Airbnb: Business Model and Market Positioning

Introduction

Good morning everyone and welcome to Airbnb. Thank you all very much for coming here today. My name is Michelle Romero and, as some of you know, I am responsible for management and analysis of tourism trends department and I have been working for Airbnb during 8 years.

Airbnb is a San Francisco based company and it was founded in 2008. Airbnb is a community market that publishes, advertises and reserves budget accommodation in more than 190 countries using online services. It is based on the 'Bed and Breakfast' mode that is where the 'bnb' comes from.

I would like to take this opportunity to explain you the purpose of my speech. It is to present the business model and to defend his position in the market. The main goal of our model is to become an indispensable part of a trip.

My talk is specially aimed to those of you students of a double degree in business and tourism and it will be good for you to know all the opportunities of accommodation.

I've divided my talk into four main parts: Firstly, I will explain the target market and the present situation of the company with a SWOT analysis; secondly, I will contrast Airbnb with the main competitors; thirdly, I will outline the results of the company with a line graph and a pie chart. And, to sum up I will end with a summary.

My presentation will last around 10 minutes. Please, if you have any doubts I would be glad to answer any questions at the end of my talk.

2.- Target Market and SWOT Analysis

Now let’s move to the first point which is about Airbnb’s target market. Airbnb’s users are divided in two markets segmentations: travelers and hosts. The target market for Airbnb users usually involves travelers looking for a spacious and comfortable place to stay. But, the other target are hosts. These include owners or renters who are willing to rent out their places. The reasons vary as well. Whatever the reason is, all hosts are looking to list their current place on Airbnb.

Now, we continue with SWOT analysis. This identifies the strengths and weakness of the service, and the opportunities and threats it faces. The former are considered internal factors and the later are external factors.

Strengths

Talking about strengths. Airbnb is recognized as a much cheaper alternative to hotels. Prices are highly competitive. In our webpage clients may surf and choose the perfect place according to their budget. Helping to make their decision they can check out the ratings provided by previous guests. This system is crucial to build and maintain reliability in the Airbnb community.

Airbnb isn’t just about saving money, it’s also about experiences. Picture this: in a hotel, every room is basically the same, they have the same TV set and side table, the same grey carpets and white walls. Airbnb is different: rooms and houses are unique. This is one of the reasons why the company is easily expanding worldwide.

Weakness

But I have to talk about weaknesses too. Airbnb faces problems stemming from housing laws and regulation violations in some places. Hosts are paid for offering their rooms for a set time. It seems like easy money, and who doesn’t want quick cash? That way of thinking is leading people to offer up rooms and guest houses against their housing laws. Meaning, they are not legally allowed to but they list their places for rent anyway.

Opportunities

The next factor is opportunities. Cities are rising up in favor of Airbnb. San Francisco, for example, has changed their housing regulations and laws. Now, Airbnb listings are legal. Communication between guest and hosts is easier now than ever. Airbnb offers a mobile app. Trust is the key of our business.

Threats

The last factor of SWOT analysis is threats. At this moment, the company is dealing with a number of lawsuits all over the world. Hosts are also facing legal repercussions (fines) for hosting illegal lodgings. Generally speaking, it seems that the biggest threat for everyone involved in this business is the failure to follow housing protocols. Also, the competitors scene is growing.

And that’s the end of my first part.