How Airbnb disrupts the hotel industry and how we can react Home away from home How Airbnb disrupts the hotel industry and how we can react Bart van Campenhout Jassu Hermans Asiya Suleimanova Julie Wijmans

Mandate Warm welcome to the board of Bonaventure hotels! We are Nyenrode Business Consultancy, Here to present to you today a strategy for AirBNB’s disruption of the hotel industry.

agenda The situation: the traditional hotel industry The disruption: Airbnb Downsides of Airbnb Counter the disruption Analysis Conclusion

The situation – before Traditional hotel industry High labor intensity Big dominant position of hotel chains Similar customer value propositions Relatively high priced No personalized experience Tied to a location due to high initial investment

The disruption - Airbnb Utilizing unused sleeping places Enabling people to rent out their spare rooms and apartments Putting unique sleeping experiences on the market Direct competitor of hotel industry

DOWNSIDES OF AIRBNB Getting the key is often a hassle Level of discomfort when the tenant is in Level of distrust because the renters may take things No consistency in quality No quality/cleanliness checks besides prior reviewers Expensive cleaning costs Less reliable for business travelers Less desired by baby boomers as they are often stuck to traditional idea of a hotel

Instead of sleeping in someone else’s room, why not make sleeping in an hotel like sleeping in your home?

The counter reaction Key Hassle Discomfort of strangers Distrust of guests Quality inconsistency Cleaning costs Business travelers Baby boomers Walk-in check-in Hotel room privacy Covered by insurance policy Standard rooms, personalized to your wishes Incorporated in the room price Their needs match above needs They book a traditional hotel

HOW IS THIS DIFFERENT THAN TRADITIONAL HOTELS?

Red ocean Blue ocean The market is oversaturated Fierce competition Similar business models competing solely on price No customer loyalty Focuses on the niche market Makes the competition irrelevant Value proposition based on delivering experience People are willing to pay premium for an experience

What industry factors can be reduced well below industry’s standards? Eliminate: What industry factors can be eliminated? Raise: What industry factors can be raised well above industry’s standards? Create: What industry factors can be created?

Counter the disruption Reduce Room types Endless halls Eliminate Reception Idle personal Raise Quality of the in-room entertainment Service speed Create 1 minute self check in and 2 minute check-out kiosks Prefabricated standard rooms Modular building techniques Blue Ocean RREC grid

Status quo Multiple room size options 20-30% of the room size is barely used by guests Inefficient lobby areas Reception staff is idle during non-arrival and check- out periods

Now vs disruption Junior suite Senior suite Unutilized space Reception area Standard room Standard room Standard room Shared lobby/co-working space Simple room Simple room Junior suite Standard room Standard room Standard room Senior suite Standard room Standard room Standard room Endless halls and lobby area Unutilized space Same space, but more customers served

Hey Mark, welcome back! Persona Mark Shneider 37 year old architect from Berlin Considers himself a business nomad Travels 30% of the year Loves techno music, good steak Time conscious, hates waiting of any form

the most personalized hotel experience: bon Aventura 2.0 1. 2. 3. 4. 5. 6. 1. Booking > seamless voice experience 2. Taxi ordered to welcome you after you have landed 3. Room number pops up on your mobile app 7. Open the room with your phone 8. Room (light, temperature, music, series) is customized to your choice 4. Next day you have the chance to connect with like-minded bon Aventura 2.0 residents 5. Curated restaurant and other leisure recommendations based on your social media usage 6. Hotel app connecting travelers with local community

Conclusion Take Bonaventure hotels to the next level by personalized experiences for hotel guests!