Looking at Airbnb’s business we see a new and innovative approach to the current accommodation industry. In 2008 two friends with fresh eyes created a company that allowed people to rent spare bedrooms from strangers in unfamiliar cities (Business Model Tool Box, 2014). A crazy thought back then. This exploded over the years creating a huge online business, what we know as Airbnb.
Their revenue model works on taking a percentage of each transaction that goes through the website. Airbnb gives this opportunity to anyone who has internet access and a camera the ability to do this. With these two easily accessible technologies anyone around the world has the opportunity to turn their spare room, apartment or house into income.
It’s not only about the location, but, the experience. See video below.
Airbnb is currently moving their business model into the experience industry, allowing people to sell services such as surfing lessons, yoga classes, bush walks, etc.
Looking closer at Airbnb’s 5 I’s
Using and interacting with Airbnb’s website you will notice detailed personable filters to help with searching. The ability to review and rate people and your stay at their house. Traveling over the last few months I used Airbnb for every place I stayed, this high interaction level with it’s user makes a more enjoyable experience for everyone.
Airbnb are using particular techniques to help with making sure every customers has the right home. They are doing this by introducing extremely personalised searching options and making sure all customers leave detailed reviews giving enough information for the next traveller.
See pictures below;
Airbnb is heavily integrated into social media channels with large engagement through its main channels Facebook and Instagram. It has recently created marketing campaigns that target particular political decisions of Donald trump makes, integrating itself into the political arena.
Independence of Location:
Travelers are able to access Airbnb from any device and every country. China has currently requested Airbnb to hand over all information of all Airbnb users in China (Abrams, 2018), which has made some people concerned asking the question should Airbnb continue operating in China.
Business Model Toolbox. (2018). Airbnb Business Model - Business Model Toolbox. [online] Available at: https://bmtoolbox.net/stories/airbnb/ [Accessed 23 Aug. 2018].
ABRAMS, A. (2018). Airbnb Will Start Sharing Guest Data in China With Chinese Authorities. [online] Time. Available at: http://time.com/5221666/airbnb-china-share-data-chinese-government/ [Accessed 23 Aug. 2018].