Blog Entry 4a

AIRBNB- Innovation Business Model

What is the important thing that we should consider when we are in holiday? Of course, accommodation! With all of technology and application that we have, we could arrange our accommodation depends on our budget. The one of application that we could use is Airbnb.


source: https://bmtoolbox.net/stories/airbnb/

Airbnb is an online marketplace for arranging or offering lodging, primarily homestays, or tourism experiences (Wikipedia, 2019). This application helps the host to connected with customer. In my opinion, Airbnb has a superior innovation in the hospitality business because they are different with the ordinary hotel business.

In the beginning, the founders, Joe Gebbia and Brian Chesky set up the the simple website to rent their room then Nathan Biecharczyk join later (https://bmtoolbox.net/stories/airbnb/). In the first time, they named the Airbnb with AirBed &Breakfast

After that, in 2008, they redesign their website and got some funding from other place. With their commitment and hard work, they could overtake Hilton Hotels in nights booked in 2012. Currently, as everyone could use, there is over than 1,500,000 listings in 34,000 cities and 190 countries. The customer could do the bookings in the online and on mobile devices. In 2015, the value of the company was $25.5 billion (https://bmtoolbox.net/stories/airbnb/)

In this case, we will discuss about innovation business model that Airbnb build for this business. I take this business model from Innovationtactics.com (https://www.innovationtactics.com/business-model-canvas-airbnb/). What is business model? Chaffey and Ellis stated that business model is a summary of how a company will generate revenue, identifying its product offering, value-added service, revenue source and target customers (Chaffey & Ellis, 2019, p.164).

I would like to highlight the value proposition of Airbnb. Host and Guest is their main partner in this business so Airbnb should give them fair obligations and rights. The example of the innovation of Airbnb is they give right to the Host to review the Guest that visiting their house. This right is very fair for me, because the foundation of this business is trust and how the attitude of the host or guest which is, they don’t know each other (Read: totally Stranger Things). If we look on the google review, just guest could review the Hotel, Café, Restaurant that they visited. But in Airbnb, both Host and Guest could give the review.

source : https://www.huffpost.com/entry/5-tips-to-protect-yoursel_b_13920834

Airbnb is giving the host easily access to arranges their listing from the check in and out time, their free amenities, the rules house, etc.  Even, the price of rent, the host could set their price by their self. Because Airbnb will take around 10% for the commission, and charges 3 % in the guest booking for Airbnb’s revenue.

Part of their marketing, they used the application and website as a core source for their business. In my opinion, their app is very friendly user and got a good review in the internet. In this era, traveler tend to look the cheap accommodation that match with their preferences and Airbnb offer that! In the application and website, the guest could write their preferences accommodation such as price, number of rooms, amenities, locations, etc.

source : https://airbnb.design/building-a-visual-language/

In my final analysis, Airbnb success to have innovation in their business field, Hospitality. Local hotel and motel could take an eye to Airbnb because Airbnb offer many of advantages to the host and guest which is they are key partner of Airbnb also the customer of hotel and motel.

References:

Chaffey, D. & Ellis-Chadwick, F. (2019). Digital Marketing: Strategy, Implementation and Practice. United Kingdom: Pearson

Wikipedia contributors. (2019, August 28). Airbnb. In Wikipedia, The Free Encyclopedia. Retrieved from : https://en.wikipedia.org/w/index.php?title=Airbnb&oldid=912805929

7 thoughts on “Blog Entry 4a

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  1. Guess what, finally I got information about airbnb, thanks to you. First time I heard about airbnb and I found it more interesting after reading this. Is it available in Indonesia or not?

    Like

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