airbnb business model analysis
TRANSCRIPT
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Business Model Analysis
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The travel revolutionNo easy way existed to booked a room with a local or became a host
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Book homes from local hosts in countries and experience a place like you live there.
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PROBLEMCostumer Segments |
Price is an important concern for customers booking travel online
Hotels leave you disconnected from the city and its culture.
No easy way exists to book a room with a local or become a host
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PROBLEMCostumer Segments |
To date, tens of millions of travelers have chosen Airbnb to experience cities not as
tourists, but as locals.
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PROBLEMCostumer Segments |
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PROBLEMCostumer Segments |
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Two-sided market
Costumer Segments
People that are looking for places and people that are willing to rent out theirs.
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Two-sided market
Costumer Segments
People that are looking for places and people that are willing to rent out theirs.
2 Billion +
560M84M
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Airbnbs Tbilisi
Costumer Segments
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Airbnbs Tbilisi
Costumer Segments
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Myhome Tbilisi
Costumer Segments
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Airbnbs Tbilisi
Costumer Segments
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Channels and customer relationships
How do you reach customers? How do THEY want to be reached?
Craigslist’s integration
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Channels and customer relationshipsHow do you reach customers? How do THEY want to be reached?
Advertising print / display / social paid advertising
Referral (AKA word of mouth)
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Channels and customer relationshipsHow do you reach customers? How do THEY want to be reached?
Advertising print / display / social paid advertising
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Competition
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Competition
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Competition
How Airbnb Became a Billion Dollar CompanyAwesome design? Excellent idea? Technology? Just dumb luck?
?
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Competition
How Airbnb Became a Billion Dollar CompanyAwesome design? Excellent idea? Technology? Just dumb luck?
Our Answer: Craigslist Spam!
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Competition
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Competition
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Competition
Craigslist Spam!
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Competition
Craigslist Spam!
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Competition
Craigslist Spam!
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Competition
Craigslist Spam!
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Competition Craigslist vs Airbnb
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Competition Craigslist vs Airbnb
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Competition
Craigslist vs
Network/Marketplace
Infrastructure
Network/Marketplace
Technology infrastructure
Data
Data
Technology infrastructure
Network/Marketplace
Early Airbnb Airbnb Today
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Key resources
* Digital: Online platform
* Skilled Employees: well-networked founders,
tech people & country managers
* Financial: $2.39B in 8 Rounds from 32 Investors
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Key activities
* Trust Problem: /verification process, insurance policy, transparency.
* Traveler Retention: /promotional codes and credits to frequent travelers
* Country Legal Fights: /Tax law, Airbnb Low
“The Economic Impacts of Home Sharing in cities around the world”
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Key Partners
$20 000 Funding, Network, Advisers
Sequoia Capital
* Investors: /$2.39B in 8 Rounds from 32 Investors
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Key Partners
* Investors: /$2.39B in 8 Rounds from 32 Investors
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Key Partners
* Photographers: /Freelancers 2,000 +
The photos were really bad. People were using camera phones and taking Craigslist-quality pictures. Surprise! No one was booking
because you couldn't see what you were paying for."
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Revenue Streams
* Commission from Property Owners (Hosts)
* Transaction fee from Travellers (Guests)
Revenue model: How Airbnb makes money?
10.6M $20 $200M
A 10-15% commission on each transaction
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Revenue Streams
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Cost Structure
* Technology: /programming, payment processors
* Marketing: /ads, lobbyists
* Sales: /country managers/business development
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The future of Airbnb in cities
Costumer Segments