AirbnbThe World is Yours Group 11

Group members : Yu LuRui XuYu TangXinsu NiuYixin YangYidai WangM. Ashfaq Tiwana

• Founded in 2008 by Brian Chesky and Joe Gebbia

• A trusted marketplace for people to list, discover, and

book unique accommodations around the world

• Operates in 192 countries

• By April 2014, approximate valuation is $ 10 billion

Airbnbintroduction

introduction

Airbnb• Customers are categorized as hosts and guests

• Unique user profile for safety and evaluation

• 6-12% commission of guest payment and 3% of what

the host receives

• Unique idea attracted investors

Our Service Idea“One-Stop Tourism Solution”

1

Aim One

2

Aim Two

To provide customers a comprehensive tourism solution, through a single platform, while focusing on customer’s convenience and safety

To rebrand Airbnb, by providing positive customer experience (valuable lifestyle) and differentiate it in the market by value added features which will lead to achieve higher profits

How it Works

By expanding operations/partnerships to:

Individual car owners

Private car rental firms

Local tour agencies

Airbnb and Innovation

Supplementary Service Innovation

- Addition of new service by providing pick and drop facility, car (transport) and

travel agency

Airbnb as a Self Service Technology

- Guests (customers) will have ultimate form of involvement

- Will lead to time and cost saving, flexibility and higher perceived level of

customization

- May cause stress and anxiety but simple steps and memorable experience will

overcome this issue

Airbnb FlowchartOnline booking- Customer selects travel package

Pickup- Choice of car

Check-in- House, VillaApartment

Check-out- Dropping facility

Travelling- Choice of car

Tour guide- Guide package

Airbnb Flower of Service

Target market

21.2% 49.5%

- Middle class budget travelers

Cost Savings of Staying at an Airbnb vs. Hotel

Entire apartment A private room

Hotel vs Airbnb Prices by City(NY)

Positioning Map (a)

Positioning Map (b)

Airbnb Positioning

Breadth of Service Offerings

Potential

Fully Focused (Service and market

focused)

Unfocused (Everything for everyone

Wide Narrow

Numbers of Markets Served

Few

Many

Original positioning: - Narrow breadth of service offerings Few numbers of markets served

New service positioning:- Wider service-offering breadth Larger market served

Pricing Pricing in general

Cost-Based Value-Based Competition-Based

• Set prices relative to financial costs

• Activity-Based Costing

• Pricing implications of cost analysis

• Relate price to value perceived by customer

• Monitor competitors’ pricing strategy

• Dependent on the price leader

Car-owners √ √

Tourism agencies and car rental companies

√

Value created

- Margins

- Trade power

- Customer loyalty

- Brand extension

- Improved efficiency

- Wider customer base

- Partners relationship

The company

- Unique experience

- Convenience

- Safety travel

planning

- Lifestyle building

- Social networking

etc.

Customers

- Economic growth

- Job opportunities

Government

- Customers Volume

- Economic profit

- Company reputation

etc.

Local partners

For Stakeholders :

Value creation

Value Co-creation

CRM

HRM

Opportunities for value creation of Airbnb

Desires of travel

• Holiday plans• Social networking• Recreation• Fresh experiences

Travel Plan

• Destination companion

• Transportation means

• Accommodation• Travel agencies

Decision making • Destination• Travel partners• Transportation• Accommodation

• Providing website information

• Improving brand awareness

• Promoting communication with consumers

Cust

om

er

pro

cess

es

• Effective communication with consumers

• Explanation of services

• Customize service packages

• Advertising sale

Enco

unte

rsSupplie

r pro

cess

es

- Intensive advertising- Email marketing- Attractive website

- Sending emails - Word-of-mouth

- Easy sign-up system

- User friendly booking system

Preparations

• Paying travelling fares

• Applying Visa• Changing currencies• Packaging luggage• Downloading Itinerary

• Traveling• Accommodation• Sight-seeing

Follow up • Feedback

recommendations • Accounting

expenditure

• Sending confirmation emails

• Sending reminding messages

• Contacting hosts, drivers and travel agencies

• Solving conflicts among different parties

• Aftersales services

• Offer feedback bonus

• Dealing with complains

During the Journey

- Transparency of travel information

- Connecting and coordinating different parties

- Feedback systemReward system

DART model and Co-creation

Co-creation of value

Keep Value-in-use

Dialogue• Interaction between Airbnb and

customers• Customer-tailored service

Access• Co-design and co-

produce of open service platform

Risk Assessment• Building strictly

qualified partnership with the third parties

Transparency• Clearly marked prices • Effective feedback system• Supervise the value creation

processes

Objectives of value Co-creation

Increase Customer Loyalty

Increased purchases and account balances

Reduced operating costs(Fewer operation mistakes)

Customization Bonds (Discount membership card, private coupon, exclusive Airbnb games on the app stores)

Referrals to other customers(positive word-of-mouth)

Price premiums(long-term customers willing to pay regular price)

Human Resource Management

44%23%

Recruit and retain the best employees for each job

Train and motivate them to work well together Create, deliver specified service to target customers

Achieve both productivity & customer satisfaction

Thank you

References

Airbnb (2014), What about Airbnb?, [Offical Website]. (URL httpshttps://zh.airbnb.com/)

National Statistics (2014), National Travel Survey statistics,[PDF]. (URL https://www.gov.uk/government/collections/national-travel-survey-statistics/)

Airbnb (2014), What is the Airbnb Valuation? [Online]. The Wall street Journal

Tang.Y (2015), What is flow chart. [Online]. (URL http://blogs.warwick.ac.uk/yutang/)

Lovelock. C & Wirtz. J (2011), Service Marketing, People, Technology & Strategy, 7th edition. Pearson. (URL https://zh.airbnb.com/)

Altucher. J (2013), How can Airbnb’s services be improved? [Online]. (URL http://www.quora.com/How-can-Airbnb-be-improved)