Airbnb Business Model, Target Market & SWOT Analysis

“Airbnb Is the Best Option”

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 the Management and Analysis of Tourism Trends department, and I have worked for Airbnb for eight years.

Airbnb is a San Francisco–based company founded in 2008. Airbnb is a community marketplace that publishes, advertises and reserves budget accommodation in more than 190 countries using online services. It is based on the "bed and breakfast" model, which is where the "bnb" comes from.

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

My talk is especially aimed at students of a double degree in Business and Tourism, and it will be useful for you to know all the accommodation opportunities available.

I've divided my talk into four main parts:

• First, I will explain the target market and the present situation of the company with a SWOT analysis;
• Second, I will compare Airbnb with the main competitors;
• Third, I will outline the results of the company with a line graph and a pie chart;
• And finally, I will conclude 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.

Target Market and SWOT Analysis

Target Market

Airbnb's users are divided into two market segments: travelers and hosts. The target market for Airbnb users usually involves travelers looking for a spacious and comfortable place to stay. The other target is hosts, which include owners or renters who are willing to rent out their properties. The reasons hosts list vary, but whatever the reason, hosts are looking to list their place on Airbnb.

SWOT Analysis

The SWOT analysis identifies the strengths and weaknesses of the service, and the opportunities and threats it faces. Strengths and weaknesses are internal factors; opportunities and threats are external factors.

Strengths

Talking about strengths: Airbnb is recognized as a much cheaper alternative to hotels. Prices are highly competitive. On our website clients can browse and choose the perfect place according to their budget. To help make their decision, they can check ratings provided by previous guests. This rating 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 — the same TV, side table, grey carpets and white walls. Airbnb is different: rooms and homes are unique. This is one of the reasons why the company is expanding worldwide.

Weaknesses

We must also discuss weaknesses. Airbnb faces challenges related to housing laws and regulation violations in some places. Hosts are paid for offering their rooms for a set time. It can seem like easy money, and who doesn’t want quick cash? That mindset has led some people to offer rooms and guest houses in violation of local housing laws. In other words, they are not legally allowed to list but do so anyway.

Opportunities

The next factor is opportunities. Some cities are moving toward regulation that favors short-term rentals. San Francisco, for example, has revised housing regulations and clarified when Airbnb listings are legal. Communication between guests and hosts is easier than ever thanks to mobile apps. Trust is the key to our business.

Threats

The final factor in the SWOT analysis is threats. Currently, the company is dealing with a number of lawsuits around the world. Hosts are also facing legal repercussions such as fines for offering illegal lodgings. Generally speaking, the biggest threat for everyone involved in this business is noncompliance with housing protocols. Additionally, the competitive landscape is growing.

And that's the end of my first part.