Airbnb.comFind a Place to Stay

Team- 4:Sanjay Kumar | Sarika Prasad | Sridhar Sarnobat | Bhavani Yella

How Airbnb works• Marketplace for unique

properties as oppose to traditional hotels, motels, B&B

• Airbnb works as a mediator between two parties, handles communication, payment between host and guest

• Diverse listings such as airbeds, tree house, castle, a room or entire house, or traditional places such as hotel room

Listing Categories• Surfing Turfs

• Frank Lloyd Wright houses

• Designers Retreats - By Yves

• Private islands

• Royal Treatment

• Secret Gardens

• Snow Domes

• Fashion Forward

Worldwide Listings

Facts• Founded in 2008

• Based in San Francisco

• Market place for unique properties

• Hosts list their property for free

• Travelers book the property matching their requirement

• The Most Amazing and Absurd Places For Rent - Forbes

Website

Website Effectiveness• Home Page Clarity

• Clear Call to Action

• Search Results (SEO)

• Engagement

• Web 2.0

• Active Spaces

Use of web 2.0 elements.• Travelers post reviews after staying

• Property owners are responsible for marketing their listings

• Travelers create their profile including photo and get reference from friends

• Owners choose who get to stay

• Over 168 million Social Connections

94,000+ followers

152,000+ Fans

4,895,985 video views

Mobile Presence• Airbnb app available in App Store

and Anroid Market

• Mobile-friendly site at http://m.airbnb.com

• Easily find place at last minute

• Accepts bookings using credit card

• Convenient access to itinerary and host details

• 26% Airbnb traffic from mobile (as of Sept 2012) compared to 12% a year ago

• 1 million iOS downloads

Business Model• Free to list

• Fee-Per-Transaction model

• Charge host 3% of rent amount

• Charge guest 6-12% depending on the rent amount

• higher rent amount, lower Service Fee

Business Model

MoneyRoomforRentAirBnB

Visitor

Matchmaking Service

Matchmaking Service

Renter

3% commission on booking Community

6-12% Service fee on reservation

Target Market• Anyone who has place to

rent

• Anyone looking for a place to stay

• Early adopters, free spirited, ready to experiment

• Average age 35 - 55

• By geography: Multiple continents

Reach their target customers • Offline advertising - Press Coverage

• Online advertising – Google Display ads for Specific geographies

• YouTube videos

• Facebook signups by friends

• Targeted ads travel websites

• Travel magazines

• Own employees

Growth Metrics• 10 million nights booked since founding As of July 2012

Listings in San Francisco

Bookings Metric• Over 200,000 listings worldwide

• Over 30,000 cities , 192 countries

Key Financials• Funding

• 2010: Raised just $7 million

• 2011: Raised a $112 million round of financing

• Investors value the company at $1.3 billion (July 2011)

Competitive Advantages & threats

Strength- Unbiased peer reviews- Free to list- Low booking fee- Reach (192

countries, 30,607 cities

- Safety support

Weakness

- Trust issue (it is not easy to open up your home to strangers)

Opportunity

- $100B potential global market for vacation rental

Threat

- Business model easy to replicate - Low barrier to entry

Competitors