Airbnb - Moving from a Global Village to a Global Home

Belong Anywhere


Today’s brew is for Airbnb,
Brew Date: 28th May 2015
Type: Served Warm – Redefine and Transform brew.


To understand the business model of Airbnb, check out the following links:

The Brew will analyze Airbnb on the following points:
a) Business Analysis
b) Improvisation to Business Strategy (Not required, the frameworks are all laid in the Business Analysis part)

a) Business Analysis:

1)  The Brand Promise of Airbnb:
Airbnb’s brand philosophy brings to life the real opportunity that exists inside the shared economy. Their brand is the poster child of modern authenticity, built on a simple philosophy of belonging.

The brand promises of Airbnb are the follows:
a) In an high opportunity & potential driven world, Airbnb offers mobility & roaming solution which can be life changing. It’s a perfect Gen Y offering given that it aligns completely with their needs of being non committal along with everlasting and unsettling pursuit of being better.

b) It induces the user to travel, explore and experience more, the global multi – variedness (by being in the skin of the place) in terms of location, culture, and lifestyles. Given that Consumers always want to pack more of the magic and defining moments when they want to travel, Airbnb extends this consumer need to the places where they travel as well.


Airbnb as well manages to turn your accommodation choice into the whole reason for going. When you belong somewhere new, you teleport yourself into a new life – and that’s far more compelling than just booking a room

c) It has created the sense of belongingness by offering the Concept of Home across. This is the most audacious and the strongest brand competence that Airbnb has been able to create. It has targeted Mankind’s most basic need to have a home universally available (Home is possibly a social place shared with few people with combination of Comfort, housing life caring and enhancing needs with levels & layers of emotions & intimacy with the animates and inanimate)

In a way, Airbnb has socialized the offering of Home where People can share it with others. And hence, it’s basically a User’s Home Social network offering to share a dwelling solution.

Good companies create good products, which in turn create good brands, but Great companies create Everlasting brands, which offer a redefine consumer lifestyles and needs. As a platform Airbnb has been successful in creating a Cult brand with a great offering promise.
           
It has been a disruptor in the segments of Travel, Hospitality (extended to Hotels), and Housing Rentals (extended to Housing).

2) Airbnb’s Competence:

Though Airbnb is a platform it does not have a Tech competence, it’s a vanilla marketplace between Users who want to offer home / dwelling solutions to the one in needs on a tech platform.

Being a marketplace, it enjoys the competence derived from the exotic places offered by its owners along with the Brand Competence that Company has been able to created leading Airbnb to almost a Cult.

Though with its brand promise and positive consumer experiences, Airbnb has created a decent brand competence, but to develop it in to a competitive advantage, it will have to create a strategy mix of being highly consumer responsive along with imparting the service providers to be more hospitable to create positive consumer experience along with increasing the CSat.

Given its brand promise, Airbnb will have to define a vision to enhance its strategic direction towards enablement of Tech competence (for the time being, it enjoys none), given that currently it’s a disruptor in Travel, Hospitality and Housing.

It makes sense to leverage the existing disruptions by focusing on creating tech competence which can further disrupt the Hospitality segment by understanding the travel analytics and building a dynamic pricing solution on the economics of demand supply along with location characteristics, services of home solutions and levels of hospitality and comfort.

Along with it, Airbnb as well needs to establish a competence in understanding User’s interests and preferences while choosing different home solutions.

Over the long run, both these competences can be converged and leveraged to disrupt entire housing segment along with its existing virtual neighborhoods feature with an audacious vision of offering Plug and Play Personalised Home Solutions with de-emphasis on ownership of homes (Read along with Point 3).


3) Airbnb’s philosophy and The Continuum of (Sharing Economy + Thank You Economy)

Though Airbnb is often cited as a product of Sharing economy, its still offers only one of the many dimensions on the continuum of Sharing Economy. Currently, its offers an Economic solution with respect to slack and unutilized value of housing resource. However, as a platform built on the philosophy of Sharing Economy (along with a vision which can revolutionize entirely the way we perceive the home solutions market as), and backed by its brand promise, Airbnb should as well adopt the Barter based solutions to its list on both, short as well long term basis. Its basically laying foundation to the Sharing + Thank You economy, where things can be bartered for skills, services etc.

4) Creating an Experiential Brand  - Driving Cultural Transformations, Behavioral Changes, along with Perceptively altering the consumer needs
Along with enabling easy accommodation solutions anywhere, Airbnb is as well driving cultural transformations by enabling people to experiment and explore different cultures, driving Behavioral Changes by turning both, the service providers and users more hospitable and compatible and by perceptively offering these key features to Users with a sense of belonging and comfort, Airbnb is not just another experiential brand, its possibly going to be a lifestyle sooner.
           
While realizing this model to effect, its as well a decent opportunity to develop the framework for Personalisation of analytics with respect to the parameters of transformed way of living, namely, Shareability, diversity, compatibility, adaptability etc.

Please drop in your comments or reach out on [email protected]

      (Disclaimer: All product names, logos, and brands are property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, logos, and brands does not imply endorsement.)


0 comments: