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Airbnb

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by

Leigh Ix

on 23 May 2015

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Transcript of Airbnb

Targeting - the selection and marketing to a set of customers who share common needs
Niche Marketing ->
to the adventurous community, those who seek a unique stay at others' homes, or to have others stay at theirs
Airbnb
History
Operational Success
New sources of supply
New user behaviors (demand side)
Strong curation mecanisms
Voted Best Company of the Year 2014
3. Content Marketing Strategy
Airbnb Neighborhoods
Went live in 2012
Touristic guide for major cities around the world.
When it was launched only included 7 cities, now includes 21 cities around the globe.
Allows customer to familiarize with a city from the perspective of professional tour guides and locals.
Marketing Strategies
1. Global Marketing
Airbnb launches first global ad campaign (2014)
Campaign launched in 9 countries
Ad links back to microsites that allow clients to pursue listings in native language.
Unique accommodations
Airbnb
34,000+ cities
190+ countries
25,000,000+ guests
1,000,000+ listings
Value Proposition
Airbnb saw the home as an underutilized asset and now provides an international platform that is easy to use and has acquired trust that offers value to both sides of the market.
“Airbnb is the easiest way for people to monetize their extra space and showcase it to an audience of millions.”
Focus on quality and trust
Belong Together: "It’s a symbol for people who want to welcome into their home new experiences, new cultures, and new conversations." - Brian Chesky

Four P's
Product
Place
Promotion
#BelongAnywhere
#OneLessStranger
Online marketplace
Quality control
Public relations & quick crisis management
Warren Buffet's child home
Disaster response
2. Belong Anywhere Campaign
Launched with Wall and Chain ad
"content has always been at the heart of our marketing activities. We strongly believe in the power of good storytelling, and in recent months we have evolved our strategy to place the focus on our community" - Dennis Goedegebuure
Price
All transactions take place through Airbnb:
Guests pay Airbnb when they book
Airbnb releases the money to hosts 24 hours after guest checks in
Host service fee: 3%
Guest service fee: 6-18%
Value Added Tax (VAT) depending on location
How does it compare to a hotel room for the guest?
How does it compare to a long term rental for the host?
5. Social Media
strong presence on main social media platforms such as Facebook, twitter and instagram
Social media history when it released the world’s first crowdsourced Vine
Theme was “travel, adventure and finding your place in the world.”
4. Content Marketing Strategy Pt. II
Airbnb Stories
Sheds more focus on the community.
Allows hosts and travelers to share their stories
1) Market Segmentation
2) Target Customers
3) Environment & Competition
4) Positioning
Market Segmentation
Those seeking...
Discussion Questions
Vacation: a unique way to stay. "A castle for a week"
Business: autonomy and comfort valued by businessmen and women. "An apartment for a night"
Extended travel: flexible residences with no binding contracts. "A villa for a month"
How could Airbnb further disrupt the travel industry? What features could they add to their product?
What value proposition category do you think Airbnb falls under? (More for more, more for less, less for more, etc.)
Why haven't competitors been able to seriously challenge Aibnb?
What weaknesses could other companies exploit about Airbnb?
How could legality pose a threat to Airbnb? How might this be similar to Uber's situation?

Target Customers
Behavioral segmentation
-> benefit segmentation
2 Groups of Target Customers:
1) Travelers:
offering unique hospitality experiences for travel and vacation.
Content mkt. strategy 3 - "Neighborhoods"
2) Hosts:
offering a way to monetize residences, and meet interesting people.
Content mkt. strategy 4 - "Stories"

Environment & Competition
Peer-to-peer industry
due to technological advances, people are more connected, more trust online
Pioneers: ebay, Craigslist...
Competitors
Direct:
Indirect:
HomeAway, Wimdu, CouchSurfing
TripAdvisor, Kayak, Orbitz
Positioning Strategies
Compared to:
Direct competitors - "more for less,"
and more reputable platform
Alternatives - greater variety, more uniqueness, first hand guidance
600,000 plus listings worldwide
Platform that connects sellers to users
Book unique places
Customized searches
Personalized services
Monetize your house
Listings in 190 countries
Headquarters in San Francisco, California
Airbnb has its twelve offices in:
Barcelona, Spain
Berlin, Germany
Copenhagen, Denmark
Dublin, Ireland
London, UK
Milan, Italy
Moscow, Russia
Paris, France
San Francisco, US
São Paulo, Brazil
Singapore
Sydney, Australia
"The Sharing Economy"
References
"4 Digital Marketing Strategies: An Airbnb Case Study - Search Engine Journal." Search Engine Journal. N.p., 25 Mar. 2014. Web. 23 Mar. 2015.
"Airbnb." : Ch 8 Segmentation and Targeting Markets. N.p., n.d. Web. 23 Mar. 2015.
"AirBnb Competitors." - Rivalfox. N.p., n.d. Web. 23 Mar. 2015.
"Airbnb Launches First Global Ad Campaign in Nine Markets." Advertising Age Digital RSS. N.p., n.d. Web. 23 Mar. 2015.
"Airbnb Nightmare: Prostitutes Use Apartment As Brothel - Gadling." Gadling. N.p., 15 Aug. 2012. Web. 23 Mar. 2015.
"Airbnb Presents: Wall and Chain - Based on a True Story." Wall and Chain English Comments. N.p., n.d. Web. 23 Mar. 2015.
"Airbnb Responds To Tenant-Landlord Restraining Order, Battle Over $20,000 Apartment Listing." Fast Company. N.p., 08 June 2012. Web. 23 Mar. 2015.
"Airbnb, the Mind of an Entrepreneur." A Hotel Life. N.p., 22 Mar. 2013. Web. 23 Mar. 2015.
"Becoming a Billion Dollar Startup." TNW Network All Stories RSS. N.p., 10 Mar. 2013. Web. 23 Mar. 2015.
"Dissecting AirBnB’s Business Model Canvas." Kenontek. N.p., 09 Feb. 2014. Web. 23 Mar. 2015.
"Great User Experience + Clear Value Proposition = Value Innovation." OReilly Radar. N.p., n.d. Web. 23 Mar. 2015.
"How Airbnb Built A Rock-Solid Business Model (+Free Template) - PPTPOP – Actionable Presentation Advice." PPTPOP Actionable Presentation Advice RSS. N.p., 11 Nov. 2014. Web. 23 Mar. 2015.
"How Airbnb Could Finally Disrupt the Business Travel Market." Forbes. Forbes Magazine, n.d. Web. 23 Mar. 2015.
"How AirBnb Is Using Content Marketing to Stay on Top — The Content Strategist." The Content Strategist How AirBnb Is Using Content Marketing to Stay on Top Comments. N.p., 05 Dec. 2014. Web. 20 Mar. 2015.
Moss, Caroline. "This Guy Made $50,000 Renting Out His Apartment On Airbnb So He Bought A House." Business Insider. Business Insider, Inc, 04 Oct. 2013. Web. 23 Mar. 2015.
"Re-imagine with Abandon. Learn to Love Disruption." Fiveminutemarketingcom. N.p., n.d. Web. 23 Mar. 2015.
"Reviewed." Brand New: New Logo and Identity for Airbnb by DesignStudio. N.p., n.d. Web. 23 Mar. 2015.
"Vacation Rentals, Homes, Apartments & Rooms for Rent - Airbnb." Airbnb. N.p., n.d. Web. 23 Mar. 2015.
"What Airbnb Can Teach You About Content Strategy." Inc.com. N.p., n.d. Web. 23 Mar. 2015.
"When It Comes To Sharing Startups, The Airbnb Model Doesn't Work For Everyone." Fast Company. N.p., 15 Apr. 2013. Web. 23 Mar. 2015.

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