Airbnb, Inc. Marketing Plan

...

*Grow existing network hosts to include unique locations.

*Better monitor the customer service helpline to ensure hosts and guests are happy.

*Seek better appeal to leisure travelers and business travelers.

*Improve the transition to mobile apps, giving guests and hosts better ability to interact.

In order for Airbnb to continue to increase its market presence they will need to address how they manage the already happy and active participants, while adding accommodations to reach a wider segment.

Company Resources

Over the years Airbnb has been lucky to have investors put millions into the company. Airbnb has invested in its hosts by offering free professional photography services. It has used its growth to invest in ads on key networks such as Google. The company is partnering with local businesses to offer travelers guided experiences. Networking will be the key to the overall experience.

They also support some smaller companies that help Airbnb customers for a percentage fee. A good example of this is Pillow, which used to be known as Airenvy. For a 15 percent fee of the booking price, Pillow will handle all aspects of hosting. This includes marketing the location, booking a stay, cleaning and checking the rentals and taking care of any problems that arise during the stay as well as other items. (Said, 2015)

Present Marketing Strategy

CEO Brian Chesky states that the Airbnb mission is to “bring back the idea of cities as villages”, as he wrote in a blog post. (Cava, 2014)Shifting to the mobile app will give the traveler a way to better connect with local areas. By integrating with social networking platforms, Airbnb is in a win situation when it comes to marketing their listings.

*Using a team of web designs, Airbnb has built a website that allows guest to refine travel searches.

*Social networks such as Twitter, Google Plus and Facebook gives guests the ability to share information with their network of friends.

* Trust is key to Airbnb as they are the one responsible for travelers, hosts and the company they run. This is evident by the insurance policy it has for any issues that arrise.

Product :Airbnb is a websource provider, between hosts and guests. Hosts provide listings through the server for guests looking for a vacation.

Place : Airbnb offers hosts and guests 24/7 customer service support. Helping both hosts and potential guests navigate the easy to use website.

Promotion: It goes without saying that if the guest has a great experience they are more likely to use the service again, maybe even list their own spare room.

Price:Airbnb provides its hosts with guidance to help determine a rate that is reasonable to charge, based on nightly, seasonal and longer term rates.

Marketing Collaborators - Current & Potential

Currently, there are over 190 countries that are all hosts to Airbnb customers; so while there are places that may be experiencing effects of natural disasters, there are many other places that are not. It is always a good idea to check on upcoming weather conditions of a location that tourists are wishing to go. An example of this is that during the week starting January 26th, 2014, the Northeast part of America was expecting a very bad winter storm with emergency situations possibly being declared in places like New York. A guest that might have had reservations may make the decision to cancel their reservation. The hosts can choose up to 3 various cancellation policies at the time of the reservation by the guest. This will be the difference between the guests receiving a full refund versus a one-day booking charge. However, Airbnb can waive the cancellation charges if there is an extenuating circumstance that occurs.

Political and Legal

While renting out your apartment or home may not be illegal, the rentals advertised on Airbnb’s site do violate some local housing regulations and laws. Many cities have laws against short-term rentals (less than 30 days) unless the host is living on the property during the guest’s stay. There are also laws regarding hotel and tourist taxes when properties are rented out for holidays. Airbnb has found legal troubles because their terms violate these laws and regulations. Airbnb has been fined €30,000, in Europe for violating their tourist laws. (Ballard, 2014)In addition, the New York Attorney General has been in a lengthy legal battle with the company over the short-term rental laws. Amsterdam is the first city to embrace the share economy that Airbnb advertises by passing an “Airbnb-friendly law”. (DutchAmsterdam, 2014)The law allows residents to rent out their home up to two months a year. The residents are also required to pay the necessary taxes that include a tourism tax.

Many local hotels are claiming that Airbnb is causing the costs of Bed and Breakfasts and hotel rooms to increase because they are unable to compete with the many low cost options available to travelers through Airbnb’s advertised rentals. And local governments are not pleased with the decrease in revenue due to the fact that Airbnb or their hosts do not charge hotel and tourism taxes. (Coldwell, 2014)Airbnb has started to account for the tax collection issue.

Here is a quote from the Airbnb website under “How do taxes work for hosts?” (Airbnb - Help Center - Taxes, 2014)

“In some locations, Airbnb has made agreements with government officials to collect and remit local taxes on behalf of hosts, making the tax collection process easier for all parties involved. For Airbnb listings in these areas, applicable local taxes are calculated and collected at the time of booking. This won't affect the payouts you receive for reservations. As a host, you'll continue to collect your payout of accommodation fees minus Airbnb service fees, just as you do today.” (Airbnb - Help Center - Taxes, 2014)

Competitive Analysis

Airbnb has many competitors: Overseas clones, Couchsurfing, 9Flats, Hotels, Trip Advisor, Expedia, and Home Away are just some. Looking at various destinations we can see how Airbnb compares against hotels. The data below, provided by GoEuro, shows that Airbnb needs

...