4. CASE STUDY: MAXIMIZING
SERVICE VALUE
This research studies the customer behavior in an online
hotel reservation in which a hotel differentiates the same
room service with different sale conditions: (i) Restriction
Condition, (ii) Mild Condition, (iii) Last Minute Condition.
Customers face uncertainty about their plan, and they are
charged with cancellation fee. Customer utility is developed,
and demand function is derived. Then, the optimal prices for
different conditions are determined to maximize hotel's profit
and achieve customer saving. From numerical experiment,
offering three sale conditions, hotel could increase profit 7.6
% compared with offering the restriction and last-minute
conditions, and 6.6% compared with offering the mild and
last-minute conditions. Three sale conditions could generate
an average customer value of 40.26% compared with
offering the mild and last-minute conditions. In addition,
customer saving when cancel the reservation of 34.49%
could be reached when compared with the restriction and
last-minute conditions
5.
6. WHAT IS IT?
•Airbnb is an online community marketplace that
connects people looking to rent their homes with
people who are looking for accommodation.
•Founded in San Francisco in 2008 as a start-up, the
company has become a worldwide booking platform.
•Today it contributes to the movement of more than 60
million people in 192 countries.
AIRBNB: A NEW FORM OF ACCOMMODATION
7. What does it offer?
1. A trusted community marketplace for people to list, discover, and book unique
accommodations around the world.
2. A unique travel experience.
3. A growing community of users. Airbnb defines itself as.
8. •Peer-to-peer accommodation made possible by the exploitation of Web 2.0 internet
technologies.
•Mobile application for both android and iOS.
•To book or rent out a space, one must have an Airbnb profile.
•Hosts and guests can chat and ask questions to each other.
•Hosts have the possibility to accept or deny a reservation.
HOW DOES IT WORK?
9. •Trust between hosts and guests and online reputation is fostered through a system based on
reviews, recommendations and ratings.
•The system gives an incentive to both parties to behave in an acceptable manner.
•Payments are made through the website and Airbnb earns revenues for the service offered.
HOW DOES IT WORK?
10.
11. Let Air BnB book PIA flights (local and international) through its app.
Air BnB receives 0.5% of every flight booked through Air BnB
Customers can book a flight and place to live all in one place.
OUR PROPOSAL
12. WHAT’S IN IT FOR PIA?
Customers can book PIA flights and a place to live directly through the Air BnB application or
online.
They can enter PIA’s PNR code and avail discounts.
Special discounts for flight crew members instead of expensive hotels.
