Accor and Airbnb target similar markets however differ substantially in terms of service offerings. Are they truly competitors? Both Bazin and Grémillon unmistakably agree that no, they are not. In fact, they say that both companies complement each other as is evident by the market situation in Paris. Airbnb has over 44,000 apartments in Paris however Accor is also performing exceptionally well. Bazin states that as long as Airbnb users remain true to the initial concept and don't use the platform for industrial or commercial use, Accor will adapt itself to the changing landscape where the core experience is now the client and its emotional response. Airbnb has even sometimes been an inspiration to Accor. Bazin comments further that Airbnb's success can be explained by the 5% annual growth of worldwide travels. Hotels grow at a more modest pace of 2%. One aspect that is fundamentally different between these two companies is their cost of capital. Capital markets seem to value Airbnb based on the volume of travelers and clicks whereas Accor is valued on its earnings and income. Consequently, Airbnb's market cap is superior to Accor's even though Airbnb doesn't own any real estate. This uneven playing field provides Accor with a tremendous challenge as it tries to grow and move as quickly as Airbnb but is held back by its weight. Moving deeper into the subject of just how different these two products and services are: should they be bound by the same regulation as they are offering virtually the same thing? Once again, Bazin and Grémillon agree that no. As they are different products, they cannot be regulated by the same policies. Airbnb hosts file income taxes whereas hospitality firms pay corporate taxes. Bazin also mentions that he has no interest in fighting Airbnb on taxation grounds as long as the company remains true to its original spirit of providing a local stay at home experiences to travelers. From his perspective Accor is a hospitality firm that is trying to embrace a tech dimension whereas Airbnb is a tech firm trying to improve its lodging experience. Get the full story at Hospitality.Net