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Airbnb Case Study

AirBnB has become a disruptive force in the hospitality industry by allowing people to list and rent their homes and apartments through an online platform. It focuses on providing cheaper and more local accommodations than hotels. AirBnB's strategies for growth include ensuring high quality photos on listings to attract customers, compensating hosts for safety issues to build trust, and allowing hosts to set flexible prices. While AirBnB has disrupted the industry, it faces challenges from some listings not complying with local laws and overwhelming some cities with tourists. Solutions include regulating the number of listings by region and prioritizing local renters over tourists.

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aayushi bhandari
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1K views

Airbnb Case Study

AirBnB has become a disruptive force in the hospitality industry by allowing people to list and rent their homes and apartments through an online platform. It focuses on providing cheaper and more local accommodations than hotels. AirBnB's strategies for growth include ensuring high quality photos on listings to attract customers, compensating hosts for safety issues to build trust, and allowing hosts to set flexible prices. While AirBnB has disrupted the industry, it faces challenges from some listings not complying with local laws and overwhelming some cities with tourists. Solutions include regulating the number of listings by region and prioritizing local renters over tourists.

Uploaded by

aayushi bhandari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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AirBnB unique concept case

study

Disruptive innovation is the new marketing strategy that many

firms are leaning on to. Disruptive innovation attracts

customers due to its unique concept and thereby leaving little

space for existing players to grow. This case study analyses how

AirBnB has become a disrupter in the hospitality industry and

the factors why Airbnb is the preferred choice of people

nowadays.

AirBnB,a San Francisco based online website founded in 2008


provides hospitality and rental services across the globe. It
allows the hosts to list their apartments,homes or cottages on
thesite and customers or travellers can take up those homes or
apartments on rent according to their loaction. It acts as a
broker and takes commission on every house that is rented.
Initially they focused on cheap renting/hospitality services and
after gaining success they started focusing on high end rented
apartments/hotels so that they could target each and every type
of customer. Travellers can select any apartment based on their
selected destination and according to their budget. Airbnb is
giving tough competition to hotels because of their flexible
options.
Airbnb uses a lot technology tools in their day to day operations.
They attract customers by addressing that they provide cost
savings, local experience and households facilities. It has
created a new market where hosts can use various tech tools
promote their accommodations.

AirBnb’s strategies

 The founders of Airbnb realized that the images of the


homes/cottages played a major role in selecting a
particular home/cottage on rent. Initially these images
uploaded by the hosts were not that appealing so the
founders themselves interacted with hosts and replace the
images with high resolution ones.
 These new appealing photographs attracted a lot of
customers and profits of the company went up within a
week.
 Another move by the founders was to ensure safety for the
host. Any safety issue created would be compensated by
the company to the host, this move build trust of the
customers and Airbnb started touching new heights.
 Airbnb lets the host to set the price of their
accommodation. They have latest software that tells them
the market value of their apartment and it becomes a lot
easier for the host to set the price of their homes. They can
make changes in the prices of their property during
festivals or special occasions to maximise their profits.
 India is one of the top 3 strategic markets for Airbnb. Since
Indian culture says “atithi devo bhava” meaning guest is
god,Airbnb plans to expand in India majorly.
 Their primary focus is to let people know about the concept
and make them understand that they can travel light.
 Also attracting Indian hosts is an important target they
want to achieve.
 Airbnb’s #livethere campaign was targeted to attract
230million millennials of India and they were successful in
the campaign as it created a lot of buzz amongst the
millenials.

Problems to the competitors


 In the era of completion, innovation is very essential for
the survival of any industry. Creating & innovating new
ideas and concepts attracts more consumers.
 Most of the hotels will have to withdraw from the market
because they’re not able to face the tough competition
given by airbnb.

Problems of Airbnb

 Sometimes the listings on airbnb does not abide by the


local laws or are unregistered making it illegal as per law.
 Airbnb claims to give visitors city experiences but as the
visitors grow the house listings also increase which makes
the city deserted for the locals.
 Cities are flooded with tourists which is making it difficult
for the locals to find rented apartments for them.

Solution to the problems

 Only a specific no. of houses should be allowed to get listed


in a specific region in accordance to the size of the region.
 All house listings should be registered and thoroughly
checked by an authority.
 Preference to actual residents looking for rented
apartments should be given.

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