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Ahead of IPO, Airbnb achieves profitability for second year in a row

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Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#191

Post by speedplane »

baddox wrote: post #188
speedplane wrote: post #187

Earlier quoted context omitted.

> I would guess that you’re much likelier to be a victim of theft at a hotel than at a residential [AirBnB] home This seems like a made up guess, hotels have security and 24x7 surveillance and staffing. Further, at a hotel, there are folks you can turn to. AirBnB's service department is invisible. AirBnB's online complaint process feels more like a trial which places the burden of proof on the customer, rather than a…

It is absolutely a guess. I can’t find any statistics. Hotels feel less safe to me because by definition there are many parties who have access to your room.

Hotels feel more safe to me because there is a clear chain of responsibility and accountability. AirBnB is a thousand miles away and can only guess what actually happens at their properties.

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#192

Post by venantius »

gringoDan wrote: post #43

They're often considered similar businesses, but intuitively it seems to me that, long-term, Airbnb will be valued higher than Uber and other ridesharing companies. Home rentals seem to be simpler market to operate in than coordinating real-time supply and demand between drivers & riders. Additionally, Uber seems to be facing issues on the driver side of the business - they have a $650 driver acquisition cost & a 12%…

The main thing is that Airbnb has a global economy of scale - having more hosts in Japan actually does benefit their guests who reside in New York year-round. Competitors to Airbnb similarly must achieve global scale in order to compete in a serious way. There are one or two meaningful exceptions (China, possibly the US domestic market), but essentially any Airbnb competitor must achieve global scale in order to be a serious threat.

By contrast, Uber has to fight to win each city, and most of its users will use Uber for the most part within that city. Adding more drivers to Tokyo does not have a meaningful impact on the resident of New York.

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#193

Post by Arnt »

baddox wrote: post #189
nafey wrote: post #186

Earlier quoted context omitted.

What causes that impression? The average hotel is more secure than average house.

What makes you think that? By definition, there are several parties who have access to the rooms in a hotel.

To the door, you mean.

To break into an apartment, walk up to the street door, ring any neighbour's doorbell and say the name of any company that delivers parcels, newspapers or advertising in that area.

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#194

Post by hawaiianbrah »

venantius wrote: post #192
gringoDan wrote: post #43

They're often considered similar businesses, but intuitively it seems to me that, long-term, Airbnb will be valued higher than Uber and other ridesharing companies. Home rentals seem to be simpler market to operate in than coordinating real-time supply and demand between drivers & riders. Additionally, Uber seems to be facing issues on the driver side of the business - they have a $650 driver acquisition cost & a 12%…

The main thing is that Airbnb has a global economy of scale - having more hosts in Japan actually does benefit their guests who reside in New York year-round. Competitors to Airbnb similarly must achieve global scale in order to compete in a serious way. There are one or two meaningful exceptions (China, possibly the US domestic market), but essentially any Airbnb competitor must achieve global scale in order to be a…

Why not? A New Yorker who visits Japan needs a ride around town as much as they need housing? Ok, maybe not quite as much. But they do benefit.

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#195

Post by distances »

briandear wrote: post #177
conanbatt wrote: post #57

Earlier quoted context omitted.

What im not sure about is Airbnb's moat. They have a great brand name and all, but their service is very limited: 15% is a very large cut to take on these transactions. What prevents another company from doing the same at 12% and costing 50% to operate?

15% is a small cut. Ever sold inventory on Booking.com or Expedia? It’s a lot more than 15%. Plus AirBnB actually collects the money for you and you are paid on the day of check in. I own a small hotel in France and AirBnB is far more profitable and easy to use than Booking or Expedia. The marketing value alone is worth far more than 15% — but that 15 also includes credit card fees as well. It’s a great deal.

Interesting, are there also hotels in AirBnb now? In Europe I most of the time end up with Booking.com even though I regularly check AirBnb too -- if the prices are close to each other (as they surprisingly often are), I'll always go with a hotel.

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#196

Post by rkul »

Zimahl wrote: post #92
longerthoughts wrote: post #72

Earlier quoted context omitted.

> they ignore regulations and simply extract wealth out of our communities Can you elaborate on this?

I'm not the person you are asking but I'll lay out how I understand this argument from what I've read about the housing market in Portland, OR, which has a big housing crisis right now. Available housing, apartments, condos, etc, is being eaten up by short-term renters. The price of short-term rentals are more expensive than long-term rentals, but due to so much inventory not being free for long-term rentals, the pri…

Ditto for Prague

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#197

Post by anon269736 »

Gustomaximus wrote: post #176
warp_factor wrote: post #113

I'm a regular user of Airbnbs AND hotels. I usually prefer staying in hotels and will look for Airbnb only as a second choice. Reasons are: - Price is usually higher on Airbnb. - Airbnb crazy fees for multiple people, cleaning scam, outrageous service fees etc. - Inconvenience to not have a 24H reception where I can get my keys. The real genius of Airbnb is that they convinced a lot of people that they shouldn't look…

I think the other thing with Airbnb vs hotels; 1) I find with Airbnb I'm more likely to get lower quality from expectations to what is received. 2) Hotels are better are redressing issues whereas AirBnB doesn't seem to care, and you can't really say to Airbnb I want another room type thing on the spot either. 3) For price, I think it's cheaper for groups most of the time. When traveling alone for work I'd say I use i…

I completely agree with you. Especially on point 1 and 2. I've had 2 negative experiences with Airbnb, and I can say that it would never have happened at a hotel.

- The first one had a host cancelling a week before my trip. It was a long expected Christmas trip, and I had booked well in advance. Airbnb offered a $30 voucher on their platform, but there was no more availability in the city, so we had to pay a hotel for three times the initial price, the voucher expired before we could use it.

- The second one had a room in very bad conditions. We decided to get a hotel and quickly found something much nicer for half the price. We notified the host that we would not stay, but since we were backpacking abroad it was very hard to contest anything with Airbnb. Ultimately we still payed the full price of our Airbnb booking.

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#198

Post by distances »

briandear wrote: post #179
parent5446 wrote: post #158

Earlier quoted context omitted.

Good hotel still have pools, can be located outside of downtown, and sometimes even in-room kitchens (if that's what you want). They also have maid service, room service, and a front desk. The only advantage you get from an AirBnB is a unique facade, paired with having to clean up after yourself and possible fire and health code violations.

Good hotels also overcharge for parking, have slow, sketchy WiFi, charge $10 for a bottle of water and every person you encounter requires a gratuity. I like hotels but they can be annoying and everything in the hotel is overpriced and designed to squeeze your wallet. There is no excuse for a bottle of water that costs $10 when the same bottle at the 7-11 outside sells it for $1.99. Even worse are hotels that charge…

This really depends. I mostly travel in Europe:

* Always with public transport, no parking needed * I've never tipped anyone in a hotel * EU roaming is free, no need for wifi * Fill the minifridge with my own beverages

All the AirBnbs I've stayed at have been somewhat sketchy, while this rarely happens with a hotel. Furthermore, I know hotels are fully legal and won't cancel my booking.

AirBnb is a clear winner when traveling with a small group though, as a multi-bed apartment is a better holiday experience and much cheaper than multiple hotel rooms.

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#199

Post by lordnacho »

hawaiianbrah wrote: post #194
venantius wrote: post #192

Earlier quoted context omitted.

The main thing is that Airbnb has a global economy of scale - having more hosts in Japan actually does benefit their guests who reside in New York year-round. Competitors to Airbnb similarly must achieve global scale in order to compete in a serious way. There are one or two meaningful exceptions (China, possibly the US domestic market), but essentially any Airbnb competitor must achieve global scale in order to be a…

Why not? A New Yorker who visits Japan needs a ride around town as much as they need housing? Ok, maybe not quite as much. But they do benefit.

But the New Yorker knows that AirBNB is the place to find their place in Tokyo, with few non-hotel alternatives. When you got to Tokyo, even if you don't have Uber installed, you will find a cab.

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#200

Post by thelastbender12 »

hawaiianbrah wrote: post #194
venantius wrote: post #192

Earlier quoted context omitted.

The main thing is that Airbnb has a global economy of scale - having more hosts in Japan actually does benefit their guests who reside in New York year-round. Competitors to Airbnb similarly must achieve global scale in order to compete in a serious way. There are one or two meaningful exceptions (China, possibly the US domestic market), but essentially any Airbnb competitor must achieve global scale in order to be a…

Why not? A New Yorker who visits Japan needs a ride around town as much as they need housing? Ok, maybe not quite as much. But they do benefit.

That is a good point. But presumably most of Uber's revenue comes from the residents of a city who are in town most of the time. Opening up in a new city doesn't benefit Uber as much as it does Airbnb where all properties are accessible options to all of its users.
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