COMPANY PROFILE -Airbnb
Business Sector :Hospitality
Operating Geography :United States, North America, Global
About Airbnb :
Airbnb is an online lodging marketplace founded in 2008 by Brian Chesky, Joe Gebbia and Nathan Blecharczyk. It is headquartered in San Francisco, USA. The company has 7 million places of accommodation in 220+ countries. The accommodations are all managed by local hosts who sign up on the platform to provide rooms on rent for people looking for lodging. The company basically acts as a broker that receives commission on each booking. To cut down the high cost of rent in San Francisco, the current founders and former roommate Brian Chesky and Joe Gebbia came up with the concept of setting an air mattress in their living room transforming their apartment into a bed and breakfast (a lodging that accommodates overnight stay and breakfast). Thus, Airbnb, an abbreviated version of its original name, AirBedandBreakfast was formed. Today, Airbnb hosts offer millions of listings in more than 220 countries and regions and over 100,000 cities, and many of these listings are only accessible on Airbnb. It has around 6,132 employees as of early 2022.
Airbnb's USP or unique selling proposition lies in being one of the world’s largest online marketplaces for unique, authentic, and alternate accommodations. Airbnb's mission is “to help create a world where you can belong anywhere and where people can live in a place, instead of just traveling to it.” Airbnb’s vision statement reads “Belong Anywhere”.
Airbnb Revenue :
$ 5,991,760 - FY ending December 2021 (y-o-y growth of +77.3%)
$3,378,199 - FY ending December 2020
Competitive Analysis of Airbnb
Designating itself as an "Economic Empowerment Engine", Airbnb has helped millions of hospitality entrepreneurs to live their passion and monetize their spaces. Hosting more than half a billion guests till date, Airbnb has successfully promoted people-to-people connections and built a global community of trust with no space for discrimination.
Accordingly, the SWOT analysis of Airbnb manifests a discussion on the greatest strengths that the company enjoys as a competitive advantage over its competitors in the hospitality and lodging industry. The analysis further highlights the opportunities in the external environment that can be consolidated to further strengthen the assets that generate surplus cash. The SWOT report of Airbnb also confers intelligence on the internal weaknesses and external threats that the company confronts being in such a highly competitive environment.
One of the core competency of Airbnb that presents the company with an edge is its pricing model; the company is well known for its cheaper alternatives to expensive hotels. Airbnb being online-based allows travelers to compare and pick from various cheaper alternatives in their desired location. Furthermore, internal factors like strong brand reputation, global presence in 220+ countries, influential social media presence, additional features on website to enhance travel activities, unique and appealing business concept, 24/7 customer service, etc. are some of the most exceptional strengths of Airbnb.
However certain negative experiences of customers and incidents like discrimination, theft of valuables, invasion into privacy, compromised safety, rape and murder, unhygienic lodging, unprofessional host, etc., are the weakness of Airbnb that damage the brand reputation.
Airbnb is no more just an alternate accommodation provider, the company is grabbing the opportunity to extend its business model by increasing its products and services, entering into emerging countries, developing a mobile-based application to connect guests and hosts, etc.
As the business model of Airbnb is considerably mere to replicate the competition threat seemingly increases. With existing players including similar features in their business models and new entrants coming up with cheaper services, the competitive threat is escalating in this industry.
The SWOT analysis for Airbnb is presented below in the matrix followed by detailed analysis:
| Strengths | Weaknesses |
1. Variety of lodging options at cheaper price than hotels
2. Large worldwide presence built by thinking glocal
3. The local experience provided to guests is a key differentiator from other lodging options
4. User-friendly and personalized website
5. Launch of a host endowment fund
6. Introduction of aircover- a comprehensive protection plan while travelling
| 1. Controversies affecting the company’s image
2. Company is vulnerable to fraudsters who scam customers through fake Airbnb websites
|
| Opportunities | Threats |
1. Major sporting events and the Olympics partnership deal
2. China is the world’s largest sharing economy
3. Increase in the demand for non-urban destination bookings
| 1. Risk of losing identity by competing in the hotel business
2. Damage to properties by guests would upset hosts
3. The company’s business is subject to several regulations that could affect them adversely
4. Threat of major disruptions to the hospitality industry as a result of outbreaks like Covid-19 |
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Detailed SWOT Analysis of Airbnb
Strength
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Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
1. Major sporting events and the Olympics partnership deal: Major sporting events like Summer and Winter Olympics, FIFA World Cup, Euro Football Championship, Cricket World Cup etc. are huge opportunities for companies like Airbnb due to the huge influx of fans from other countries. Also, there is a high chance of locals opting to sign up as hosts in order to grab the opportunity of earning some extra money during the events, thereby increasing the accommodation options available to visitors. Airbnb has entered into a $ 500 million sponsorship deal with the International Olympic Committee for Summer and Winter Olympics and Paralympics from 2020 till 2028. This deal helps Olympic organizers cut down on event hosting costs. Also, the venues of Olympic games during this time period: Beijing (2022), Paris (2024), Milan (2026) and Los Angeles (2028) are all major rental hotspots for Airbnb. As part of this deal, Airbnb would provide accommodation to visitors, families of athletes and officials. Athletes can also directly benefit by using Airbnb to sell personal Olympic experiences and access to training regimes to their fans and earn revenue during the process.
2. China is the world’s largest sharing economy: The sharing economy has grown at a fast pace across the world in the last decade. Especially in China, which is currently the world’s largest sharing economy. Though there were disruptions due to resurgences of COVID-19 and related regulatory measures, the sharing economy in China marked a turnaround and recorded a 9.2% year-on-year growth in 2021. The driver of the Chinese sharing economy is the rising consumption by Chinese people. A good proportion of consumer spending is in the sharing economy. In 2021, retail sales of Chinese domestic goods increased 12.5% year-on-year to about $6.93 trillion. The transaction volume for China's sharing economy in 2020 touched $522.47 billion, mostly contributed by knowledge skills and medical care increase, and is further expected to grow at a steady pace of 10% annually. In 2020 the size of the sharing economy workforce reached a record 84 million. Now with broader application of 5G, artificial intelligence and IoT Sharing service and innovative consumption formats are expected to emerge further in China, and also the rest of the World. The company plans to bring 1 billion users onto the platform during the next 10 years by focusing on China and India.
The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
In recent years the lodging industry and alternate accommodation have witnessed tremendous growth due to their key features like convenient and cheaper alternatives to a hotel, cost-effective stay for business travelers, source of extra income to hosts, home away from home feel for travelers, local experience, hassle-free short term accommodation, and easy way to rent properties for a short period. Thus, the PESTLE tool is handy to study more such trends, features and influencers that impact the hospitality/lodging industry and Airbnb specifically. The PESTLE / STEEPL / PEST analysis report is a structure to examine the consequence of external factors particularly political, economic, social, technological, legal and environmental on the macro-environment that influences the business of Airbnb. The PESTLE analysis is also a useful technique to study the impact of these influencers on Airbnb’s business model, growth trajectory, its business case, and market strategy.
The political and legal factors have a huge impact on the operations of an internationally based company. Thus, Airbnb is liable to abide by various laws and regulations of all the 220+ countries that it is present in. Based on their law system, Certain European and American cities have imposed restrictions on and also fined Airbnb for violating tourism laws, having illegal hotels, etc. Airbnb is well known for a cheaper yet comfortable alternative to a hotel stay. As mentioned earlier in the report Airbnb designated itself as ''Economic Empowerment Engine'' and is also a market leader in the "Shared Economy" sector. Average local residents can easily rent out their spaces and develop extra income, especially in cities that lack hotels or have expensive hotels this alternate accommodation is definitely an Economic Empowerment Engine to Hosts, travelers and the company itself. Airbnb is well known for blending cultures, communities and societies with ease. Airbnb encourages visitors and hosts to share their stories and experiences on its website and also through various social media platforms. Social media has played a vital role in the proliferation of the company. The functioning of Airbnb totally relies on technology, as it is the biggest source to connect people globally. Technological factors like smooth functioning of mobile app and website, easy booking and cancellation options, multiple payment modes, automated replies, 24/7 customer support, strong messaging system, reliable verification and authenticating system, etc. are quintessential for the up and running of Airbnb company. Since inception, Airbnb's home-sharing idea has been considered as the most sustainable option for travel. More than 80% of Airbnb hosts have incorporated sustainable hosting techniques like utilizing green cleaning products, recycling, composting, encouraging guests to use public transports or bicycles, etc. The company also claims that by sharing resources there has been a decline in waste production, water wastage, energy consumption compared to that of hotel accommodation.
The PESTLE / PESTEL/ STEEPL Analysis for Airbnb is presented below in a nutshell followed by the detailed analysis:
| Political | Economical |
1. Mix of politics and brand values in business
2. Impact of conflict in Ukraine
| 1. Impact of home sharing on the local economy |
| Social | Technological |
1. Popularity of social media among people worldwide
2. Attraction of people to referrals
3. Empowering and engaging people by building communities
| 1. Artificial Intelligence transforming the travel industry |
| Legal | Environmental |
| 1. Legal regulations for lodging and short-term rentals across the world | 1. Environmental benefits of home sharing
2. Growing focus on ESG issues by shareholders may impose additional risks and costs on the company’s business |
On purchase the Airbnb SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed Pestle Analysis of Airbnb
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
1. Legal regulations for lodging and short-term rentals across the world: The rise of the short-term rental industry powered by Airbnb has led to an increasing number of regulations imposed on short-term rentals across the world. Though Airbnb has given various cheaper alternative accommodation options for travelers and a great source of income for property owners, the short-term rental scheme has been accused of pricing out long-term rentals and escaping the tax and regulations imposed on hotels. Various cities and countries have started passing laws to contain the spread of Airbnb and similar platforms. For instance, in 2022 the officials of Warwick proposed an ordinance to limit short term rentals units in just a few zoning districts. Similar proposals are being contemplated by officials in Pinehurst, SouthWick and New Orleans.
Environmental
This section is available only in the 'Complete Report' on purchase.
Major Competitors :
- HomeAway
- VRBO
- Flipkey
- TripAdvisor
- Booking.com
On purchase the Airbnb SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
WHY BUY THIS REPORT?
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
• Applying the fundamental evaluation models, SWOT and PESTLE analysis to assess the internal and external factors and their consequences on the company's micro and macro environment.
• The SWOT analysis is a structure, employed to evaluate Airbnb's competitive stance by recognizing its internal strategic factors like strengths and weaknesses, external strategic factors like opportunities and threats.
• Cataloging Airbnb’s innovative strategies that catapulted its position to a market leader in the alternate accommodation industry and bestowed the company with an edge over its competitors.
• The PESTLE analysis of the Hospitality industry helps to recognize its current trends and external factors that impact Airbnb’s business.
• The PESTLE / STEEPL / PEST analysis report is a structure to study the effects of external factors like political, economic, social, technological, legal and environmental, and their impression on the hospitality industry and in precise, Airbnb.
• A complete illustration of Airbnb's business model and business diversification with further categorization and review of key business segments and business case study
• Synopsis of the acquisitions, mergers, capital raising, equity transactions, alliances or partnership ventures that Airbnb consented with deal valuations to achieve its milestones, business aims, and synergies.
• Comprehensive company analysis to compile information about company profile, value proposition, revenue jumps, business model, business plans and marketing strategy.
• Understanding of Airbnb's USP or unique selling proposition, mission statement, and vision statement
• Identifying the core values, core competencies, key performance indicators and success factors that contribute to the fullness of the company
You may also be interested in other analyses of Airbnb:
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| Airbnb Porter's Five Forces Analysis |
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| Airbnb Value Chain Analysis |
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| Airbnb Covid-19 Impact Analysis |
|
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| Airbnb Segmentation, Targeting and Positioning (STP) Analysis |
|
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| Airbnb Ansoff Matrix Analysis |
|
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Check Out Analysis of Other Relevant Companies
References used in Airbnb SWOT & PESTLE Analysis Report
1. Airbnb About Us - https://news.airbnb.com/about-us/
2. Airbnb Annual Report - https://s26.q4cdn.com/656283129/files/doc_financials/2021/q4/2a413af0-3429-4317-9d3c-a71f2d6d2683.pdf
3. Airbnb’s Growth Strategy: How they attract and retain 150 million users - https://www.growthmanifesto.com/airbnb-growth-strategy
4. Security Threats All Airbnb Users Need to Know About - https://www.makeuseof.com/tag/security-threats-airbnb-users-need-know/
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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