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Written Assignment 1

1) Airbnb was founded in 2008 as a platform for people to list their homes as short-term rentals for travelers to stay in. This provided a cheaper alternative to hotels. 2) Airbnb's value proposition was that it offered unique local experiences through homes in scenic areas at lower prices than hotels. This allowed both guests and hosts to benefit financially. 3) As the economy recovered, some questioned Airbnb's continued value. However, Airbnb has expanded its offerings to include restaurants and activities to provide more value to customers through local experiences rather than traditional tourism.

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64 views4 pages

Written Assignment 1

1) Airbnb was founded in 2008 as a platform for people to list their homes as short-term rentals for travelers to stay in. This provided a cheaper alternative to hotels. 2) Airbnb's value proposition was that it offered unique local experiences through homes in scenic areas at lower prices than hotels. This allowed both guests and hosts to benefit financially. 3) As the economy recovered, some questioned Airbnb's continued value. However, Airbnb has expanded its offerings to include restaurants and activities to provide more value to customers through local experiences rather than traditional tourism.

Uploaded by

sir j
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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1

Value of a Proposition

Name of the Student

Department

BUS 5112 -01 Marketing Management

Name of professor

Due April 14, 2022


2

Value of a Proposition

Airbnb

“Where both the guest and the host walk away happily, One with wonderful local

experience and the latter with smiling pocket.”

Airbnb was founded in the year 2008 as a platform where residents could list their homes

as rentals for a short period while they are on holiday or in far states. This was listed for the

short-term travelers who could need a place to stay for two or three days and who like to have

alternatives to lodgings (Symon He, 2020). It allows the users to run a search through other

people’s experiences and reviews thus allowing the user to have the full picture of a house before

selection.

This platform allows users to have additional pre-arranged tours and selected restaurants

and even recently visited recreational areas that set up a wonderful adventure ahead for the

traveler. Initially, the houses advertised under this platform were considered cheap and

affordable as the owners offered relatively low prices. This says today is the reason Airbnb has

tremendously grown to become a 2.6 billion empire as this alternative saw a massive liking that

took the travel industry by storm (Thomas, 2016). Additionally, the places where most of the

houses are located have been termed by many as "cool" with sceneries. This was a brilliant move

by the management as many of the homes have ample road access with the Airbnb homes

offering the best home experiences.

During its formation and growth, many could not even define correctly what Airbnb

meant as it was never a real estate company. At one time, the retail estate players were hit by the

recession, however, since it did not own properties and its unique value proposition, Airbnb had

a breakthrough that was the start of its tremendous success. During this particular time, many
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people were hit by the economic downturn, people had their jobs on the line and due to

relocations, it was hard for many to live in hotels and pay huge prices per night. This opened the

path for Airbnb to specifically address the people's pain points and they provided the services

cheaper. This price strategy made many opt for Airbnb and hence kept the growth on the rise

(Philip Kotler, 2015).

Not only did the guests get cheap and amazing environments, but Airbnb also provided a

range of benefits for the hosts and home providers. It made them have other alternative sources

of income during the hard times. It was strange to open doors to strangers but Airbnb made it a

blessing of more earnings. As times go by, this platform has received appreciation from all

around. However, in recent times, the economy in parts has recovered and many people have

returned to the expensive living styles. These have made people start questioning the value it

continues to provide, something that has caused it to generate a few billion in a financial year.

In the wake of this, Airbnb has come up with new strategies which seem to bring out the

different experiences of staying at local homes with those staying in the hotels. They have

worked smart in framing their value of a proposition that local experience is the new tourist

experience replacing the traditional hotel staying tourism. Additionally, they have expanded their

portfolio to restaurants and experiences and this has allowed many customers to access a variety

of potential activities upon travel and stay. This has further solidified their network and the

future projection is that Airbnb will have more customers and a stronger network that will keep

the customers and hosts happy and satisfied.


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References

Philip Kotler, G. A. (2015). Principles of Marketing. Pearson Education, Limited.

Symon He, J. S. (2020). Airbnb For Dummies. John Wiley & Sons.

Thomas, M. (2016). Airbnb: How to Make Money on Airbnb and Easily Earn Up to $10,000 a

Month in the Comfort of Your Own Home. CreateSpace Independent Publishing Platform.

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