AirbnbAnna BurckhardtJessica Eversoll
Michael JerovetzSamantha TaylorElizabeth Woidat
Discussion 302, Group 3
Brand Description ● Marketplace for people to list, discover, and book unique accommodations around the world.● The brand has always focused on its community of guests and hosts● 2007- Forget Hotels
● 2008/2009- Travel Like a Human● 2013/2014- Belong Anywhere● 2016- Live Like a Local● Today- Belonging Anywhere● Personalized travel experience, reclaiming the true nature of traveling ● We chose this brand after the uproar on social media over Air B n B’s Super Bowl LI’s Advertisement
Target Description● Travelers: Millennials looking for a unique experience and traveling for leisure
○ Attempting to expand into families, older markets, and business travelers
● Hosts: Apartment / home owner looking to make money or meet new people
● 78 million night rentals in 2016○ Average stay estimate: 3-4 nights
● Why Airbnb
○ Customers enjoy ‘the hunt’ for accommodations
○ Host % of revenue fee cheaper if they are earning
>$15k / year on their property
● Information through websites, apps, and online reviews
● Likes: Opportunity for immersion in local culture,
unique properties, meeting new people, inclusion
● Dislikes: too much trust in strangers is required, poor customer service all domiciled in America
Market Snapshot● $16 billion 2016 US vacation rental market size
*FlipKey is >20% of revenue for
TripAdvisor. FlipKey acquisition price
not disclosed.
Strengths● Well recognized brand and trendy image● 3 million listings worldwide
Weaknesses● Resort area inventory weak, such as a beach
vacation● Poor customer service domiciled in US
Opportunities● Low income property owners can receive income
from listings, which attracts hosts ● Variety of price ranges for renters allows for a
bigger target audience● Demand to ‘live like a local’, not a tourist
Threats● Zoning regulation that make Airbnb rentals illegal● Cultural conflicts where people don’t like to share
their homes● Can’t control quality of hosts● ‘Nightmare’ customer experiences publicized on
social media
Brand Valuation ($Bn)
Airbnb 31
HomeAway / VRBO / Vacation Rentals (Expedia)
3.9
FlipKey (TripAdvisor) 4.8*
Creative Brief ● Perceptions
○ Belonging, warm, trustable, connected helpful○ On the other hand, there is often uncertainty about safety. ○ Stranger danger○ AirBnB Horror stories
● Target description: ○ Millennial travelers who seek more than standard traveling routines and wish to have a local experience ○ Millennial hosts who are open to accommodating and helping share their local experience
● Objective:○ To influence people’s concept of travel, increase brand awareness and expand market share.
● Benefit:○ AirBnB offers an innovative and different traveling experience○ helps a traveler live like a local, feeling connected and belonging .○ Hosts conveniently list properties
■ Short Term leases● Support:
○ Allows Hosts to rent out unused spaces, and travelers to search for and book accommodations○ Offers services which feature on helping customers to “live like locals: “
■ “Get to Know Neighborhoods” - matching system to allow customers to book preferred neighborhood■ “Bespoke Matching” - personality recommendations ■ “Guidebook” - Showcases local amenities■ “Experiences” vs. just staying in a hotel
Positioning StatementTo millennial travelers, Airbnb is the vacation rental accommodation that provides a
sense of belonging by allowing them to live like a local.
Airbnb allows its customers to feel immersed in the local culture by renting out space in private homes and
apartments. Its ease of use and low costs make it appealing to young travelers who want to enjoy sightseeing and
traveling without paying expensive vacation rental home costs. Airbnb saw a way to grab a large portion of market
share by charging nothing up front for hosts or renters, and charging fees only when bookings are confirmed.
Positioning Map Age
● Airbnb and Flipkey market to a younger demographic while Homeaway has more traditional owners and property listings
Cost
● Total Traveler Cost (lowest - highest): ○ Homeaway, Airbnb, Flipkey○ Not seen in cost, but Airbnb
differentiates itself by not charging any fees up front, only when bookings are confirmed to both renters and hosts. Also, payments and reviews are directly through Airbnb
Affordable Expensive
Younger
Older
Billboard Ad
Your Turn: Advertisement EvaluationSummary Grade (0-4)
Clear Target?
Unique USP?
Compelling reason to try?
Attention getting?
Overall Evaluation?
Video Ads ● We Accept, Super Bowl 2017 Ad
● What is Airbnb?
Strategic EvaluationSummary Grade (0-4)
Clear Target? ● Acceptance● Youth● Broad
3
Unique USP? ● Living like a local● Sense of belonging● Too many selling points
3
Compelling reason to try?
● Unique Experience● Supporting a cause● Focused more on emotional
reaction than actual service
2
Attention getting? ● Colorful, Bright● Controversial● Strong social message
4
Summary Grade (0-4)
Overall Evaluation? ● Strong, timely message
● Attracts the eye
● Unique features
● Youthful
● Too broad at times
● Tries to accomplish too
much
3
Strategic Evaluation
Conclusion ● In conclusion, Airbnb’s strategy is fairly strong
○ Strongly reinforces the perception of the brand as being inclusive and accepting
○ Succeeds at meeting the traveler’s needs by focusing on creating a more authentic experience
○ Demonstrates the USP of feeling a sense of belonging when renting with Airbnb
○ Evokes an emotional response from the audience as a reason to use the service
● Recommendations
○ The advertisements tend to appeal more to the traveler, could work to specifically target the host
target market
○ Often times the ads focus more on the values of the brand than the actual service
○ Safety is a major consideration for the target audiences, could be touched upon in future ads
Appendix- Brand Description (Slide 1)https://www.airbnb.com/about/about-us
https://www.resultmaps.com/performance-resource-library/2017/4/18/the-airbnb-mission
https://all-about-airbnb.com/post/143221488726/airbnb-brand-evolution-live-there
https://www.underconsideration.com/brandnew/archives/new_logo_and_identity_for_airbnb_by_designstudio.php
Appendix - Target Market (Slide 2) http://www.leeabbamonte.com/travel-tips/millennials-driving-the-vacation-confidence-index.html - picture
http://arda.org/arda/news-information/blogs.aspx?id=4563&blogid=2354 - picture
https://econsultancy.com/blog/68375-airbnb-how-its-customer-experience-is-revolutionising-the-travel-industry - likes / dislikes
https://www.quora.com/What-has-been-peoples-experiences-with-Airbnbs-customer-service-reps - dislikes
https://airbnb2015review.wordpress.com/2015/07/07/airbnbs-target-audience/ - Travelers / hosts
http://fortune.com/2016/04/11/airbnb-bookings-one-billion-a-year/ - bookings estimate
https://www.quora.com/Who-is-Airbnbs-biggest-competition - why Airbnb
https://www.wsj.com/articles/how-airbnb-and-its-rivals-are-winning-over-hotel-snobs-1498157392 - why Airbnb
https://www.statista.com/outlook/268/109/vacation-rentals/united-states#market-arpu- market size
Appendix - Market Snapshot (Slide 3) http://fortune.com/2017/02/15/airbnb-profits/ - 2016 revenue
https://www.quora.com/Who-is-Airbnbs-biggest-competition - competitors
https://blog.cayenneapps.com/2015/03/07/airbnb-swot-analysis/ - SWOT
https://www.slideshare.net/mohieismail9/airbnb-inc-strategic-plan-20172021-mba-strategic-management-assignment-harvard-case-study-june-2017 - SWOT
https://www.forbes.com/sites/petertaylor/2016/12/07/watch-out-homeaway-airbnb-heres-why-tripadvisor-may-be-your-biggest-competition/#11e62592736d - competitors
https://www.nytimes.com/2015/11/05/business/dealbook/expedia-to-acquire-homeaway-for-3-9-billion.html - HomeAway valuation
https://www.cnbc.com/2017/03/09/airbnb-closes-1-billion-round-31-billion-valuation-profitable.html - Airbnb valuation
https://finance.yahoo.com/quote/TRIP/ -Tripadvisor valuation
Appendix- Creative Brief (Slide 4)https://skift.com/2015/11/18/airbnb-emphasizes-its-host-community-to-make-sleeping-with-a-stranger-less-weird/
https://prezi.com/czeseajexylz/airbnb-target-group-presentation/
https://airbnb2015review.wordpress.com/2015/07/07/airbnbs-target-audience/
Appendix- Positioning Statement (Slide 5)http://blog.digital-trip.com/2016/10/18/what-makes-airbnb-such-an-inspirational-progressive-brand/
https://airbnb2015review.wordpress.com/2015/07/07/airbnbs-target-audience/
Appendix- Positioning Map (Slide 6)https://airbnb2015review.wordpress.com/2015/07/07/airbnb-vs-flipkey-com/
https://www.quora.com/How-is-Airbnb-different-from-HomeAway-and-VRBO
https://www.tripping.com/industry/rental-companies/flipkey-vs-airbnb
https://www.exploringlifesmysteries.com/vrbo-vs-airbnb-vs-homeaway-vs-flipkey-
vs-windu/
http://wallethero.com/airbnb-vs-vrbo-vs-homeaway-vs-flipkey-comparing-vacation-rental-sites/
Appendix- Advertisements (Slide 7)● We Accept, 2017 Super Bowl Commercial
○ https://www.youtube.com/watch?v=yetFk7QoSck
● What is Airbnb?○ https://www.youtube.com/watch?v=dA2F0qScxrI
● Is Mankind?○ https://www.youtube.com/watch?v=7Dx3JyrUtBw
● The Acceptance Ring○ https://www.youtube.com/watch?v=0Y4EqF0PR4E&feature=youtu.be
● Billboard Image○ https://fiu-assets-2-syitaetz61hl2sa.stackpathdns.com/static/use-media-items/22/21750/full-2
560x1440/574c1828/bnb_billboard_011.jpeg?resolution=0
Appendix- Conclusion (Slide 10)Marketing Concepts Applied in Our Conclusion
● Concept from Chapter 5: Why it is important for marketers to understand how social influences
influence their target market?○ Social influences in America today have polarized our country in many ways, from racial tension to ideological
political differences. Airbnb took note of this and appealed to their target market by promoting a brand perception of belonging and togetherness to appeal to those who share these values.
● Concept from Chapter 4: Describe a segmentation strategy using geographic, demographic, behavioral
dimensions○ Airbnb segments their market based on behavioral dimensions (travelers and hosts). ○ They also segment by using demographic dimensions by focusing on a younger audience (millennials)
● Concept from Chapter 4: Defend single, multiple, and combined market approaches○ Currently Airbnb seems to use a combined market approach by targeting the submarkets travelers and hosts
with the same marketing mix○ As a possible recommendation for Airbnb, as they continue to grow they may consider using a multiple market
approach and use separate marketing mixes for each group