E-BusinessGroup Final Project and Presentation

Tuesday Session: 16:30 pm – 19:30 pm

Tourism and Hotel SectorAirbnb

GROUP 2Pablo Castaneda

Clara GilletGiovanni Hourlier

Laura BalTess Rimoux

Felipa Agbaba

SUMMARY

1. Size and importance of the market globally, in Europe and in France2. How the sector has traditionally worked3. The effect of the Internet on the sector4. Who the major global players are and Major player chosen5. E-business models being used by the major player 6. Consumer reaction to e-business in the sector7. Future development of the sector driven by E-business

I. SIZE AND IMPORTANCE OF

THE MARKET

Globally One Billion tourist

arrivals each year

Europe World’s most visited regional

destination Increase of 5% in international

tourist arrivals

France World’s leading destination with

83.7 million tourists in 2014 Led to 2 million jobs and 7% of

GDP growth It is a strategic sector for the

French economy

II. HOW THE SECTOR HAS

TRADITIONALLY WORKED

Most used mechanism of accommodation: Hotels.

- Seasonal house rental- All inclusive Resorts

Share Economy: Airbnb

III. THE EFFECT OF THE

INTERNET ON THE SECTOR

Possibility of Expansion

Data transfer Flexibility

New booking systems New business models Organization and

distribution costs are decreased

New intermediaries Traditional roles

have to be changed

Higher quality Effective market

research Industrial growth

IV. WHO ARE THE MAJOR

GLOBAL PLAYERS

V. E-BUSINESS MODELS BEING USED BY THE

MAJOR PLAYER

VI. CONSUMER REACTION TO E-BUSINESS IN THE

SECTOR

VII. FUTURE DEVELOPMENT OF

THE SECTOR DRIVEN BY E-

BUSINESS

OPPORTUNITIES

New business model opportunities

New alliances New offers in

terms of accommodation

Sharing economy

Data transfer Flexibility

Collaboration Allows using

and sharing resources without

possessing them

Lower operation costs

Better prices for consumers

Revenue generation for local hosts

Growth potential Economic

benefit: boost tourism in underexplored areas

Enhancement of better quality

LIMITATIONS

Legal Environment Taxes Information

CHALLENGES FOR AIRBNB

TRUST

- As the number of users grow, trust remains an issue

despite the provision of insurance

REGULATIONS

- Introduction of laws to regulate the renting and

accommodation business- Taxes

TRAVELER RETENTION

- Provides offers, promotional codes and

credits to travelers as well as hosts

IMITATORS

- Local imitators could have already adjusted the

business model and established a first-comer

advantage locally

THANK YOU FOR YOUR ATTENTION

BIBLIOGRAPHY AND REFERENCES

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• ALI, Rafat. “Airbnb’s Revenues Will Cross Half Billion Mark in 2015, Analysts Estimate”. Skift (25/03/2015). Obtained from http://skift.com/2015/03/25/airbnbs-revenues-will-cross-half-billion-mark-in-2015-analysts-estimate/

• KIM, W. Chan. “Blue Ocean Strategy”. INSEAD Blue Ocean Strategy. Obtained form https://www.blueoceanstrategy.com/about-the-authors/w-chan-kim/• RIES, Eric. “The lean start up”. Obtained from http://theleanstartup.com/ • BAZIN, Sébastien & GREMILLON, Olivier. “Mardis de L’ESSEC: Accord & AirBnB”. Evénement ESSEC Alumni.(24/03/2015). Obtained from

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