Airbnb - Mission, Culture, Values, USP, Competitors, Constraints before Adoption of Technology, Technological Innovations, Business Value, Value Proposition, SWOT

1. Presented by:
Group 11
Manvi Bolia
Mohdmahir Shaikh
Nancy Gupta
Nehal Jain
Nishita Arora
Piyush Hirwani
belong anywhere

2. Introduction
• Founders: Brian Chesky, Joe Gebbia, and Nathan Blecharkzyk.
• Founded in 2008, San Francisco, California.
• Services : Lodging and Hospitality
• Accessible in 62 languages across 190+countries.
• Airbnb is an online marketplace that connects travellers to local hosts of cities all over the world.
• Travellers find a home in a foreign city in exchange for rent.

3. • Hosts gives their home in exchange of rent
• They brand themselves as an online ‘travel community’, allowing guests to have a local experience in
exotic locations, at a cost much lower than any restaurant
• Offers over 7 million accommodations and 50,000 handcrafted activities, all powered by local hosts.
• Airbnb promotes people to people connection, community and trust around the world.
Introduction

4. Mission of Airbnb
Airbnb mission statement is “To live in a world where one day you can feel like you’re home
anywhere & not in a home, but truly home, where you belong.” The mission statement displays
the impact the company expects to have on the lives of its client The components of mission
statement comprise.
1.Improvement of life
2.Exceeding expectations
3.Creating a sense of belonging
Airbnb wants to focus on improving customer experience, The firm wants to do this by
customizing its services and to fulfil the general needs of its client base and host.
• Hosting and Experience
• Building relationships with its host and customers
• Responsible hosting

5. Culture at Airbnb
• Airbnb is built upon a team that is talented and at the same time intimidate each other by how smart they were.
• They have brought diversity in there organisation to improve decision making
• Instead of quitting because they were uncomfortable with each other’s intelligence, the team raised their bar and
worked hard.
• Using this method, instead of working against each other, the partners worked with each other with the support of
every team member
• Airbnb believes in shaping good judgment in individuals instead of imposing rules across the company, so the
employees are given freedom to take certain decisions and can pitch ideas.
• Airbnb’s Human Resource team pride themselves as being playful, fun, helpful and dead serious. They uphold the
company’s most important goal, which is preserving and driving the company’s culture
• “Culture is simply a shared way of doing something with passion.”
– Brian Chesky , Founder Airbnb

6. Values
Airbnb value commitment to its ambition has been strengthened for their growth. Airbnb’s core
values include:
1. To champion the mission
2. Simplify the process of staying outside home
3. Framing every matter in concern
4. Being a ‘cereal’ entrepreneur
5. Embrace the adventure for the traveller
6. They form the fundamental elements that drive the operations smoothly.

7. Airbnb USP
• Review System:- Airbnb prides itself on the fact that the review system is tamper proof and genuine.
It allows both host and guests 14 days from the time the review link was offered to submit a review.
• Affordable Housing:- Airbnb provides new way for travellers to find short-term accommodation at
better prices and authentic experience that people cannot receive when booking a hotel.
• Secure Payment:- Airbnb secure platform ensures travelers money gets to the host. While adding
security for guests, host are not paid until 24 hours after guests arrive.

8. • Synchronize Your Calendar in Real Time:- If the host property is listed on more than one platform, its
management software helps you to synchronize your calendar to avoid double booking to manage
rentals listed on multiple channels within one dashboard.
• Unique Accommodation:- Airbnb give unique experience to their guest which is far more distinctive
than hotels. Their listings not only include houses but also other different experience like boats, igloos,
treehouse and any other kind of house that can be found.
Airbnb USP

9. Competitors
• FlipKey:- FlipKey is a vacation rental website like Airbnb. When you venture into less popular vacation spots
their inventory choices look weak when compared to places like HomeAway or Airbnb. FlipKey charges extra
fees on top of the nightly rate like other competitors. In 2016 the company listed more than 300,000 properties
in 179 countries.
• HomeAway:- It is another vacation rental website. They have a strong inventory of nearly a million properties.
Unlike Airbnb, HomeAway doesn’t offer any shared or private rooms. To list on HomeAway, you need to list an
entire property. HomeAway currently offers about 2 million listings in 190 countries.
• VRBO:- Vacation Rental By Owner offers worldwide accommodations from people willing to rent out their
space which is similar to Airbnb. And apart from the selection of rentals on its site, VRBO rents entire homes
which means that it only lists larger spaces.

11. Constrains Before Adoption of Technology
• Unavailability of search & discovery option for travellers.
• Messaging & communication barriers.
• Global payments issue.
• Trust & safety issues of travellers.
• Reliability & scalability problems in competitive
environment.
• Problem of low consumer expenditure.
• Lack of Customer Intimacy.
• Management of huge data base of users and hosts.

12. Technological Innovations
• Search and Discovery: Airbnb uses AI technology for search and discovery. It also uses data science
for consumer searches and Natural Language Processing for customer convenience.
• Messaging and Communication: Airbnb uses technologies like push notifications, Twilio and real
time chat for support.
• Global Payments: Airbnb has tied up with various digital payment platforms(PayPal, Google Pay,
Apple Pay, etc.) along with Braintree, which is their main payment gateway, to provide easy and
secure payment options to their users.
• Trust and Safety: Airbnb ensures that the reviews posted are verified and genuine, verified images,
Super host certification & deletion of private messages of the users.

13. • Growth and Customer Experience: Airbnb has used Referral Program and Digital
Marketing.
• Reliability and Scalability: Being a cloud-based application Airbnb uses Amazon RDS
database, Redis, and big data tools like Air pal, Presto and Druid.
• Pricing: Airbnb uses smart pricing for pricing it products and ensures that customer
gets best price for their experience.

14. Business Value
Airbnb uses an Aggregator Business Model that runs with the help of online
platforms
• That connect each component in the model.
• Biggest assets are the individual components and the hosts
• Minimum operating cost and huge capital is not required
• Customers get a different experience by staying close to the locals
Airbnb’s Revenue comes from two major sources:
• Commission from hosts: Airbnb takes 10% of the payment amount
as commission from the host.
• Transaction fee from travellers: travellers are charged a 3% fee for
transaction. This amount adds to the Airbnb revenue.

15. Value Proposition
• Travellers stay in a homely environment in a foreign place.
• The stays are usually cheaper than hotels which is great for travellers who are
on a budget.
• The Airbnb website gives an opportunity to browse through numerous living
spaces before choosing one.
• Travelers get the option of rating and giving feedback.
• This same option is given to the hosts as well and they can choose who can
stay at their homes.
• Airbnb also provides insurance to the listed houses.

17. Airbnb wants to take over the hotel business and become better at providing services than hotels.
They are aiming at serving 1 billion travellers annually by operating in more potential areas
worldwide. Here are some of the changes that Airbnb wants to make in the near future:
• New property types. Airbnb is going to add four new types of properties for the travellers such
as vacation homes, unique B&Bs, and boutiques. This is an addition to the previous home
types.
• New tiers. In this section Airbnb is going to add Airbnb Plus which is going to have verified
hosts and guests.
• Airbnb collection. They will also be adding new types of homes for every occasion. These
occasions will include social gatherings, weddings, honeymoons, etc.
• Investing back in the business. Airbnb wants to improve the existing business plan and wants to
redesign the Airbnb fee structure as well.
Future Plan

18. THANK YOU