Localization Strategy for Airbnb in Japan

Localization Strategy for Airbnb in Japan

Smith Andrew David

Yoshimaru Junko

Temple Univ.

Summary-1 • Japanese Travel Market

• Different points in Japan

• Seasonal Demand(Peak season)

• High demand in Tokyo and Osaka

• Net café and cheap places for young travelers

• Customer Insights in global

• Price consciousness

• Connectivity and Communication

• Flexible Travel

• Niche

• Analysis of web users in Japan

• Analysis of hotel booking in Japan

• High Demand for Quality from Japanese Service

• Emergency support

• Language support

• Payment support

Summary-2

• Seasonal / Weekend Strategy • Critical needs for AirBnB

• Attractiveness for visitors 1-3

• Localization Strategy for AirBnB

• Localization Plan for Japan 1-3

• Conclusion

• Appendix

Competitors and Localization Models

Competitors: Rakuten Travel 1-4

Best Reserve

Localization model: Amazon.com

Analysis booking websites in Japan

Japanese Travel Market

Market size (JTB No.1 travel agency Forecast Dec. 2012)

• Japanese Travelers 287 Million ( +0.3 %)

• Foreign Travelers in Japan 8.9 Million ( +7.9%)

• http://www.jtbcorp.jp/scripts_hd/image_view.asp?menu=news&id=00001&news_no=1635

Inbound Tourism

• Visitors from overseas are increasing this year.

• Especially the young travelers from overseas travellers are not good at finding budget hotels..

• Location and Experience is important.

Different Points in Japan •Seasonal Demand (Peak season)

Live Events, Meetings, College entrance exam in Tokyo, Wedding party.

•High Room demand in Tokyo and Osaka In Peak season and consecutive holidays, No budget rooms in Tokyo and Osaka

High occupancy rate for hotels in Tokyo and Osaka

Tokyo

Osaka

Different points in Japan • Cheap places for young people without a room are

provided. People can’t find a good place to stay in Tokyo can use Manga café(Internet cafe) and Sauna are solutions for the people who can’t find good room after midnight.

<Pros> Internet and soft drinks are provided for free Cheap and easy to use <Cons> Noisy and uncomfortable .

Global Customer Insights

• Price consciousness AirBnB customers are experienced or young travelers who visit for personal reasons rather than business. Price is extremely important.

• Connectivity and Communication

IT skilled generation can be reached through various forms of social media such a Twitter or Line which are popular in Japan.

• Flexible Travel Schedule

Affordable rooms that allow plenty of time to stay and arrange plans.

• Niche

design of room, location, places and themes appealing to various hobbies and interests

Analysis web users in Japan

Credit cards

Cash on Delivery(COD)

Convenience store(CS)

Bank or ATM

Internet /mobile banking

Additional chared to providers

Japanese trend Payment preference:57.7% of Payment done by credit cards. 47% is by COD, 33.9% by CS

http://www.soumu.go.jp/johotsusintokei/whitepaper/ja/h24/html/nc243140.html

2 Seconds is too long for Japanese users Akamai Reveals 2 Seconds is the New Threshold of Acceptability for eCommerce Web Page Response Times http://www.akamai.com/html/about/press/releases/2009/press_091409.html

Analysis hotel booking in Japan

All Direct booking

Hotels’ website Net agency

Big Travel agency Small

TravelAgency

Net agency sales is increasing in Japan compared with data in 2007 and 2005

http://ryoken-jp.com/club_enquet/3pun-35.pdf

Hotel website:9.6%

Net Agency:15.0%

High Demand for Quality from Japanese

• Emergency support Japanese users are not used to staying in private houses in Japan.

Users needs supports from hosts via SMS or Twitter or Line.

• Language support Japanese people are sometimes not good at reading English documents. All reviews are English.

So reviews should be translated into Japanese.

• Payment support Young Japanese people don’t usually have credit cards. Payments from Convenience stores or mobile phone are more convenient.

Payment support is critical Ratio of Card holders among Japanese youth is lower than those who are aged over 30y. http://www.jcbcorporate.com/news/pdf/report2012.pdf

Payment at Convenient Stores Ideal

Over 54000 stores are open 24 hours.

Seasonality / weekend strategy

•Seasonality Strategy • Airbnb global website does not consider certain seasonal changes.

• In Japan, the demand often fluctuates with the season.

• In Spring all people have to go Tokyo for meetings and Entrance ceremonies.

•Weekend strategy • Japanese demand is basically fluctuating by holidays and weekends

• Young people want to travel during Japan’s frequent 3-day weekends for the following reasons:

• Leisure : Tokyo Disney resorts, Tokyo skytree, Hot springs in Hakone

• Shopping: Shibuya, Harajuku, Shinjuku, Odaiba,

• Peak season in TOKYO, people have to shorten the travel schedule due to lack of rooms or expensive room charge.

Critical needs for AirBnB

Attractiveness for visitors-1 • AirBnB site is attractive by utilizing excellent photos

• Japanese people want to get more information from a Key message.

• No.1 e-commerce in Japan, Rakuten onlineshop group uses Key message and appealing discount offers which are easily visible on the front page.

Discount Event

Small Photo

Discount coupons

Attractiveness for visitors-2 • Mercedes’s site is modified to Japanese version.

More tex and info

http://www.mercedes-benz.co.jp/ http://www5.mercedes-benz.com/en/

Many photos appealing

Attractiveness to visitors-3 • Mercedes’s site is quick to respond to visitors’ needs.

Support for purchase

http://www.mercedes-benz.co.jp/

Popup!

• Visitors to AirBnB already know where they want to stay.

• Many photos are not needed for Japanese users on Top page.

Localization strategy for AirBnB

Key words Detail

Product

Value for stay Best Recommendation from customers

Last week/Month in Tokyo…

Customers

satisfaction

Responders to Customer Satisfaction Survey get

rewards.

Easy to find Provide detail filters for visitors. Distance from train

or bus station is vital information.

Price Discount offer Discount coupon or points for young generations

Best rate offer Ask for the budget before selection

Place Focusing on big

cities

Tokyo, Osaka, Kyoto, Nagoya, and other big Major

cities (Craigslist cities are referred).

Location Select from Location Name or Station name

Promotion Key words

Many photo on the top page is cluttered for visitors.

Use seasonal events and words including hobby

and station name.

Registration Registration from twitter or LINE and Facebook is

good for hosting or staying.

Localization Plan for Japan-1

• Major Location Name or Tourist attraction must be Displayed

• Seasonal Photo is good for Xmas visitors.

• Quick search Window must item for the city

Major Place Displayed

Direct Links for Room suggestion

Quick search Window

Renewal for Japanese version-2

• Room’s photo is important content. All users want to know the price. So Price is displayed in large font where it can be quickly seen.

• Host Language is important for Japanese. Basic setting for Japanese Language filter is required or should be displayed in normal setting.

• Time it takes to the nearest station or tourist attraction should be displayed.

• To share this page Social tool bar is required.

Showing Price in Big size Font

Average price suggestion

Sort tool bar to find best rooms

Social tool bar

Localization Plan for Japan-2

Localization Plan for Japan-3 To eliminate Language barrier

• Detail Filter must be shown directly. Japanese people want to control all filter items for booking to select Japanese speakers.

• Access from the nearest station must be shown

• For Japan, access to a convenient store is better for booking.

Detail filter shown

Conclusion: Focus

•

• Japanese Domestic market which is the key to success for AirBnB.

• Use key words, Phrases and illustrated Maps rather than Photos.

• Support young generations who don’t have experience.

• Eliminate Language Barrier.

• Provide Social tool bar for sharing the experience with friends.

Appendix

Competitors: Rakuten Travel-1 • Rakuten Travel is the No1 web site based Travel agency.

• It was launched by another company (Hitachi Zosen), but Rakuten group bought this site in 2003.

• This site attracts many customers by using many key words including Business travel, Luxury inn, Onsen (Hot spring), Tokyo Disney Resort, Family travel, Couple, Ski…

• Customers can get some reward points for booking (Normally 1%, up to 10%).

Mapp

Key words

http://www.travel.rakuten.co.jp/

Competitors: Rakuten Travel-2 • Rakuten website design is excellent for travelers.

• Japanese version contain much information including air and rail and rental cars.

• Promotes many campaigns for the specific travelers.

Hot spring campaign

Discount coupon

http://travel.rakuten.co.jp/select/area/201311/

Recommendations

Competitors: Rakuten Travel-3

Sort by Price, evaluation, and recommendation

Easy access for Customer reviews

Easy to wwitch back to checked hotel for selection

http://travel.rakuten.co.jp/business/tokyo/C.html

Sort tool bar

Checked Hotels

Customer voice

Competitors: Rakuten Travel-4 • All hotels are evaluated by hotel guests.

• Customer reviews are easily accessible.

• Customer reviews sometimes get responses from hotels.

http://travel.rakuten.co.jp/HOTEL/31951/review.html

Social tool bar

Evaluation Point Service Place Room

Equipment Bath Food

Comments from Hotels

Competitors: Best Reserve

Seasonal Campaign

• Best Reserve was established by the founder of Rakuten Travel (which was called MyTripNet) after the Acquisition of Rakuten. He started this site which is similar to Rakuten Travel.

http://www.bestrsv.com

Mapp

Recommendations

Localization model :Amazon.com-1 • Amazon.com is a splendid model for AirBnB

• Amazon Japan sales are growing.

• Attractive Key words and messages.

Amazon.com Amazon.co.jp

Localization model:Amazon.com-2 • To increase customer loyalty, Amazon now provides discount

points for all registered students.

Student campaign

Seasonal Campaign

Localization model:Amazon.com-3 Amazon Student Student campaigns are supported by many sponsors which focus on young generations

Sponsors Student Rewards

Annual charge for free trial (6 Month)

10% discount points 1500 points for registration http://www.amazon.co.jp/gp/student/signup/info/ref=std_gwr_1311?pf_rd_m=

AN1VRQENFRJN5&pf_rd_s=right-csm-1&pf_rd_r=01GS6E5NDC8HSXGTZVVZ&pf_rd_t=101&pf_rd_p=151503769&pf_rd_i=489986

Worthy website of imitation • Athome.co.jp is good example for AirBnB

http://www.athome.co.jp/rent/01_13

Quick search from Illustrated Map Area

Station/ Railway Map

Railway Route Time to the destination

Popup!

• Many location/ Station name on next page

• Many option for the selection

Analysis booking websites in Japan •Similarweb.com provides good traffic data for AirBnB

http://www.similarweb.com/website/travel.rakuten.co.jp

Analysis booking websites in Japan •Similarweb.com provides good traffic data for AirBnB

http://www.similarweb.com/website/travel.rakuten.co.jp

Rakuten Travel

Search Engine

Is Top

User Interests of Rakuten Travel •SimilarWeb’s Analysis is heavy users’ interests of visitors to Rakuten Travel.

Interests of

Rakuten Users

Big words are

Travel, Shopping, Hotel

reservation, Campaign,

Japan

Rakuten Travel

Social tools users of Rakuten Travel •Best social networks spreading the buzz and referring traffic in Japan is Facebook and Twitter.

•In case of Rakuten Travel, this site has already have best reputation for the travel booking. The ratio of social network is not so high.

•AirBnB have to attract visitors by spreading rumors and reputations.

Top 2

Facebook &

Twitter

Analysis other websites in Japan-1 •Similarweb.com provides good traffic data for AirBnB

http://www.similarweb.com/website/tripadvisor.jp

Search Engine Is

Top

TripAdvisor.jp

Analysis other websites in Japan-2 •Similarweb.com provides good traffic data for AirBnB

http://www.similarweb.com/website/bestrsv.com

Direct Link Is Top

BestReserve.com