Airbnb Anna Burckhardt Jessica Eversoll Michael Jerovetz Samantha - - PowerPoint PPT Presentation

Airbnb

Anna Burckhardt Jessica Eversoll Michael Jerovetz Samantha Taylor Elizabeth 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
• n

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 Statement

To 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 Evaluation

Summary 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 Evaluation

Summary 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-the re https://www.underconsideration.com/brandnew/archives/new_logo_and_identity_f

• r_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-201 7 - SWOT https://www.forbes.com/sites/petertaylor/2016/12/07/watch-out-homeaway-airbnb-heres-why-tripadvisor-may-be-your-biggest-competition/#11e 62592736d - 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-sle eping-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-vacatio n-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