Airbnb's success is attributed to its simple business model. It does not own properties but operates in the sharing economy by offering services for short-term lodging. The business model is designed to connect a mass market in a unique way, creating a community of hosts, travelers, renters, guests, property managers, and experience providers. Airbnb is a multi-sided platform serving both guests and hosts.
Airbnb makes money primarily through booking fees charged to hosts. The platform's core value proposition is information-based, functioning as a marketplace for short-term rental space, experiences, and adventures.
The model includes scalability, efficient entry into new markets, and a reliance on algorithms to match value propositions with the right people. Investments focus on technologies, insurance, human capital, and marketing.
OYO initially started as a hotel aggregator but shifted to a franchise model. This involves partnering with hotels, renovating them to meet OYO's standards, and selling rooms under its branding. This model emphasizes standardized hospitality services and user experience over just room availability and pricing.
OYO generates revenue through various means: