Succeeding in the sharing economy means building a business style based on trust, authenticity, and transparency with your customers. Airbnb has succeeded in the sharing economy thanks to several key factors. First, Airbnb opened up a new type of accommodation by allowing hosts to offer spare rooms or entire houses to potential guests, on a peer-reviewed digital marketplace. Their business is experiencing impressive growth and was recently valued at $30 billion, currently making them the largest hotel group in the world without owning a single hotel. By leveraging the abundant use of smartphones and the continued decrease in technology costs, Airbnb has provided a platform for individuals to instantly share multiple resources. Thus, an owner with an additional room could offer it for rental. The individual can simply register through the platform and start offering the service. The user can therefore rent this space. Then, Airbnb is the intermediary between hosts and guests. This is where the company gets its share of revenue from two different sources. The company charges hosts 11% commission on each booking made through the platform and a percentage of the booking amount as a transaction fee from the guest for each confirmed booking. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get an Original EssayThey also decouple revenue from the considerable operating expenses of traditional hosting companies and provide them with significantly lower operating costs than those of hotels, motels and bed and breakfasts. and breakfasts. Rather than the expenses of owning and operating real estate, Airbnb's expenses were those of a technology company. Airbnb has therefore brought a change in the consumer experience. They believed that guests wanted community and a closer relationship with the host. If hosts help guests live like residents and help them explore lesser-known secret places, guests feel welcome and at home. This is one of the areas where Airbnb blows away its competitors with its meaningful content. Visiting the website and accessing the stories section will allow users to better understand the world of hosts and guests, as well as their stories and experiences. These stories are meant to engage and create an emotional attachment with readers. I would recommend that Airbnb spend more money on research and development to find other ways to expand their business into more than just a bed-sharing app. The company is expected to increase its market share in the sector as it will face an aggressive backlash from its competitors and Airbnb is today more valued than many hotels which are asset-based companies, which currently constitutes an advantage for the company. Airbnb should try to provide more services to its customers than just providing a room because the company should make the customer experience more interesting than that. Airbnb is expected to expand further into other locations around the world to try to cover as many geographies dominated by its competitors. The company's main weakness is ensuring that its customers are in the safest areas and are hosted by the safest hosts. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Personalized Essay It is not.