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I cannot see anything that costs $13 billion in that company. I am probably bad at pricing.

by CmonDev 12y ago

rmsaksida 12y ago
Same here. Aside from taking care of transactions, which is easy to imitate, I don't see what sets Airbnb apart from other vacation rental websites. They are not fundamentally different. Yes, they have a large userbase, but that's easily threatenable considering their fees and lack of distinction. I must be missing something.
- troels 12y ago
  I think you severely underestimate how important it is to have a monopoly on the market. FB's main asset is also its userbase, so by that reasoning they are easy to emulate. It's not that people haven't tried that, but it doesn't work.
  - rmsaksida 12y ago
    Facebook is a free website, and it has massive technical advantages over all its competitors. It's integrated everywhere, the feature set is incredible, and it basically dictates our model of online social networks. Airbnb ultimately depends on how much renters, and indirectly seekers, are willing to pay. Its brand is not as well established as Facebook's (at least in my country). If a compelling alternative came up with lower fees, what would that mean to Airbnb? I'm not sold yet on its permanence.
    - mattmanser 12y ago
      The brand is well established, and outside the US too. Here in the UK Airbnb passes the random friend check, random non-techies know what it is and have used it. In fact I'm often surprised by the people that have.
- icebraining 12y ago
  Doesn't that description fit eBay? Yet it has a $60B market cap.
- smackfu 12y ago
  A website like this lives and dies on their inventory more then their userbase. AirBnB doesn't have a listing fee, which differentiated them from traditional vacation rental places like VRBO. How is a competitor going to get a competitive inventory?
  - anon1385 12y ago
    By being cheaper and by doing what AirBNB did - scrapping and spamming.
  - rokhayakebe 12y ago
    http://www.vrbo.com/info/list-your-property http://www.vrbo.com/info/list-your-property? I think their pricing is similar to ABB Also Homeway has a large inventory, I believe, but a lower market cap: 3B vs 10B.
    - smackfu 12y ago
      Interesting, VRBO definitely changed their pricing model recently. It used to only be the $350 upfront type, so it only made sense for actual vacation homes. I know a lot of people were dual listing their VRBO places on Airbnb (because Airbnb is free), and I bet VRBO was not getting the renewal numbers they wanted.
- prostoalex 12y ago
  > I don't see what sets Airbnb apart from other vacation rental websites I think their innovation was allowing shared housing and generally any quirky property. HomeAway and VRBO focused their efforts on professionally managed second homes and vacation properties. By now the network effect has kicked in, and any newcomer would have to convince buyers they're relatively reliable and scam-free.

I cannot see anything that costs $13 billion in that company. I am probably bad at pricing.

by CmonDev 12y ago

I cannot see anything that costs $13 billion in that company. I am probably bad at pricing.

Same here. Aside from taking care of transactions, which is easy to imitate, I don't see what sets Airbnb apart from other vacation rental websites. They are not fundamentally different. Yes, they have a large userbase, but that's easily threatenable considering their fees and lack of distinction. I must be missing something.

troels 12y ago
I think you severely underestimate how important it is to have a monopoly on the market. FB's main asset is also its userbase, so by that reasoning they are easy to emulate. It's not that people haven't tried that, but it doesn't work.
- rmsaksida 12y ago
  Facebook is a free website, and it has massive technical advantages over all its competitors. It's integrated everywhere, the feature set is incredible, and it basically dictates our model of online social networks. Airbnb ultimately depends on how much renters, and indirectly seekers, are willing to pay. Its brand is not as well established as Facebook's (at least in my country). If a compelling alternative came up with lower fees, what would that mean to Airbnb? I'm not sold yet on its permanence.
  - mattmanser 12y ago
    The brand is well established, and outside the US too. Here in the UK Airbnb passes the random friend check, random non-techies know what it is and have used it. In fact I'm often surprised by the people that have.
icebraining 12y ago
Doesn't that description fit eBay? Yet it has a $60B market cap.
smackfu 12y ago
A website like this lives and dies on their inventory more then their userbase. AirBnB doesn't have a listing fee, which differentiated them from traditional vacation rental places like VRBO. How is a competitor going to get a competitive inventory?
- anon1385 12y ago
  By being cheaper and by doing what AirBNB did - scrapping and spamming.
- rokhayakebe 12y ago
  http://www.vrbo.com/info/list-your-property http://www.vrbo.com/info/list-your-property? I think their pricing is similar to ABB Also Homeway has a large inventory, I believe, but a lower market cap: 3B vs 10B.
  - smackfu 12y ago
    Interesting, VRBO definitely changed their pricing model recently. It used to only be the $350 upfront type, so it only made sense for actual vacation homes. I know a lot of people were dual listing their VRBO places on Airbnb (because Airbnb is free), and I bet VRBO was not getting the renewal numbers they wanted.
prostoalex 12y ago
> I don't see what sets Airbnb apart from other vacation rental websites I think their innovation was allowing shared housing and generally any quirky property. HomeAway and VRBO focused their efforts on professionally managed second homes and vacation properties. By now the network effect has kicked in, and any newcomer would have to convince buyers they're relatively reliable and scam-free.