance to the guests as well.The only disappointing part for the guests will be differences from the original listing which is an issue that Airbnb sought to resolve by requiring hosts to update photographs at regular intervals.As for the hosts, the main benefit is the income from hosting which at certain times pays for housing mortgages.The hosts get to set their own price and are also covered with a 1000X listing price insurance which provides assurance to the hosts.The only drawback to hosting is laws and regulations and potential damages.Airbnb has also introduced cleaning fees which protect the hosts and ensure that the property is handed at original.Despite this shift in consumers taste from traditional hotels to alternative stays, the business travellers are the ones being left out. The price insensitive groups tend to prefer traditional hotels which has been a big barrier to expansion for Airbnb.With times and businesses rapidly changing, this segment will determine the long term existence of Airbnb.