Airbnb Business Model: Analyzing Market Position and Growth
“Airbnb is the Best Option”
Welcome and Presentation Objectives
Good morning everyone and welcome to this presentation on Airbnb. Thank you all very much for coming here today. My name is Michelle Romero and, as some of you know, I am responsible for the Management and Analysis of Tourism Trends Department and I have been working for Airbnb for 8 years.
Airbnb is a San Francisco-based company, founded in 2008. Airbnb is a community marketplace that publishes, advertises, and reserves budget accommodation in more than 190 countries using online services. It is based on the “Bed and Breakfast” model, which is where the “bnb” comes from.
I would like to take this opportunity to explain the purpose of my speech. It is to present the business model and defend its position in the market. The main goal of our model is to become an indispensable part of a trip.
My talk is especially aimed at students pursuing a double degree in Business and Tourism; it will be beneficial for you to understand all the accommodation opportunities.
I’ve divided my talk into four main parts:
- Firstly, I will explain the target market and the present situation of the company with a SWOT analysis.
- Secondly, I will contrast Airbnb with the main competitors.
- Thirdly, I will outline the results of the company with a line graph and a pie chart.
- To sum up, I will end with a summary.
My presentation will last around 10 minutes. Please, if you have any doubts, I would be glad to answer any questions at the end of my talk.
Target Market Segmentation and SWOT Analysis
Defining the Airbnb Target Market
Now let’s move to the first point, which is about Airbnb’s target market. Airbnb’s users are divided into two market segments: travelers and hosts. The target market for Airbnb users usually involves travelers looking for a spacious and comfortable place to stay. The other target market segment is hosts. These include owners or renters who are willing to rent out their places. The reasons vary as well. Whatever the reason, all hosts are looking to list their current place on Airbnb.
SWOT Analysis: Internal and External Factors
Now, we continue with the SWOT analysis. This identifies the strengths and weaknesses of the service, and the opportunities and threats it faces. The former are considered internal factors, and the latter are external factors.
Strengths of the Airbnb Model
Airbnb is recognized as a much cheaper alternative to hotels. Prices are highly competitive. On our webpage, clients may browse and choose the perfect place according to their budget. To help make their decision, they can check the ratings provided by previous guests. This system is crucial for building and maintaining trust within the Airbnb community.
Airbnb isn’t just about saving money, it’s also about experiences. Picture this: in a hotel, every room is basically the same—they have the same TV set and side table, the same grey carpets and white walls. Airbnb is different: rooms and houses are unique. This uniqueness is one of the reasons why the company is easily expanding worldwide.
Weaknesses and Regulatory Challenges
But I have to talk about weaknesses too. Airbnb faces problems stemming from housing laws and regulation violations in some places. Hosts are paid for offering their rooms for a set time. It seems like easy money, and who doesn’t want quick cash? That way of thinking is leading people to offer up rooms and guest houses in violation of local housing laws. Meaning, they are not legally allowed to do so, but they list their places for rent anyway.
Opportunities for Growth and Legalization
The next factor is opportunities. Cities are increasingly favoring Airbnb. San Francisco, for example, has changed its housing regulations and laws. Now, Airbnb listings are legal. Communication between guests and hosts is easier now than ever. Airbnb offers a mobile app. Trust is the key to our business success.
Threats: Lawsuits and Competition
The last factor of SWOT analysis is threats. Currently, the company is dealing with a number of lawsuits worldwide. Hosts are also facing legal repercussions (fines) for hosting illegal lodgings. Generally speaking, the biggest threat for everyone involved in this business is the failure to follow housing protocols. Also, the competitive landscape is growing.
And that’s the end of my first part.