BNBHero
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Contents
Background
Links
bnbhero hongkong facebook page
Background
BnBHero act as a two-sided marketplace platform that monitors and connects individuals deals directly with other individuals on lodging.
In a normal business transaction, owners of apartments will publish their apartments on BnBHero's online platform and potential travelers that visit the region of the owner will book their stay with the owners. BnBhero earn a cut from this successful transaction.
BnBHero is like an AirBnB business in Korea. They deal with the inbound tourist stay in their respective markets. this is a lucrative market that has alot of potential to improve the current lodging industry. As of 24/3/2014, AirBnB valuation soar to USD 10 billion which is a huge amount for a startup in this collaborative consumption business.
After Seoul City declared itself a “sharing city”, BnBhero was recognized as the first sharing company of Korea
"Collaborative consumption model"
Since the middle of the 21st century, economic prosperity has been equated with a consumerism society with ownership at its core. But in today’s globalized and connected world, this view of the world is beginning to change. The abundance of assets along with the relative affordability of almost anything, high-tech consumer platforms, the digitisation of products, close-knit social media communities and the economic downturn of 2008 have all meant that collaborative consumption is flourishing. This collaborative consumption AKA Sharing Economy is a socio-economic system built around the sharing of human and physical assets.
Company Business Model
- Heavily focused on America and Europe
- Gap in Asia
- Requires local knowledge and localised business capabilities
- Build strong host-guest networks in Asia
Major "sharing economy" players are heavily focusing on America and Europe. Gap in Asia
- Asian Market and its consumers have unique and different characteristics from the West.
It also requires local knowledge and localized business capabilities
- Good potential to make a success if we build strong host-guest networks in Asian
Company team
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It all started when 2 entrepreneurs-to-be met in Singapore. Both Koreans happened to stay in the same condominium. They started discussing about an idea of shared-accommodation collaborative business. Minsoung (CEO) went back to Korea to form his A team and got Youngsoon On Board after their main team has been formed.
All founding team members have something in common. – All of them quit their full time jobs in big firms and companies and have an average age of about 40 years old. And love travelling and wanted to have something that they can call their own (company).
They also have a unique team culture – strict 9 hours working policy.They want to work hard for 9 hours every day and spend the rest of their time can be with their families.They also do not work on weekends as weekends are reserved for their family and personal time.
Company Financials
BnBHero's market investment outlook
Evaluating the market potential of the tourism industry, we realized that the biggest market segment is indeed from Asia Pacific and that Chinese are the ones that have the most inflow of tourist traffic into Korea. Out of which, they are also the largest in number of international students staying in Korea. From here, we believe that BnBHero can focus their attention on the Chinese tourst
Current Market Segment
- Inbound Asian Tourists - 80% of inbound tourists are from other Asian countries
- Interested in Korean Culture - Asians are interested with Korean culture and many of them are looking for cultural experience opportunities in localized settings rather than just commercial accommodation.
- Wants cheaper alternative to hotels
- Prefers interaction with Korean Hosts-Strong relationship with Korean hosts would enable tailored customer service in their language
- Tech Savvy customers that uses e-commerce
What does BnBHero's Financials say?
BnBhero is a startup that is based upon traffic flow within the website and revenue is derived from the transaction on a daily basis.
Challenges
Technical Challenges : Initial portal that was outsourced at the start was not up to standard
Current challenges: Dealing with competitor + entering the Asia Pacific Market In the initial stage, BnBhero do not have the right website to serve the needs of building an ecommerce website .Developer was outsourced to third parties. Then it was not up to expectations of the Team. Thankfully they had one partners with engineering background that assisted with the revamp of their website. their website is currently running smoothly thanks to the correct acquisition of technological talent into the team.
Analysis
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Recommendations
- Social media campaign to raise awareness on “Collaborative Consumption” model
- Targeting incoming international students in the university areas
- Better translation for Chinese Mandarin
- Establish more “Guan Xi” with Chinese businesses and government
