Airbnb: From Double-Sided Accommodation to Multi-sided Experience Platform?

Thorsten Feix
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Thorsten Feix: Augsburg University of Applied Sciences

Chapter 5 in Valuing Digital Business Designs and Platforms, 2021, pp 225-261 from Springer

Abstract: Abstract Airbnb is today the most popular global online accommodation community. The platform matches travelers seeking authentic experiences with hosts offering unique, inspiring accommodations around the world. Therefore, Airbnb is in its origin a double-sided service platform for home-sharing. The company also became a synonym for the overall sharing economy. But, as the company’s strategy intends to stretch out from an accommodation to a holistic experience platform, the company might even be in a transition stage to a multi-sided platform. Chapter 5 first describes Airbnb’s revolution within the global hospitality industry by introducing its double-sided accommodation rentals platform. Additionally, its tailored 10C Business Design is compared with those of international hotel groups, highlighting the advantages of its asset-light platform architecture. Thereafter, the rentals platform feverish awaited, and spectacular initial public offering (IPO) will be described. With a pop of 114% on its opening share price in day one trading, its IPO became one of the most successful in corporate America’s recent history, giving the rentals platform a market capitalization north of $80 billion. The evaluation of Airbnb’s eight platform value drivers highlights the potential shift from a double-sided accommodation to a multi-sided experience platform. The final financial valuation introduces the picture-of-the-future scenario “the age of connecting and belonging,” before evaluating the accommodation platform with the Reverse DCF approach.

Date: 2021
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DOI: 10.1007/978-3-030-83632-0_5

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