Airbnb was founded in 2008 by Brian Chesky and Joe Gebbia, who saw an opportunity in renting out an inflatable mattress in their living room to visitors visiting San Francisco for a convention.
Source: Safalta.comThe concept subsequently expanded into a platform that provided short-term living quarters, breakfast, and a business networking platform for people who were unable to book a hotel due to market saturation. Brian Chesky approached his roommate Nathan Blecharczyk in February 2008 about launching the website AirBed & Breakfast. Nathan Blecharczyk joins as the new venture's Chief Technology Officer and third co-founder. On August 11, 2008, the official website Airbedandbreakfast.com was created. In the summer, the company serviced its first consumers in town.
On August 11, 2008, the official website Airbedandbreakfast.com was created. The company served its first clients in the city in the summer of 2008, during the Industrial Designers Society of America's Industrial Design Conference, when visitors were having difficulty locating a room to live in town. Boost your Skills by learning: Digital Marketing
Table of Content:
1) How Does Airbnb Work?
2) A Case Study on Advertising for Hosts and Audiences
How Does Airbnb Work?
Airbnb has transformed the hospitality business. Prior to 2008, most tourists would have reserved a hotel or hostel for their journey to another city. A large number of these folks are now using Airbnb. The concept behind Airbnb is straightforward: find a method for locals to earn additional money by renting out their spare house or room to tourists visiting the region. Hosts that use this platform may market their services to millions around the world while knowing that a large organization will manage payments and provide help as needed. And for guests, Airbnb may provide a more characterful location to stay, possibly even with a kitchen to avoid dining out, frequently at a lower price than hotels.
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A Case Study on Advertising for Hosts and Audiences:
Airbnb's Marketing Mix
A marketing-mix model is used to assess the efficiency of various marketing initiatives when they are combined. The basic principle the behind marketing mix strategy is to launch a product or service in the right way, at the right price, and in the right place by utilizing the appropriate promotion instruments. So, first, let us examine how Airbnb's marketing plan has been staged.
Airbnb's Pricing Strategy
Airbnb began with a straightforward pricing strategy: price your products below the market average in order to undercut hotels and make your location stand out. They realized that consumers were prepared to spend more for hotel rooms, so they battled hospitality rather than pricing. Their major goal was to give a level of familiarity, giving their visitors a home-like experience. As of today, Airbnb is recognized for offering services at a lower cost than hotel chains.
Airbnb's Marketing Strategy
Airbnb has numerous marketing platforms since it showcases its products both online and offline. The advertising is mostly aimed at local clients in order to raise awareness of Airbnb through city tours and unique experiences available on the website. Many promotions are also carried out to generate social buzz about just the Airbnb brand via social media pages and word-of-mouth. Unlike other global companies such as Coca-Cola, McDonald's, and Starbucks, Airbnb is searching for ways to sell itself locally rather than worldwide. And that is how Airbnb has devised its marketing plan.
Research Marketing Ploy: Airbnb caters to travelers looking for real vacation experiences. People who want to visit a distant country but live like a native. And, like many of you, I'm on it. The definition of a genuine experience is subjective. To me, this entails understanding the local dress code and perfecting their coffee method. It may be playing games with locals, discovering street art, or preparing a native confection for you. Airbnb's 'experience marketing' capitalizes on this distinct yearning for true discovery. It not only allows you to book vacation accommodations, but it also allows you to experience a location like a native. Take a peek at the Airbnb campaign below. The ad theme, 'Don't Go There, Live There,' along with a frank and convincing manner of discussion, calls, invites, and wraps you into the city as if it were your own. Multi-channel interventions were used to promote the campaign, including social networks, blogs, podcasts, partnerships and sweepstakes, customized social material for different nations, and celebrity interactions.
Airbnb has established a very successful business by analyzing what its clients want/need and then supplying solutions that meet those needs. They were able to engage with a portion of the travel market that thought their alternatives were quite restricted by promoting themselves as a method to experience travel rather than simply an accommodation booking engine. By providing a guarantee of security, they alleviated their host greatest anxiety, guaranteeing that they feel secure renting out their house.