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Airbnb Presentation

Transcript: Disrupting Innovation: A Case on Airbnb Inc. Lim, Camille V. THANK YOU! Introduction staying away from strangers. never give out personal information. NEVER ENTER THEIR HOMES especially if you don't know them. Online Connection Now, we don't only see them. We look for them and make our information available. More Interaction Experience Memories Sleep Industry Hospitality Industry Digital Transactions Digital Innovation Impact Measurement OTAs and Tech Based Companies Sharing Economy Sharing Economy collaborative approach to acquiring goods and services, and today, it became a huge part of the overall economy Collaborative Economy Virtual Matchmakers Internet Based Platforms Tech companies provide the interface between providers and consumers, connecting those in need with those who have extra. (Duvigneau, 2021) Accommodation Market Larger Facilities Hotel Motel Bed & Breakfasts usually a large, enclosed building with hundreds of rooms across multiple floors, while a motel has one or two floors with outdoor room entrances expansive buildings with hundreds of rooms across multiple floors reception or lobby area with concierge, bell man and other hotel staff confined to locations close to roads and highways, often outside of cities but along popular tourist routes. typically designed for short stays continental breakfast is not offered, but they may have a quick, basic breakfast with foods like hard-boiled eggs, bread and cereal. much smaller, usually where owner-operators offered a couple of rooms within their home. cozy, home-like ambiance personalized, yet quieter atmosphere many are in rural areas great allure and ambience for guests experiences Personalized Facilities Getting to Know Airbnb Inc. AIRBNB INC. Air Bed and Breakfast Champion the Mission Be a Host Simplify Every Frame Matters Be a Cereal Entrepreneur Embrace the adventure Nathan Blecharczyk Co-Founder and CSO Brian Chesky Co-Founder and CEO Vision Belong Anywhere Mission help create a world where you can belong anywhere and where people can live in a place, instead of just traveling to it. Core Values Joe Gebbia Co-Founder and Chairman of Airbnb.org sense of belonging and global presence Prevailing Strategies of the Company Trust By Design Design Innovation Peer-to-Peer Review Strategy Analysis Strategy Analysis External Analysis PESTLE ANALYSIS 01. POLITICAL Unregulated Housing Laws Impact of Political Conflicts / Mix of Politics and Brand Values in Business Operating Under a Non-Licensed Market 02. ECONOMICAL Host and City Benefits Home Sharing Wealth Generating Business 03. SOCIO-CULTURAL Sense of Belongingness New Experiences Social Media Reach Among People and Referrals Attraction Community Building Culture PESTLE ANALYSIS 04. TECHNOLOGICAL Technology advancement Artificial Intelligence 05. LEGAL Nation Laws/City State Ordinances governing hotels and apartment leases 06. ENVIRONMENTAL Benefits of Home Sharing Internal Analysis TOWS MATRIX Alternative Courses of Action ALTERNATIVE COURSES OF ACTION ACTION REVIEW COURSES OF ACTION " Final Reco TRUST PEOPLE LONG TERM INVESTMENT TECHNOLOGY PLANET TAKING ACTION IMMEDIATELY NOW BETTER AIRBNB ENSURING THAT THEY ARE NOT JUST THINKING ABOUT THEMSELVES BUT THE IMPACT OF THEIR ACTIONS Implementation IMPLEMENTATION PLAN Key Strategic Issues Key Strategic Issues Key Strategic Issues FOCUS Evolving Preference of Consumers Publicity and Customers Feedback and Market Expansion Limitations Airbnb Inc. How can Airbnb continuously attract potential customers given the ever-changing preference of consumers? How can Airbnb solve the issue of addressing negative feedback. Including, external press releases and statements from competitors and local government? How can Airbnb expand to more locations given that each country has many repercussions in many aspects whether external or internal?(Ex. Legal and Political Issues)

Airbnb Presentation

Transcript: The Airbnb Model Example in 3 mins ! Airbnb Business Model Airbnb Business Model Make the asset work for you ! Value Propositions Value Propositions What value does Airbnb deliver to the customer? - a trusted brand for both guests and hosts - quality review system by the Airbnb community - trust and familiarity to reduce social uncertainty - creating a sense of community Which one of Airbnb's customer’s problems are we helping to solve? - to balance the supply and demand for temporary housing. - more affordable option for guests - opportunity for income and usage for unused property for hosts - match making tool, both get what they want almost instantly, booking confirmed after 24h. What bundles of products and services are Airbnb offering to each Customer Segment? - Airbnb benefited from first mover advantage through novelty, lock-in, complementaries and efficiency - for GUESTS: easy search for a suitable accommodation, affordable stay and easy cancellation - for HOSTS: background check via previous reviews, 3rd party support Which customer needs are Airbnb satisfying? - for GUESTS: customization due to variety, more value due to affordable price - for HOSTS: risk reduction (insurance ), convenience (one platform), increase appeal of property "On the surface, what people come to Airbnb for is a new way to travel, but below the surface, what they find on Airbnb is connection." - Brian Chesky Customer Segments Customer Segments Creating value for whom? Multi-sided platform model with multiple customers: hosts and guests Most important customers? - Hosts - Guests Market Segmentation by behavior, geography, demography, and psychography Customer Relationships Customer Relationships What type of relationship does each Customer Segments expect to establish and maintain with them? Co-creation - manage interaction and disputes between hosts/experience guides and guests - manage interaction and disputes between Airbnb and hosts - manage interaction and disputes between Airbnb and guests How are they integrated with the rest of our business model? Customer segments - CS need to be labeled in order to establish customer relationships. Value Propositions - Airbnb's value added services being website/app usability and customer support are heavily linked to the strength of the customer relationships. Channels - Channels are linked to the website/app and customer support, which are indirectly linked to Value Propositions. Therefore the quality of the (digital) channels are strongly related to the strength of the customer relationships with Airbnb. Channels Channels Different channels serve different purposes for Airbnb: Transactional channels Marketing channels Paid vs free channels: Paid channels: Google ads, key campaigns Free channels: email, social media The importance of social media: Creating a community Cost efficient Falls in line with users' routines Channel Phases 5. After Sales How do we provide post-purchase customer support? 4. Delivery How do we deliver a Value Proposition to customers? 1. Awareness How do we raise awareness about our company's products and services? 2. Evaluation How do we help customers evaluate our organization's Value Proposition? 3. Purchase How do we allow customers to purchase specific products and services? Revenue Streams Revenue Streams ( The Money) Value guests - Cheaper prices, cultural proximity, and more amenities than hotels Value hosts - Monetizing their properties Two fee models - Split-fee model - Host-only model Payment methods - Guests are source of cash flow - Credit cards, electronic payment and iDeal - Secure payment

AirBnb Presentation

Transcript: Student: Andrei Cazacu 07/06/2017 Sharing economy and the AirBnb case Introduction INTRODUCTION What these companies have in common? Online companies with no inventory. Collaborative consumption vs. production and consumption. Several companies that are expanding (incl. Airbnb) and disrupting the industry. New facile work for employees (freelance). Option for decreasing waste. Sharing vs. traditional economy Sharing vs. traditional economy Video - Sharing economy Video - Sharing economy AirBnb disrupting the hotel industry THE AIRBNB CASE Founded in 2008 as a start-up. HQ: San Francisco in USA. Available in 65.000 cities and 191 countries. Different types of acommodation. Homes, experiences and restaurants. Living as a local - full experience. Over 1.2mil listings and 35mil guests. Based on the experience in mass tourism. Vs. Traditional The business model THE BUSINESS Ansoff Matrix Ansoff Matrix Big investments in their own systems - to make the process easier, to hire photographers to visit and check apartments, hire talented employees. Internet-based company - global access for hosts and customers. Marketing as one of the main drives - social media, word of mouth. Expansion through the users. Working with big data and AI. Regulations as a problem - tax problems and pension schemes for freelancers. International growth through internal growth International growth through internal growth Acquisition of Spanish start-up Trip4Real - located in Barcelona Expansion by integrating activities and tours as part of AirBnb company. Synergies between companies - freelancers can create activities. More facilities for customers to live as locals. External growth External growth SUMMARY PROS: Generally cheaper than a hotel. More space, less price, options for rooms/apartments. More facilities/home facilities included. Unique - live like a local - experience. Opportunities to earn money out of commodities. Free marketing for the segments. No need to purchase the buildings, apartments. Review-based and local visits to assess the hosts. CONS: High marketing costs for the business. Slow booking process for customers. Cancellations for customers. Pensions and legislations for the freelancers. 74% of AirBnb are properties outside of the main hotel districts. 81% of hosts share the home in which they live. Last video How AirBnb went global

Airbnb Presentation

Transcript: Vidhita, Preet and Nishant Reservation Statuses New Pending Accepted/Denied/No longer possible Request Retracted Pending Verfication (0-1)/ Failed Verfication Checkpoint (12) Awaiting Payment (24) CBH/CBG/CBA/CBA* Password Problems Email and password, OR through a Facebook, Google+, or Weibo Macro: 1. Account :: Password - HIW User Issue: Account :: Password Be sure that the email address being used to log in is registered correctly Does the user have more than one Airbnb account? Did the user sign in to their account previously using Facebook, Google+ or Weibo? Has the user enabled Two-factor authentication? Two step authentication Google authenticator If the user does not have access to their smartphone in order to provide the additional authentication, and requests we disable two-factor authentication on their behalf: Fully authenticate user using the Account Authentication workflow: If unable to authenticate via phone or email, do not proceed. Become User by clicking the drop-down arrow in the top-left corner of the user profile picture in Nova Profiles. Navigate to Account > Security > Two-factor authentication, then select Set two-factor preferences, which will then provide the option to disable this feature. Special Case Pricing Categories Hosts have several options to set up their pricing 1. Customizing seasonal prices 2. Long-term weekly/monthly discounts 3. Adding additional guest fees, cleaning fees and a security deposit. 1. Dynamically set their price according to demand 2. applies to all future open nights on a host's calendar 3. the probability from the booking probability model, and comes up with a mathematical formula that translates that probability into a price. 4. Location quality,Features of the listing (e.g. wifi), Capacity, P2/P3 Impressions, Demand/supply in the market, Availability of surrounding dates. Smart Pricing Smart Pricing Not available for co-host, whiteglove people and host from spain To turn on Smart Pricing: Go to Your listings on airbnb.com and select a listing Click Pricing at the top of the page Next to Nightly price, click Edit Next to Smart pricing, click the circle to turn on smart pricing Enter a minimum and maximum price Click Save Not available for co-host, whiteglove people and host from spain Weekly and monthly discounts override smart pricing. Custom pricing (edited directly on the calendar) overrides smart pricing. However, if custom pricing was set before Smart Pricing, the custom pricing will need to be set again. Weekend pricing does not override smart pricing. Airbnb Update Barcelona Listing Update Around 3000 listings will be deactivated in Barcelona on 1 June 2018. Hosts will be notified on the 30 May 2018 letting them know that their listings will be automatically switched off within 48 hours. Listings will have a "Cannot Be Activated" flag—user accounts have been flagged by Tax & Legal. The city Hall of Barcelona has issued an order to cease to rent this property. As such, the listing is now in violation of Airbnb Terms of Service. Why is my listing being removed? Will you be deactivating my Airbnb account? No. Only the listings we have specified in the email will be deactivated. No, Be reasonable! Will my upcoming reservations be cancelled? Thank you :) Thank you

Airbnb presentation

Transcript: Airbnb: Is it a Worthy Investment? - Piroska Horvath, Greg Houston, Abbey Mullan, Miracle Obih, Ailey Porter, Humera Rafique Interactive Activity Interactive Activity Questions for the audience Your thoughts Initial thoughts when considering hotels/accommodation? Airbnb? Customers of Airbnb? My experience with Airbnb My Airbnb Experience Website / Booking = Immediate access to information on accessibility, availability of calender and price - quick and convenient. Misrepresentation? Stay = Location, apartment, privacy, value for money What is Airbnb? What is Airbnb? Facts American vacation rental online marketplace Hosts- rent out houses, lodges etc Customers- pay for accommodation Platform for connecting hosts and guests Income from commission on bookings Founded: August 2008, San Francisco, California, United States Revenue: 4.7 billion USD (2019) San Francisco in October 2007, roommates Brian Chesky and Joe Gebbia idea of putting an air mattress in their living room Turning it into a bed and breakfast Facts 150 M+ total users on AirBnB 2M+ people staying in an AirBnB every night 5M+ global AirBnB listings worldwide $101B AirBnB valuation after its initial public offering 4M hosts worldwide Operating in more than 220 countries Value Proposition Value Proposition Affordability Convenience Unique experiences Strong customer relations Privacy Investment Approaches Investment Strategy Rational Finance Rational vs Behavioral Our Investment Values Rational Finance Rational investment Profit orientated Growth orientated Risk averse High risk high return Fact and analysis based Behavioral Behavioral Finance Not always risk averse Bias Social & ethical Influence Consciousness Emotion Unpredictable behavior What kind of Investors are we? We Considered: -Financial performance AND - Ethical - Value based performance AND -Broader Market & Company Analysis Porter &Kramer (2007) : Inherent link between good CSR practices and competitive advantage Finances The company has seen annual net losses every year since its launch. Although revenue has been increasing, so too have associated costs. Slow Revenue Growth . Finances Financial Year 2020 Nights and Experiences Booked: 193.2M (-41%) Y/Y Gross Booking Value: 23.9B (-37%) Y/Y Revenue: 3.4B (-30%) Y/Y Net Income/(Loss): 4.6B Improvements in our cost structure enabled us to reduce our operating expenses on a year-over-year basis in all categories. Financial Year 2020 Financial Future Financial Future Hope for the future: Predicted travel boom after pandemic. More than half of those surveyed (54%) said they either already booked, are currently planning to travel, or expect to travel in 2021 Stock Market At $180 a share, Airbnb trades at 30 times its trailing 12-month revenue. High cost of shares. IPO price of $68 a share Airbnb Values Champion the mission Be a host Embrace the adventure Be a cereal entrepreneur "Every frame matters" Diversity Values CSR Promoting positive environmental impact Employee Volunteering (4 hours of paid time off purely for this) 48.94% of workforce are women (goodbye gender roles) Open house program --scheme has helped more than 25000 people Stand up for their employee's rights surrounding race and gender identity CSR Ethical Issues Cameras in accommodation (measures should have been taken) More recently, it was discovered that more than half of owners were willing to host guests last month - did not seek valid reasoning Prioritizing profits over well-being of customers Continued advertising throughout the pandemic Cheap prices affecting locals No rules or regulations in "private properties" Ethical Issues Why are Ethics Important? IMPORTANT Companies who maintain a strong ethical identity usually have a higher degree of stakeholder satisfaction (growth) Being ethical ties into a company's long term profitability Lack of ethics can be critical to company (Canada Goose example) Studies show that 82% of consumers believe ethically aware businesses outperform competitors with a lack thereof Market Analysis Market Analysis Competitive Analysis HomeAway, FlipKey, HouseTrip Rapid disruption - $30bn worth in first 8 years (HomeAway = $4bn) Technology - competitive edge to traditional hotels? (3 click, quick booking process) Milennials. Tech knowledge, low cost budget, experiences (Don't go there, live there!) Framework: Porter's 5 Forces Overview of 'safety' of Airbnb 2 main competitors - regular hotels + other online intermediaries Possible competition from partnerships Airbnb can also do this (travel packages, Uber) Industry Rivalry Industry Rivalry: Medium Bargaining Powers Bargaining Power of Suppliers - Low Alternative - Empty apartments Bargaining Power of Buyers - Low Lack of competition Couchsurfing.org Amazon and Craiglist may join? (legal + social) Threat of Substitutes Threat of Substitutes - Medium/ High Threat of New Entrants - Medium/ High Platform could be replicated Strong customer base Another competitor would need lower prices or another

Airbnb Presentation

Transcript: Welcome Airbnb: Superhost 101 1. History of Airbnbs 2. Why Airbnbs? 3. Why not Airbnbs? 4. Things to Monitor 5. Income/Fees 6. Best Tips 7. Reviews 8. Q&A 9. Tours History of Airbnbs Strengthened the idea of short-term rentals. 4M+ hosts worldwide 6M+ active listings 100,000+ cities worldwide History of Airbnbs #1 Brian Chesky, Joe Gebbia and Nathan Blecharczyk Co-founders and formers housemates who were struggling to pay their rent and came up with the Airbnb concept as a way to make extra money. Started as Air Bed and Breakfast, in their living room with air mattresses and provided breakfast. In 2008, they launched their website and by 2010 attracted multiple investors. The company went public in 2020. #2 Expansion Today, Airbnb is one of the largest home-sharing platforms in the world, with millions of listings in over 220 countries and terriories. New products and services have been recently launched to include Luxe, which offers high-end homes and unique travel experiences, and Adventures, which allows travelers to book multi-day experiences with local guides. Why Airbnb? Why Airbnb? 1. Great income ($$) 2. Semi-passive income ($) 3. Less wear and tear 4. Tax Shelter Why not Airbnb? 1. Upfront Costs 2. Maintenance 3. On-call at all times 4. People 5. Cleanings 6. Expenses Why not Airbnb? Things to Monitor Things to Monitor HOA Rules/Regulations 30+ Stays (Squatters) Break-ins Regulates expenses Hotel competitiveness Trends and designs Local Guests Parties Guest count Income/fees Income/Fees Always create LLC (limited risk) Host Fee (Document EVERYTHING) Taxes Best Tips BEST TIPS Provide toiletries, coffee, bottled water Vendors on-call Invest in manuals Air care Assign a co-host Professional cleaner Reviews Reviews (Superhost) Reviews are VERY important! Scheduled cleanings Reply in a timely manner Standardized check-ins/check-outs Provide clear and accurate instructions Address all issues Cancellations Questions/Answers Q&A What questions due you have???

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